Brainsway (BWAY) AI Stock Analysis

• Market Cap: $167.25M
• Dividend Yield: N/A
• Average Volume (3M): 60.97K
• Price to Earnings (P/E): 54.5
• Beta (1Y): 1.54
• Revenue Growth: 29.04%
• EPS Growth: N/A
• Country: US
• Employees: 134
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Devices
• EPS (TTM): 0.16
• Shares Outstanding: 18,869,228
• 10 Day Avg. Volume: 34,709
• 30 Day Avg. Volume: 60,974
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 18.29
• Price to Cash Flow (P/CF): 16.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.00
• Price Target Upside: 80.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Brainsway demonstrates strong financial performance and positive earnings call insights, highlighting substantial revenue growth and strategic advances. However, technical analysis suggests potential downside risks, and the high P/E ratio indicates overvaluation concerns. Overall, the company is well-positioned for growth, but investors should be cautious of high valuation and market momentum indicators.

Positive Factors

FDA Approval

BrainsWay received expanded FDA labeling for Deep TMS to treat late-life depression, increasing the upper limit of age range from 68 to 86 years of age.

Market Expansion

East Asian market penetration advances with the placement of 15 new systems in Taiwan and South Korea.

Revenue

The company recorded $11.4M in top-line revenue, beating analyst's forecast of $10.7M.

Negative Factors

Market Competition

The entry into the Canadian market last year via an exclusive multi-year distribution agreement may face intense competition from established local players.

Research and Development

The National Institutes of Health granted roughly $1.5 million to explore the efficacy of Brainsway’s Deep TMS system in treating substance use addictions, but results and commercialization timelines remain uncertain.

Brainsway Business Overview & Revenue Model

Company Description

Brainsway Ltd. (BWAY) is a global leader in advanced noninvasive neurostimulation treatments for mental health disorders. The company specializes in the development and commercialization of Deep Transcranial Magnetic Stimulation (Deep TMS) technology, which is used to treat various neurological and mental health conditions such as major depressive disorder, obsessive-compulsive disorder, and smoking addiction. Operating within the healthcare and medical device sectors, Brainsway's innovative solutions aim to improve patient outcomes through cutting-edge technology and evidence-based treatment protocols.

How the Company Makes Money

Brainsway makes money primarily through the sale and leasing of its Deep TMS systems to healthcare providers, clinics, and hospitals. Revenue is generated from the direct sale of the equipment as well as from ongoing service agreements and consumables required for the operation of the devices. The company also benefits from recurring revenue streams through leasing arrangements, which provide clients with access to the technology without the need for a large upfront investment. Additionally, Brainsway's revenue is supported by partnerships and collaborations with leading medical institutions and research organizations, which help to expand the adoption and efficacy of its treatments. Regulatory approvals in various countries further enhance its market reach and revenue potential.

Brainsway Financial Statement Overview

Summary

Brainsway has shown impressive financial improvement. With a strong revenue growth of 29% and a transition to positive net income, the balance sheet is robust with zero debt and healthy equity ratios. Cash flow has improved, though historical volatility in earnings and cash flows remains a concern.

Income Statement

Brainsway has demonstrated strong revenue growth with a notable increase from $31.785 million in 2023 to $41.016 million in 2024, representing a growth rate of approximately 29%. The company has successfully transitioned from a negative net income in previous years to a positive $2.921 million in 2024. Gross profit margin improved to 74.54% in 2024, indicating efficient cost management. EBIT and EBITDA margins have also turned positive, signaling operational improvements. However, the historical volatility in earnings remains a concern.

Balance Sheet

Brainsway's balance sheet is robust, highlighted by zero total debt in 2024 and a substantial increase in stockholders' equity to $62.313 million. The equity ratio stands at a healthy 66.32%, reflecting strong financial stability and low leverage. The company's ample cash reserves of $69.345 million further enhance its financial flexibility. The absence of debt significantly reduces financial risk, but the company should continue to focus on sustainable equity growth.

Cash Flow

The company's cash flow performance has strengthened, with operating cash flow increasing significantly to $10.23 million in 2024, enabling positive free cash flow of $6.508 million. The operating cash flow to net income ratio is healthy, reflecting efficient cash generation. However, the historical volatility in free cash flow highlights the need for consistent cash flow generation. The improvement in free cash flow from negative figures in prior years is a positive trend.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
41.02M	31.79M	27.18M	29.66M	22.06M
	Gross Profit
30.58M	23.48M	20.05M	23.06M	17.00M
	EBIT
1.39M	-4.96M	-12.68M	-5.00M	-4.83M
	EBITDA
3.09M	-2.31M	-11.45M	-4.67M	-3.46M
	Net Income Common Stockholders
2.92M	-4.20M	-13.35M	-6.46M	-5.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
69.34M	45.98M	47.85M	57.35M	17.18M
	Total Assets
93.99M	62.97M	64.48M	75.73M	34.01M
	Total Debt
0.00	471.00K	488.00K	754.00K	429.00K
	Net Debt
-69.34M	-10.05M	-47.09M	-16.17M	-16.53M
	Total Liabilities
31.67M	21.39M	19.08M	18.41M	14.38M
	Stockholders Equity
62.31M	41.58M	45.40M	57.32M	19.63M
Cash Flow		Free Cash Flow
6.51M	-1.10M	-7.82M	-1.35M	-3.91M
	Operating Cash Flow
10.23M	1.28M	-9.76M	884.00K	-1.44M
	Investing Cash Flow
30.38M	-37.41M	42.17M	-42.22M	-2.46M
	Financing Cash Flow
18.26M	-1.03M	-1.55M	41.52M	-1.03M

Brainsway Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWAY, the sentiment is Negative. The current price of 8.85 is below the 20-day moving average (MA) of 9.71, below the 50-day MA of 10.10, and below the 200-day MA of 8.94, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BWAY.

Brainsway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INMD	80 Outperform	$1.09B	6.72	24.31%	―	-19.76%	0.38%
BWAY	75 Outperform	$167.25M	54.50	5.62%	―	29.04%	―
BVS	52 Neutral	$682.59M	―	-20.86%	―	11.89%	79.18%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%
SENS	43 Neutral	$373.25M	―	-166.29%	―	0.37%	-20.49%
STIM	43 Neutral	$232.33M	―	-139.60%	―	4.96%	-29.29%
NVCR	43 Neutral	$1.81B	―	-46.67%	―	18.82%	19.76%