Stock fact sheet · data as of
Runway Growth Finance Corp. (RWAY): fair value, margin of safety and Wheel Score
Ticker symbol RWAY · Financial Services · Financial - Credit Services · United States · Speculative Income
Is RWAY undervalued?
RWAY has a margin of safety of 66%: the stock closed at 6.56 on 5 Nov 2026 against a GLS average fair value of 19.52. 4 of the 7 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Lynch (0.7379) and DCF (97.96). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files RWAY under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan. It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for RWAY
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 97.96 | +1393% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 7.04 | +7% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 2.98 | -55% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.7379 | -89% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 11.29 | +72% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 14.57 | +122% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 2.05 | -69% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.72 | -263% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.50 | -1% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Runway Growth Finance Corp. scores only 3 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability RWAY scores 6.0/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 3.6%, ROE 7.0%, ROA 3.5% - with debt at 0.93 times equity and negative free cash flow.
The dividend yield is high at 15.09% (payout ratio 655%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 6/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 22 Sep 2026.
| Piotroski F-score | 3 / 9 | ROIC | 3.6% |
|---|---|---|---|
| GLS Moat | 6.0 / 10 | ROE | 7.0% |
| Debt / equity | 0.93 | ROA | 3.5% |
| Free-cash-flow yield | -27.4% | Payout ratio | 655% |
| Institutions | 6 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 41: Weak
With a Wheel Score of 41 Runway Growth Finance Corp. sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (1,627 open interest, 36 a day); and filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 6, no serious red flags - Red Flags score 55 (under 60); and filter 8, big enough - market cap $275M (under $1.0B); Option trading (weak) is its weakest part.
Implied volatility is 59% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,627 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 337k shares a day on a market cap of $275M, with a beta of 0.63 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (1,627 open interest, 36 a day) |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Fails | Red Flags score 55 (under 60) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $275M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 66% below fair value | |
| Premium | Strong | implied volatility 59% | |
| Moat | Good | moat 6.0/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Weak | Red Flags score 55/100 | |
| Option trading | Weak | 36 contracts a day, 1,627 open interest | |
| Stability | Fair | beta 0.63, $275M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Runway Growth Finance Corp. reports earnings on 5 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Credit Services
The 12 companies below are the closest to Runway Growth Finance Corp. by market cap within the Financial - Credit Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RWAYL Runway Growth Finance Corp. - 7 | 25.35 | 26.69 | +5% | 20No options | $275M |
| HTT High Templar Tech Limited | 1.78 | 18.60 | +90% | 29Weak | $284M |
| MFIN Medallion Financial Corp. | 10.37 | 56.16 | +82% | 49Weak | $234M |
| PMTS CPI Card Group Inc. | 28.24 | 56.72 | +50% | 32No options | $327M |
| ORBS Eightco Holdings Inc. | 0.7933 | - | - | 11Weak | $333M |
| CPSS Consumer Portfolio Services, Inc. | 10.14 | 71.08 | +86% | 39Weak | $222M |
| TROO TROOPS, Inc. | 1.81 | - | - | 10Weak | $221M |
| RM Regional Management Corp. | 39.50 | 220.57 | +82% | 52Fair | $353M |
| TREE LendingTree, Inc. | 38.35 | 147.03 | +74% | 46Weak | $538M |
| OPFI OppFi Inc. | 6.37 | 53.03 | +88% | 41Weak | $543M |
| OPRT Oportun Financial Corporation | 13.01 | 40.48 | +68% | 44Weak | $598M |
| LX LexinFintech Holdings Ltd. | 0.6950 | 40.79 | +98% | 34Weak | $115M |
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Start free See the Sunday ScanQuestions about RWAY
Is RWAY undervalued right now?
By the GLS models, yes: at 6.56 the stock is 66% below the average fair value of 19.52 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RWAY and what does it mean?
RWAY scores 41 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 4, 6, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for RWAY?
19.52 per share as of 5 Nov 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Runway Growth Finance Corp. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does RWAY have listed options, and how liquid are they?
Yes. The nightly snapshot found 12 listed contracts with 1,627 open interest across all expiries and implied volatility of 59% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.