Brainsway (BWAY) AI Stock Analysis

• Market Cap: $313.08M
• Dividend Yield: N/A
• Average Volume (3M): 65.51K
• Price to Earnings (P/E): 52.4
• Beta (1Y): 1.24
• Revenue Growth: 27.37%
• EPS Growth: 269.84%
• Country: US
• Employees: 120
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.04
• Shares Outstanding: 19,564,130
• 10 Day Avg. Volume: 54,061
• 30 Day Avg. Volume: 65,506
• PEG Ratio: -0.33
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 3.90
• P/FCF Ratio: 24.63
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 4.53
• Enterprise Value/Gross Profit: 6.05
• Enterprise Value/Ebitda: 24.41
• 1Y Price Target: $20.00
• Price Target Upside: 17.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): $51.68M

• Rating: 77 Outperform
• Price Target: $18.50 ▲(9.02% Upside)

Brainsway's overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust growth and strategic progress. However, the high valuation and technical indicators suggest caution, balancing the optimistic outlook with potential risks.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

FDA Approval for Adolescent Treatment

This FDA approval expands market reach and strengthens competitive positioning, potentially increasing adoption and revenue.

Strong Balance Sheet

A strong balance sheet with no debt enhances financial flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure margins and profitability, requiring careful management to maintain financial health.

Pending FDA Clearance for Neurolief

Delays in FDA clearance can hinder product launch timelines and revenue generation, affecting strategic growth plans.

Historical Volatility in Earnings

Earnings volatility can create uncertainty in financial projections, impacting investor confidence and long-term planning.

Brainsway Business Overview & Revenue Model

Company Description

Brainsway Ltd. develops and sells noninvasive neurostimulation treatments for mental health disorders in the United States, Europe, Israel, and internationally. It offers Deep Transcranial Magnetic Stimulation platform technology for the treatment of major depressive disorders, anxious depression, obsessive-compulsive disorders, smoking addiction, bipolar disorders, post traumatic stress disorders, schizophrenia, Alzheimer's disease, autism, chronic pain, multiple sclerosis, post stroke rehabilitation, and Parkinson's diseases. The company primarily serves doctors, hospitals, and medical centers in the field of psychiatry. Brainsway Ltd. was founded in 2003 and is headquartered in Jerusalem, Israel.

How the Company Makes Money

Brainsway generates revenue primarily through the sale and leasing of its dTMS devices to healthcare providers, including hospitals and clinics. The company also earns money from ongoing service agreements and maintenance contracts associated with these devices. Additionally, Brainsway benefits from partnerships with various healthcare institutions and clinical studies that validate and promote the efficacy of its technology, potentially leading to increased adoption and usage. The company may also pursue reimbursement agreements with insurance providers, further facilitating sales and expanding its market reach.

Brainsway Financial Statement Overview

Summary

Brainsway has shown impressive financial improvement with strong revenue growth, a transition to positive net income, and a robust balance sheet with zero debt. The company's cash flow has also strengthened, although 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.09M	41.02M	31.79M	27.18M	29.66M	22.06M
Gross Profit	36.78M	30.58M	23.48M	20.05M	23.06M	17.00M
EBITDA	9.11M	5.36M	-2.56M	-11.45M	-4.67M	-3.46M
Net Income	6.25M	2.92M	-4.20M	-13.35M	-6.46M	-5.38M
Balance Sheet
Total Assets	113.06M	94.32M	62.97M	64.48M	75.73M	34.01M
Cash, Cash Equivalents and Short-Term Investments	70.46M	69.34M	45.98M	47.58M	57.35M	17.18M
Total Debt	6.75M	5.62M	471.00K	488.00K	754.00K	672.00K
Total Liabilities	43.00M	32.00M	21.39M	19.08M	18.41M	14.38M
Stockholders Equity	70.06M	62.31M	41.58M	45.40M	57.33M	19.63M
Cash Flow
Free Cash Flow	18.34M	6.50M	-1.10M	-9.76M	-1.35M	-3.91M
Operating Cash Flow	22.27M	10.30M	1.28M	-9.76M	884.00K	-1.44M
Investing Cash Flow	-18.30M	30.31M	-37.41M	42.17M	-42.22M	-2.46M
Financing Cash Flow	18.36M	18.26M	-1.03M	-1.55M	41.52M	-1.03M

Brainsway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWAY, the sentiment is Positive. The current price of 16.97 is above the 20-day moving average (MA) of 15.77, above the 50-day MA of 15.75, and above the 200-day MA of 12.44, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 88.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWAY.

Brainsway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWAY	77 Outperform	$313.08M	52.43	11.05%	―	27.37%	269.84%
VMD	76 Outperform	$262.70M	20.90	10.53%	―	18.90%	29.22%
TCMD	75 Outperform	$574.25M	33.19	8.80%	―	9.28%	21.00%
NPCE	61 Neutral	$544.91M	―	-169.27%	―	24.08%	24.08%
TLSI	54 Neutral	$343.25M	―	―	―	49.52%	19.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNWV	45 Neutral	$290.90M	―	―	―	40.89%	-749.65%

Brainsway Corporate Events

BrainsWay Initiates Clinical Trial for Alcohol Use Disorder

On November 17, 2025, BrainsWay Ltd. announced the launch of a multicenter clinical trial for its Deep TMS 360 system aimed at treating Alcohol Use Disorder (AUD). This trial represents a significant milestone for the company as it explores the potential of its next-generation multichannel TMS technology to reduce heavy drinking and cravings in individuals with AUD. The study will involve over 200 participants across various U.S. and international sites, marking an important step in BrainsWay’s efforts to expand into new therapeutic areas and address major public health challenges.

BrainsWay Gains FDA Approval for Adolescent Depression Treatment

On November 13, 2025, BrainsWay announced that it has received FDA clearance for its Deep TMS system to be used as an adjunct therapy for adolescents aged 15 to 21 suffering from major depressive disorder (MDD). This clearance allows BrainsWay to expand its market reach, making it the first and only TMS device approved for treating depression across a wide age range, from 15 to 86 years. The decision was based on a substantial dataset demonstrating the efficacy and safety of Deep TMS in reducing depressive symptoms and anxiety in adolescents. This milestone enhances BrainsWay’s position as a leader in noninvasive depression treatment, addressing a significant gap in effective therapies for adolescents with MDD.

Brainsway Reports Strong Q3 2025 Growth and Strategic Advances

On November 12, 2025, Brainsway Ltd. reported strong financial performance for Q3 2025, with a 29% year-over-year revenue increase to $13.5 million and a 137% rise in net profit. The company also highlighted strategic growth through FDA clearance of an accelerated protocol for MDD, a $2.5 million NIH grant for a study on Deep TMS for alcohol use disorder, and strategic equity investments in mental health providers. These developments underscore Brainsway’s commitment to innovation and expanding its market reach, enhancing its industry positioning and stakeholder value.

BrainsWay’s Q3 2025 Results Show Strong Growth and Strategic Advances

BrainsWay reported a significant 29% increase in revenue for the third quarter of 2025, reaching $13.5 million, and a notable rise in net profit by 137% to $1.6 million compared to the previous year. The company also announced FDA clearance for an accelerated Deep TMS protocol for major depressive disorder, and made strategic investments to enhance its market presence, including a $5 million investment in Neurolief Ltd. These developments indicate strong market positioning and potential for sustainable growth through strategic collaborations and expanded treatment indications.

BrainsWay Secures NIH Grant for Deep TMS Study on Alcohol Use Disorder

On November 4, 2025, BrainsWay announced that the U.S. National Institutes of Health (NIH) awarded a $2.5 million grant to a research team led by Stanford University and the Palo Alto Veterans Institute for Research. The grant supports a clinical study evaluating the efficacy of an accelerated Deep TMS protocol using BrainsWay’s device for treating Alcohol Use Disorder (AUD). This study, which involves 100 adults in a randomized, double-blind trial, aims to explore the potential of high-intensity Deep TMS in reducing relapse risk and engaging targeted brain circuits. The announcement follows BrainsWay’s recent FDA clearance for its H1 Coil for treating major depressive disorder, highlighting the company’s ongoing advancements in neuromodulation techniques.

BrainsWay Expands U.S. Investments with New Mental Health Partnerships

On October 27, 2025, BrainsWay Ltd. announced two additional minority stake investments in U.S. mental health providers, including an equity financing agreement with Tangient ATX Inc., which manages the Heading Health clinic network in Texas. These strategic investments, which bring the total to four in 2025, aim to enhance shareholder value by expanding patient access to innovative mental health treatments and supporting the growth of BrainsWay’s commercial partners.

BrainsWay Announces Cashless Exercise of Warrant by Valor

On October 14, 2025, BrainsWay Ltd. announced that Valor BrainsWay Holdings LLC exercised its warrant to purchase 1,500,000 American Depositary Shares (ADSs) of the company. The exercise was conducted on a cashless basis, resulting in the issuance of 553,730 ADSs to Valor without any cash proceeds for BrainsWay. This move is part of a private placement agreement established in November 2024, and it reflects strategic financial maneuvers by BrainsWay to manage its equity and strengthen its market position.

Brainsway Ltd. Reports Financial Growth in H1 2025

On September 30, 2025, Brainsway Ltd. released its condensed consolidated unaudited interim financial statements for the six-month period ending June 30, 2025. The report indicates a stable financial position with total assets increasing from $94,316,000 at the end of 2024 to $111,564,000 by mid-2025. This growth is attributed to an increase in both current and non-current assets, highlighting the company’s ongoing expansion and investment in its operations. The financial results reflect Brainsway’s strategic focus on enhancing its market presence and operational capabilities, which is likely to have positive implications for its stakeholders.

BrainsWay Gains FDA Clearance for Accelerated Depression Treatment Protocol

On September 16, 2025, BrainsWay Ltd. announced that it received FDA clearance for an accelerated Deep TMS protocol for treating major depressive disorder (MDD), including patients with comorbid anxiety symptoms. This new protocol, which reduces treatment time significantly, is now available in the U.S., potentially enhancing patient access and treatment efficiency. Clinical trials demonstrated that the accelerated protocol is comparable to the standard Deep TMS protocol in terms of depression score improvement, response, and remission rates, with no severe adverse events reported. This development marks a significant advancement in the treatment of MDD, addressing the need for more accessible and effective therapies for patients who do not respond to traditional treatments.

Brainsway Ltd. Announces Successful Outcomes of Annual Shareholder Meeting

At the Annual General Meeting held on September 11, 2025, Brainsway Ltd. successfully passed all proposed resolutions with the necessary majority of shareholder votes. Key decisions included the appointment of Kost Forer Gabbay & Kasierer as the independent auditors for 2025 and the re-election of several directors to the Board. Additionally, the meeting approved updates to the compensation package for CEO Hadar Levy, reflecting the company’s commitment to aligning executive incentives with its strategic goals.