RWAY (Runway Growth Finance) Beneish M-Score: -0.51 (As of Jul. 04, 2026)


RWAY Runway Growth Finance Corp RWAY
58 GF Score
Price $5.48
GF Value $9.50
Valuation Possible Value Trap
! 4 Warning Signs
View Full Analysis

What is Runway Growth Finance Beneish M-Score?

Runway Growth Finance RWAY -1.88% 58 Beneish M-Score is -0.51 as of Jul. 04, 2026. GuruFocus rates RWAY with a GF Score™ of 58/100 and a GF Value™ of $9.50 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 950 Asset Management companies, Runway Growth Finance ranks worse than 82.21% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -0.51 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Runway Growth Finance's Beneish M-Score or its related term are showing as below:

RWAY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Med: -2.08   Max: 0.9
Current: -0.51

During the past 8 years, the highest Beneish M-Score of Runway Growth Finance was 0.90. The lowest was -3.36. And the median was -2.08.

RWAY
58GF Score
Runway Growth Finance Corp RWAY
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Runway Growth Finance Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Runway Growth Finance for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 5.8745+0.528 * 1+0.404 * 1+0.892 * 0.1665+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 7.6066+4.679 * -0.134065-0.327 * 1.0243
=-0.51

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $8.54 Mil.
Revenue was -30.006 + 10.386 + 11.644 + 20.486 = $12.51 Mil.
Gross Profit was -30.006 + 10.386 + 11.644 + 20.486 = $12.51 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $904.93 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $7.08 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $441.70 Mil.
Net Income was -34.817 + 7.367 + 8.019 + 16.797 = $-2.63 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 5.934 + 20.633 + 92.415 + -0.297 = $118.69 Mil.
 Total Receivables was $8.73 Mil.
Revenue was 4.828 + 31.243 + 27.937 + 11.117 = $75.13 Mil.
Gross Profit was 4.828 + 31.243 + 27.937 + 11.117 = $75.13 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,032.90 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $5.59 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $492.21 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(8.54 / 12.51) / (8.73 / 75.125)
=0.682654 / 0.116206
=5.8745

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(75.125 / 75.125) / (12.51 / 12.51)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 0) / 904.926) / (1 - (0 + 0) / 1032.896)
=1 / 1
=1

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=12.51 / 75.125
=0.1665

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0 / (0 + 0)) / (0 / (0 + 0))
= /
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(7.082 / 12.51) / (5.591 / 75.125)
=0.566107 / 0.074423
=7.6066

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((441.703 + 0) / 904.926) / ((492.207 + 0) / 1032.896)
=0.48811 / 0.476531
=1.0243

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-2.634 - 0 - 118.685) / 904.926
=-0.134065

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Runway Growth Finance has a M-score of -0.51 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -0.51 mean?
Runway Growth Finance (RWAY) has a Beneish M-Score of -0.51 as of Jul. 04, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Runway Growth Finance and its competitors. According to the industry distribution chart, Runway Growth Finance ranks #781 out of 950 companies in the Asset Management industry, placing it in the top 82.2%.
Is Runway Growth Finance's Beneish M-Score too high?
Runway Growth Finance's current Beneish M-Score is -0.51. Based on the distribution chart, Runway Growth Finance ranks #781 out of 950 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Runway Growth Finance has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Runway Growth Finance's Beneish M-Score compare to NPV and SRV?
According to the Asset Management industry distribution chart, Runway Growth Finance ranks #781 out of 950 companies for Beneish M-Score. This places Runway Growth Finance in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Asset Management company?
A good Beneish M-Score depends on the Asset Management industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Runway Growth Finance and its competitors. Runway Growth Finance's current Beneish M-Score is -0.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Runway Growth Finance stock overvalued right now?
Based on GuruFocus' analysis, Runway Growth Finance (RWAY) is currently considered Possible Value Trap. The stock's GF Value™ is $9.50, compared to a current price of $5.48 — trading 42.3% below its estimated fair value. The current Beneish M-Score is -0.51. Runway Growth Finance's overall GF Score™ is 58/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Runway Growth Finance (RWAY), the current Beneish M-Score is -0.51 as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Runway Growth Finance (RWAY) Overvalued in 2026?

Based on GuruFocus' analysis, Runway Growth Finance stock appears to be undervalued. The current stock price of $5.48 is trading 42.3% below its estimated GF Value™ of $9.50. GuruFocus considers Runway Growth Finance to be Possible Value Trap.

Key valuation signals for RWAY:

  • Beneish M-Score: -0.51
  • GF Value™: $9.50 vs. price of $5.48 (42.3% below fair value)
  • GF Score™: 58/100 with 4 warning signs

No single metric tells the full story. See the RWAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Runway Growth Finance Business Description

Other Exchanges 0KG:Germany
Address 205 N. Michigan Avenue, Suite 4200, Chicago, IL, USA, 60601
Runway Growth Finance Corp is a specialty finance company focused on providing senior secured loans to high-growth-potential companies in technology, life sciences, healthcare information and services, business services, select consumer services and products, and other high-growth industries. The company has Investments in the United States, Germany, and UK, Canada, Netherlands, with the majority of its portfolio invested in the United States. The company's investment objective is to maximize its total return to its stockholders through current income on its loan portfolio, and secondarily through capital gain on its warrants and other equity positions.
58GF Score

Get the complete analysis for RWAY

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$5.48
Price
$9.50
GF Value