Runway Growth Finance Corp. 8.00% Notes due 2027 Fundamental Analysis
Runway Growth Finance Corp. 8.00% Notes due 2027 Fundamental Analysis
Runway Growth Finance Corp. 8.00% Notes due 2027 (RWAYZ) shows moderate financial fundamentals with a PE ratio of -85.19, profit margin of -2.60%, and ROE of -0.55%. The company generates $0.0B in annual revenue with strong year-over-year growth of 10.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RWAYZ's fundamental strength across five key dimensions:
Efficiency Score
WeakRWAYZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRWAYZ trades at attractive valuation levels.
Growth Score
ModerateRWAYZ shows steady but slowing expansion.
Financial Health Score
WeakRWAYZ carries high financial risk with limited liquidity.
Profitability Score
WeakRWAYZ struggles to sustain strong margins.
Key Financial Metrics
Is RWAYZ Expensive or Cheap?
P/E Ratio
RWAYZ trades at -85.19 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RWAYZ's PEG of 0.82 indicates potential undervaluation.
Price to Book
The market values Runway Growth Finance Corp. 8.00% Notes due 2027 at 0.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -27.38 times EBITDA. This is generally considered low.
How Well Does RWAYZ Make Money?
Net Profit Margin
For every $100 in sales, Runway Growth Finance Corp. 8.00% Notes due 2027 keeps $-2.60 as profit after all expenses.
Operating Margin
Core operations generate 7.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.55 in profit for every $100 of shareholder equity.
ROA
Runway Growth Finance Corp. 8.00% Notes due 2027 generates $-0.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Runway Growth Finance Corp. 8.00% Notes due 2027 generates strong operating cash flow of $50.47M, reflecting robust business health.
Free Cash Flow
Runway Growth Finance Corp. 8.00% Notes due 2027 generates strong free cash flow of $50.47M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.23 in free cash annually.
FCF Yield
RWAYZ converts 52.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-85.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How RWAYZ Stacks Against Its Sector Peers
| Metric | RWAYZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -85.19 | 19.38 | Better (Cheaper) |
| ROE | -0.55% | 804.00% | Weak |
| Net Margin | -2.60% | -7623.00% (disorted) | Weak |
| Debt/Equity | 1.01 | 1.07 | Neutral |
| Current Ratio | 0.00 | 609.22 | Weak Liquidity |
| ROA | -0.29% | -20946.00% (disorted) | Weak |
RWAYZ outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Runway Growth Finance Corp. 8.00% Notes due 2027's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
195.28%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
298.03%
Industry Style: Value, Dividend, Cyclical
High Growth