Runway Growth Finance Corp.
$6.28
-3.7%Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 6.8).
Valuation inputs: P/E 6.8, earnings yield +14.8%, momentum -3.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +7.0%, ROIC +8.0%).
Profitability stack: net margin +24.3%, ROE +7.0%, ROIC +8.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +49.5%, momentum -3.7%, net margin +24.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Runway Growth Finance Corp. Market vs Earnings Trajectory
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Runway Growth Finance Corp. Fair Value Envelope
Runway Growth Finance Corp. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Runway Growth Finance Corp. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Runway Growth Finance Corp. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Runway Growth Finance Corp. Street Expectations Map
Wall Street analysts project that RWAY stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 8.83, with estimates ranging from a low of 6.50 to a high of 10.00.
The consensus 1-year price target stands at 8.83, with estimates ranging from a low of 6.50 to a high of 10.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Runway Growth Finance Corp. Insider Positioning
During the last 12 months, insiders have purchased $45K and sold $30.85M worth of RWAY shares, resulting in $30.81M of net selling activity.
3 Months
7.1K
45.01K
560.1K
3.69M
-3.6M
-$3.65M
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
1.3M
11.31M
-11.3M
-$11.31M
9-12 Months
0
0.00
1.5M
15.85M
-15.8M
-$15.85M
Top Buyers
Raterman Thomas B.
Officer: Cfo, Coo
$45K
Top Sellers
Ocm Growth Holdings Llc
10 Percent Owner
$27.16M
Carlson Capital, L.P.
10 Percent Owner
$3.69M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $30.81M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
2 insider sellers vs. 1 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.
rway Dividend History
Learning Layer
Related Guides
Build conviction on RWAY by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.