Brainsway (BWAY) AI Stock Analysis

• Market Cap: $244.51M
• Dividend Yield: N/A
• Average Volume (3M): 45.78K
• Price to Earnings (P/E): 59.9
• Beta (1Y): 1.40
• Revenue Growth: 26.86%
• EPS Growth: N/A
• Country: US
• Employees: 120
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Devices
• EPS (TTM): 0.02
• Shares Outstanding: 18,894,863
• 10 Day Avg. Volume: 59,694
• 30 Day Avg. Volume: 45,780
• PEG Ratio: -0.05
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.72
• Enterprise Value/Market Cap: 0.12
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.95
• Enterprise Value/Ebitda: 2.23
• 1Y Price Target: $15.33
• Price Target Upside: 18.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $14.50 ▲(11.71%Upside)

Brainsway's strong financial performance, driven by revenue growth and balance sheet strength, is the primary driver of its stock score. Technical indicators signal bullish momentum but are tempered by overbought conditions. Valuation concerns arise from a high P/E ratio. Positive earnings call guidance supports future growth, though increased expenses and geopolitical risks need monitoring.

Positive Factors

Clinical Trial Results

The accelerated Deep TMS protocol resulted in outcomes comparable to the standard once-daily TMS protocol while requiring considerably fewer visits to the clinic.

Financial Performance

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

Regulatory Approval

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

Negative Factors

Market Expansion Challenges

Risks include the inability to advance in other indications.

Market Risks

Risks include slower-than-projected market uptake of Deep TMS systems and failure to expand reimbursement and market access.

Brainsway Business Overview & Revenue Model

Company Description

Brainsway (BWAY) is a medical technology company specializing in the development and commercialization of advanced non-invasive neurostimulation treatments for mental health disorders. The company is primarily focused on its flagship Deep Transcranial Magnetic Stimulation (Deep TMS) system, which is used for treating major depressive disorder (MDD), obsessive-compulsive disorder (OCD), and other neuropsychiatric conditions. Operating in the healthcare sector, Brainsway's innovative solutions aim to improve the quality of life for patients by offering alternative treatment options that are effective and have minimal side effects.

How the Company Makes Money

Brainsway generates revenue through the sale and leasing of its Deep TMS systems to healthcare providers, clinics, and hospitals worldwide. The company also earns income from recurring service and maintenance contracts associated with these systems. Additionally, Brainsway benefits from partnerships and collaborations with research institutions and healthcare organizations that further expand the use and development of its technology. Key revenue streams include direct sales, leasing agreements, and ongoing support services, which collectively contribute to the company's financial stability and growth.

Brainsway Financial Statement Overview

Summary

Brainsway has demonstrated strong financial performance with significant revenue growth, robust balance sheet with zero debt, and improved cash flow generation. The transition to positive net income and operational improvements are notable. However, 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
EBITDA	5.47M	-2.31M	-11.45M	-4.67M	-3.46M
Net Income	2.92M	-4.20M	-13.35M	-6.46M	-5.38M
Balance Sheet
Total Assets	94.32M	62.97M	64.48M	75.73M	34.01M
Cash, Cash Equivalents and Short-Term Investments	69.34M	45.98M	47.85M	57.35M	17.18M
Total Debt	5.62M	471.00K	488.00K	754.00K	429.00K
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	6.50M	-1.10M	-7.82M	-1.35M	-3.91M
Operating Cash Flow	10.30M	1.28M	-9.76M	884.00K	-1.44M
Investing Cash Flow	30.31M	-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: Positive
• Last Price: 12.98
• 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 12.98 is above the 20-day moving average (MA) of 11.65, above the 50-day MA of 10.41, and above the 200-day MA of 9.86, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 68.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.16 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	75 Outperform	$244.51M	59.90	7.41%	―	26.86%	―
SGHT	57 Neutral	$210.43M	―	-52.87%	―	-4.16%	12.79%
MYO	53 Neutral	$77.71M	―	-35.68%	―	69.17%	39.01%
CVRX	53 Neutral	$157.48M	―	-76.01%	―	25.62%	11.86%
Sector *	51 Neutral	$7.55B	0.30	-61.90%	2.27%	17.11%	1.58%
TLSI	50 Neutral	$195.58M	―	271.41%	―	85.03%	53.73%
CTSO	46 Neutral	$80.77M	―	-94.65%	―	-5.86%	50.76%
CTSO	46 Neutral	$80.77M	―	-94.65%	―	-5.86%	50.76%