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Upturn AI SWOT - About
Runway Growth Finance Corp (RWAY)
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Upturn Advisory Summary
07/03/2025: RWAY (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
9 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $10.92
1 Year Target Price $10.92
| 3 | Strong Buy |
| 0 | Buy |
| 6 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 14.4% | Avg. Invested days 46 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 07/03/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 403.35M USD | Price to earnings Ratio 6.59 | 1Y Target Price 10.92 |
Price to earnings Ratio 6.59 | 1Y Target Price 10.92 | ||
Volume (30-day avg) 9 | Beta 0.59 | 52 Weeks Range 8.06 - 10.95 | Updated Date 07/4/2025 |
52 Weeks Range 8.06 - 10.95 | Updated Date 07/4/2025 | ||
Dividends yield (FY) 13.08% | Basic EPS (TTM) 1.64 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 45.3% | Operating Margin (TTM) 73.13% |
Management Effectiveness
Return on Assets (TTM) 6.32% | Return on Equity (TTM) 12.28% |
Valuation
Trailing PE 6.59 | Forward PE 6.92 | Enterprise Value 874588928 | Price to Sales(TTM) 2.88 |
Enterprise Value 874588928 | Price to Sales(TTM) 2.88 | ||
Enterprise Value to Revenue 11.92 | Enterprise Value to EBITDA - | Shares Outstanding 37347400 | Shares Floating - |
Shares Outstanding 37347400 | Shares Floating - | ||
Percent Insiders 1.04 | Percent Institutions 58.06 |
Upturn AI SWOT
Runway Growth Finance Corp
Company Overview
History and Background
Runway Growth Finance Corp. was founded in 2015 and focuses on providing venture debt to high-growth technology and life sciences companies. It operates as a specialty finance company, targeting companies that have already received significant equity investment.
Core Business Areas
- Venture Debt Financing: Provides term loans and other debt solutions to venture-backed companies, supporting their growth and expansion.
- Direct Lending: Engages in direct lending activities, offering customized financing solutions to meet the specific needs of its portfolio companies.
- Warrant and Equity Investments: Alongside debt, Runway may obtain warrants or equity positions for increased potential upside.
Leadership and Structure
The company is led by David B. Spreng, CEO, and has a management team with experience in venture capital, private equity, and lending. It operates as a business development company (BDC), regulated under the Investment Company Act of 1940.
Top Products and Market Share
Key Offerings
- Term Loans: Term loans are the primary product, providing capital for various purposes such as working capital, acquisitions, and capital expenditures. Market share data specific to Runway's exact niche is difficult to pinpoint, but the broader venture debt market is competitive. Competitors include Hercules Capital (HTGC), SLR Investment Corp. (SLRC), and TriplePoint Venture Growth (TPVG).
- Equipment Financing: Runway also offers equipment financing solutions to help companies acquire necessary assets. Similar to term loans, exact market share is hard to define but is smaller than term loans, but complements it and is part of the venture debt eco system. Competitors are the same as term loans, Hercules Capital (HTGC), SLR Investment Corp. (SLRC), and TriplePoint Venture Growth (TPVG).
Market Dynamics
Industry Overview
The venture debt market caters to high-growth companies that may not qualify for traditional bank loans. It is a specialized segment of the broader debt market, influenced by venture capital activity and the demand for growth capital.
Positioning
Runway Growth Finance Corp. positions itself as a leading provider of venture debt, focusing on larger loan sizes and established venture-backed companies. It aims to provide flexible financing solutions tailored to the specific needs of its portfolio companies.
Total Addressable Market (TAM)
The global venture debt market size was estimated at $57.13 billion in 2023 and is projected to reach $134.06 billion by 2032. Runway Growth is positioned to capture a share of this market by offering competitive debt solutions. The TAM is dependent on venture capital funding availability and company need for debt financing
Upturn SWOT Analysis
Strengths
- Experienced management team
- Focus on high-growth technology and life sciences companies
- Direct origination platform
- Disciplined underwriting process
- Strong relationship with equity providers
Weaknesses
- Concentration risk in technology and life sciences sectors
- Potential for increased competition in the venture debt market
- Reliance on continued venture capital funding
- Relatively high cost of capital
Opportunities
- Growing demand for venture debt financing
- Expansion into new sectors or geographies
- Development of new financing products
- Strategic acquisitions of smaller competitors
Threats
- Economic downturn leading to decreased venture capital funding
- Increased interest rates impacting borrowing costs
- Regulatory changes affecting BDCs
- Credit risk associated with lending to growth-stage companies
Competitors and Market Share
Key Competitors
- HTGC
- SLRC
- TPVG
Competitive Landscape
Runway Growth Finance Corp. competes with other BDCs and venture debt funds. Its competitive advantages include its experienced management team and focus on larger loan sizes. Disadvantages include its concentration risk in technology and life sciences.
Growth Trajectory and Initiatives
Historical Growth: The company has experienced significant growth in its investment portfolio and revenue over the past several years, driven by increasing demand for venture debt financing.
Future Projections: Analyst estimates project continued growth in revenue and earnings over the next few years, supported by ongoing venture capital activity and expansion of the company's investment platform.
Recent Initiatives: Recent initiatives include expanding the origination team and diversifying the investment portfolio.
Summary
Runway Growth Finance Corp. is a specialized finance company focusing on venture debt. The company has experienced steady growth and revenue, benefitting from the growth of venture-backed companies. The high dividend yield attracts income-seeking investors. However, potential weaknesses related to concentration risks, cost of capital, and economic downturn require careful consideration. Runway needs to be mindful of changes in the competitive lending landscape.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Runway Growth Finance Corp
Exchange NASDAQ | Headquaters Menlo Park, CA, United States | ||
IPO Launch date 2021-10-21 | Founder, President, CEO & Director Mr. David R. Spreng | ||
Sector Financial Services | Industry Credit Services | Full time employees - | |
Full time employees - | |||
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.
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