Brainsway Ltd (IL:BWAY)
:BWAY
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Brainsway
(BWAY)
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Rating:76Outperform
Price Target:
4,720.00
▲(26.95% Upside)
Action:ReiteratedDate:03/12/26
The score is driven primarily by strong financial momentum (revenue growth, profitability turn, improving cash generation, and a conservative balance sheet) and supportive technical trends (price above key moving averages with positive momentum). These positives are tempered by a demanding valuation (high P/E, no dividend) while the earnings call adds support via raised guidance and strong demand indicators despite some cost and regulatory-delay headwinds.
Positive Factors
Installed base growth
A growing installed base (1,600+ systems; 90 units shipped in quarter, +43% YoY) creates durable revenue visibility via recurring consumables, service and maintenance. Larger installed base supports utilization gains, provider adoption and operating leverage over the medium term.
Negative Factors
Recent profit inflection risk
Transitioning from multi-year losses to profitability is encouraging but creates execution risk: sustaining margin gains and net income requires continued revenue growth, consistent utilization and cost discipline. A reversal would quickly pressure cash generation and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Installed base growth
A growing installed base (1,600+ systems; 90 units shipped in quarter, +43% YoY) creates durable revenue visibility via recurring consumables, service and maintenance. Larger installed base supports utilization gains, provider adoption and operating leverage over the medium term.
Read all positive factors
Brainsway (BWAY) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪1.76B
Dividend YieldN/A
Average Volume (3M)85.46K
Price to Earnings (P/E)61.5
Beta (1Y)0.04
Revenue Growth21.13%
EPS Growth251.25%
CountryIL
Employees120
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)26.00
Shares Outstanding40,033,028
10 Day Avg. Volume88,081
30 Day Avg. Volume85,462
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)5.11
Price to Sales (P/S)6.62
P/FCF Ratio21.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
How the Company Makes Money
BrainsWay generates revenue primarily by selling and/or leasing its Deep TMS systems to clinics, hospitals, and other healthcare providers, and by recurring revenue tied to ongoing use of those systems. Key revenue streams include: (1) capital equ...
Brainsway Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in revenue and system shipments, successful strategic investments, and improved financial guidance. However, there were increased operating expenses and delays in FDA clearance for a strategic partner's product. Overall, the positives significantly outweigh the negatives.Positive Updates
Record Quarterly Revenue
BrainsWay reported record quarterly revenue of $13.5 million for Q3 2025, a 29% increase compared to the same period last year.
Negative Updates
Increased Operating Expenses
Sales and marketing expenses increased to $4.7 million from $4.1 million, and R&D expenses increased to $2.4 million from $1.8 million year-over-year.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Quarterly Revenue
BrainsWay reported record quarterly revenue of $13.5 million for Q3 2025, a 29% increase compared to the same period last year.
Read all positive updates
Company Guidance
In the recent BrainsWay Third Quarter 2025 Earnings Conference Call, the company reported a record quarterly revenue of $13.5 million, marking a 29% increase from the previous year, driven by the shipment of 90 Deep TMS systems, a 43% rise year-over-year, expanding their installed base to over 1,600 systems globally. With increased visibility for the remainder of the year, BrainsWay raised its full-year revenue guidance to $51 million to $52 million from the previous range of $50 million to $52 million, and projected operating profit margins of 6% to 7%, up from 4% to 5%, and adjusted EBITDA margins of 13% to 14%, up from 12% to 13%. The company emphasized strategic efforts including minority interest investments in mental health providers, with utilization up over 50% in certain clinics, and highlighted regulatory advancements like the U.S. FDA's approval for an accelerated Deep TMS protocol for treating major depressive disorder, anticipated to enhance market appeal. BrainsWay's performance reflects strong market demand with a book-to-bill ratio of 1.3x and remaining performance obligations of $65 million, signaling solid future revenue prospects.Brainsway Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
76
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 56.53M | 41.02M | 31.79M | 27.18M | 29.66M |
| Gross Profit | 42.63M | 30.58M | 23.48M | 20.05M | 23.06M |
| EBITDA | 6.34M | 5.36M | -2.56M | -11.45M | -4.67M |
| Net Income | 8.26M | 2.92M | -4.20M | -13.35M | -6.46M |
Balance Sheet | |||||
| Total Assets | 112.94M | 94.32M | 62.97M | 64.48M | 75.73M |
| Cash, Cash Equivalents and Short-Term Investments | 67.97M | 69.34M | 45.98M | 47.85M | 57.35M |
| Total Debt | 6.82M | 5.62M | 471.00K | 488.00K | 754.00K |
| Total Liabilities | 34.67M | 32.00M | 21.39M | 19.08M | 18.41M |
| Stockholders Equity | 73.24M | 62.31M | 41.58M | 45.40M | 57.32M |
Cash Flow | |||||
| Free Cash Flow | 17.62M | 6.50M | -1.10M | -7.82M | -1.35M |
| Operating Cash Flow | 19.51M | 10.30M | 1.28M | -9.76M | 884.00K |
| Investing Cash Flow | -18.94M | 30.31M | -37.41M | 42.17M | -42.22M |
| Financing Cash Flow | -2.40M | 18.26M | -1.03M | -1.55M | 41.52M |
Brainsway Technical Analysis
Positive
3718.00
Price Trends
3816.66
Positive
3322.47
Positive
2812.51
Positive
Market Momentum
168.84
Negative
61.36
Neutral
86.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BWAY, the sentiment is Positive. The current price of 3718 is below the 20-day moving average (MA) of 4013.45, below the 50-day MA of 3816.66, and above the 200-day MA of 2812.51, indicating a bullish trend. The MACD of 168.84 indicates Negative momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:BWAY.
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.