Brainsway (BWAY) AI Stock Analysis

• Market Cap: $289.80M
• Dividend Yield: N/A
• Average Volume (3M): 85.68K
• Price to Earnings (P/E): 53.4
• Beta (1Y): 1.50
• Revenue Growth: 27.22%
• EPS Growth: 695.07%
• Country: US
• Employees: 120
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.05
• Shares Outstanding: 18,972,810
• 10 Day Avg. Volume: 67,908
• 30 Day Avg. Volume: 85,680
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 3.83
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: 20.84
• 1Y Price Target: $18.00
• Price Target Upside: 17.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $16.50 ▲(7.42% Upside)

Brainsway's overall stock score is driven by its strong financial performance and positive earnings call, highlighting significant revenue growth and strategic investments. However, the high valuation and technical indicators suggesting overbought conditions temper the score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term financial stability and expansion potential.

Balance Sheet Health

A strong balance sheet with no debt enhances financial flexibility, reduces risk, and supports strategic investments for future growth.

Strategic Investments

Strategic investments in innovative technologies can drive future growth and expand treatment offerings, enhancing competitive positioning.

Negative Factors

Regulatory Dependence

Dependence on regulatory approvals introduces uncertainty and potential delays, which can impact growth and strategic execution.

Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, necessitating efficient cost management to sustain earnings growth.

Historical Earnings Volatility

Earnings volatility can impact investor confidence and financial planning, highlighting the need for consistent performance to ensure stability.

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 of its Deep TMS systems to hospitals, clinics, and other healthcare providers. The company also earns income from recurring revenue streams associated with the sale of disposable treatment accessories used in conjunction with the equipment. In addition to direct sales, Brainsway benefits from partnerships with healthcare institutions and organizations that facilitate the adoption of its technology in clinical settings. Furthermore, the company may receive reimbursements from insurance providers for treatments administered using its systems, which contributes to its overall revenue growth.

Brainsway Financial Statement Overview

Summary

Brainsway has demonstrated strong financial performance with significant revenue growth, a transition to positive net income, and a robust balance sheet with zero debt. The company has also improved its cash flow generation. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.08M	41.02M	31.79M	27.18M	29.66M	22.06M
Gross Profit	34.34M	30.58M	23.48M	20.05M	23.06M	17.00M
EBITDA	8.46M	5.36M	-2.31M	-11.45M	-4.67M	-3.46M
Net Income	5.34M	2.92M	-4.20M	-13.35M	-6.46M	-5.38M
Balance Sheet
Total Assets	111.56M	94.32M	62.97M	64.48M	75.73M	34.01M
Cash, Cash Equivalents and Short-Term Investments	78.00M	69.34M	45.98M	47.85M	57.35M	17.18M
Total Debt	6.13M	5.62M	471.00K	488.00K	754.00K	429.00K
Total Liabilities	43.43M	32.00M	21.39M	19.08M	18.41M	14.38M
Stockholders Equity	68.13M	62.31M	41.58M	45.40M	57.32M	19.63M
Cash Flow
Free Cash Flow	18.73M	6.50M	-1.10M	-7.82M	-1.35M	-3.91M
Operating Cash Flow	23.16M	10.30M	1.28M	-9.76M	884.00K	-1.44M
Investing Cash Flow	-21.00M	30.31M	-37.41M	42.17M	-42.22M	-2.46M
Financing Cash Flow	17.87M	18.26M	-1.03M	-1.55M	41.52M	-1.03M

Brainsway Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWAY, the sentiment is Neutral. The current price of 15.36 is below the 20-day moving average (MA) of 15.72, above the 50-day MA of 13.85, and above the 200-day MA of 11.07, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 22.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BWAY.

Brainsway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWAY	74 Outperform	$289.80M	53.45	9.70%	―	27.22%	695.07%
TLSI	48 Neutral	243.35M	-4.13	128.34%	―	45.50%	53.07%
CVRX	48 Neutral	196.92M	-3.54	-90.19%	―	23.11%	18.06%
SGHT	47 Neutral	188.00M	-3.67	-58.85%	―	-3.89%	9.68%
CTSO	46 Neutral	60.63M	-5.27	-84.14%	―	-7.81%	65.39%
MYO	44 Neutral	32.13M	-4.18	-25.02%	―	93.07%	13.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Brainsway Corporate Events

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.

BrainsWay Invests in Neurolief to Expand At-Home Mental Health Treatments

On August 21, 2025, BrainsWay Ltd. announced a strategic investment in Neurolief Ltd., marking its entry into the market for at-home mental health therapies. This $5 million convertible loan, with options for further funding, aims to expand BrainsWay’s total addressable market by leveraging Neurolief’s innovative Proliv™Rx device, pending FDA approval, which offers treatment for major depressive disorder outside of clinical settings. This collaboration is expected to enhance BrainsWay’s market presence and provide new treatment options for patients who struggle to access traditional clinics.

BrainsWay Acquires Minority Stake in Axis Integrated Mental Health

On August 20, 2025, BrainsWay Ltd. announced a strategic equity financing agreement with Axis Integrated Mental Health, investing $2.3 million initially with a potential additional $1 million. This investment aligns with BrainsWay’s strategy to enhance access to innovative mental health treatments and support healthcare providers in expanding their services. The partnership aims to leverage BrainsWay’s Deep TMS technology to improve patient outcomes and broaden Axis’s clinical services platform.

BrainsWay Achieves Record Q2 Revenue and Raises 2025 Guidance

On August 13, 2025, BrainsWay Ltd. reported a record quarterly revenue of $12.6 million for Q2 2025, marking a 26% increase from the previous year. The company also raised its full-year 2025 revenue and EBITDA guidance, reflecting strong business momentum and successful execution of its growth strategy. With a 35% increase in shipped Deep TMS systems and significant progress in strategic initiatives, including equity financing transactions and clinical trials, BrainsWay continues to strengthen its position in the mental health industry.

BrainsWay Secures $20M Financing and Reports Strong Q2 2025 Growth

On August 13, 2025, BrainsWay announced a strategic partnership with Valor Equity Partners, securing $20 million in equity financing to strengthen its position in the TMS industry. The company reported strong financial performance in Q2 2025, with revenue of $12.6 million, a 26% increase year-over-year, and a net profit of $2 million, up 240% year-over-year. BrainsWay also raised its full-year 2025 revenue and EBITDA guidance, highlighting its transition to a recurring revenue model and its strategic initiatives to accelerate growth, including a $5 million minority investment in Stella, a leading U.S.-based interventional psychiatry platform.

Brainsway Announces Annual General Meeting for September 2025

Brainsway Ltd. has announced its Annual General Meeting of Shareholders, scheduled for September 11, 2025, in Jerusalem, Israel. The meeting will address key proposals, including the appointment of Kost Forer Gabbay & Kasierer as the company’s independent auditors for 2025, the re-election of board members, and the approval of updated compensation and equity grants for CEO Hadar Levy. This meeting is significant for stakeholders as it will influence the company’s governance and financial oversight for the coming year.