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Brainsway Ltd (IL:BWAY)
:BWAY
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Brainsway
(BWAY)
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Rating:72Outperform
Price Target:
2,819.00
▲(8.21% Upside)
Brainsway's overall stock score is driven by strong financial performance and positive earnings call highlights, indicating robust growth and strategic positioning. However, technical indicators suggest potential short-term bearish momentum, and the high P/E ratio points to overvaluation concerns. The absence of corporate events and dividend yield further tempers the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term financial stability and market position.
FDA Approval
FDA approval for new treatment protocols can significantly enhance product appeal and adoption, driving future revenue growth and market expansion.
Strategic Investments
Strategic investments in partners can expand market reach and utilization of Brainsway's technology, fostering long-term growth and competitive advantage.
Negative Factors
Increased Operating Expenses
Rising operating expenses can pressure margins and reduce profitability, potentially impacting financial health if not managed effectively over time.
Delay in FDA Clearance
Delays in regulatory approvals can hinder product launches and revenue growth, affecting strategic plans and competitive positioning in the market.
High Valuation Concerns
High valuation relative to industry averages may limit stock attractiveness and increase risk if growth expectations are not met, impacting investor sentiment.
Brainsway (BWAY) vs. iShares MSCI Israel ETF (EIS)
Market Cap
1.02B
Dividend YieldN/A
Average Volume (3M)85.46K
Price to Earnings (P/E)44.3
Beta (1Y)-0.07
Revenue Growth21.13%
EPS Growth251.25%
CountryIL
Employees120
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)13.80
Shares Outstanding39,128,260
10 Day Avg. Volume88,081
30 Day Avg. Volume85,462
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)2.56
Price to Sales (P/S)3.88
P/FCF Ratio24.49
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 DescriptionBrainsway 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 MoneyBrainsway generates revenue primarily through the sale and leasing of its dTMS systems to healthcare providers, including hospitals and clinics. The company also earns income from the sale of treatment sessions, which are billed as patients undergo therapy using their equipment. Additionally, Brainsway may enter into partnerships with healthcare institutions for research and development, which can provide funding and enhance its product offerings. The growing recognition of dTMS as a viable treatment option for mental health disorders contributes to Brainsway's earnings, alongside potential reimbursement from insurance providers for the treatments administered.
Brainsway Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 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.Q3-2025 Updates
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.
Increase in Deep TMS System Shipments
The company shipped 90 Deep TMS systems during the quarter, a 43% increase compared to the same period last year, bringing the total installed base to over 1,600 systems globally.
Raised Financial Guidance
BrainsWay raised the midpoint of their full-year 2025 revenue guidance to $51-52 million, up from $50-52 million, and increased expected operating profit to 6-7% of revenue from 4-5%.
FDA Approval for Accelerated Protocol
The U.S. FDA granted an expansion of the treatment protocol for the Deep TMS system to include an accelerated protocol for major depressive disorder, potentially improving patient convenience and appeal.
Strategic Investments and Growth
BrainsWay made strategic minority investments in mental health providers, with utilization of Deep TMS systems at partner clinics increasing over 50% since collaboration.
Strong Financial Performance
Q3 2025 gross profit was $10.2 million, with a strong gross margin of 75%. Net profit increased to $1.6 million from $0.7 million in Q3 2024.
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.
Delay in FDA Clearance for Neurolief
Anticipated FDA clearance for Neurolief's product has been delayed, affecting potential market launch timelines.
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
Brainsway demonstrates significant financial improvement across all metrics. Revenue and profitability have increased markedly, supported by strong margins and efficient cost management. The balance sheet is healthy, with low leverage and a strong equity position. Cash flow generation is robust, further enhancing financial stability. The company is well-positioned for future growth and operational efficiency.Income Statement
Brainsway's income statement shows a strong upward trajectory in revenue, with a recent annual increase of 29.06%. The gross profit margin is high at 74.56%, indicating effective cost management. The net profit margin turned positive to 7.12% after consecutive losses in prior years, demonstrating substantial improvement. EBIT and EBITDA margins are also positive, reflecting operational efficiency gains.80
Positive
Balance Sheet
The balance sheet reflects a strong equity ratio of 66.05%, suggesting financial stability. The debt-to-equity ratio is low at 0.09, indicating minimal leverage and low financial risk. Return on equity is 4.69%, showing positive shareholder returns, though there is room for improvement. Overall, the balance sheet is solid with a focus on equity over debt.75
Positive
Cash Flow
Cash flow analysis reveals robust growth, with a free cash flow growth rate of 689.89%, showcasing strong operational performance and cash generation. The operating cash flow to net income ratio is 3.53, highlighting efficient cash conversion. Free cash flow to net income ratio is 2.23, indicating healthy free cash flow relative to net income. The company exhibits strong cash flow generation and management.78
Positive
| 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 | 47.85M | 57.35M | 17.18M |
| Total Debt | 6.75M | 5.62M | 471.00K | 488.00K | 754.00K | 429.00K |
| Total Liabilities | 43.00M | 32.00M | 21.39M | 19.08M | 18.41M | 14.38M |
| Stockholders Equity | 70.06M | 62.31M | 41.58M | 45.40M | 57.32M | 19.63M |
Cash Flow | ||||||
| Free Cash Flow | 18.34M | 6.50M | -1.10M | -7.82M | -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
Positive
2605.00
Price Trends
2609.52
Negative
2427.26
Positive
2113.32
Positive
Market Momentum
-31.49
Positive
52.38
Neutral
63.97
Neutral
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 2605 is above the 20-day moving average (MA) of 2588.20, below the 50-day MA of 2609.52, and above the 200-day MA of 2113.32, indicating a neutral trend. The MACD of -31.49 indicates Positive momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 63.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:BWAY.
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Brainsway Corporate Events
BrainsWay Reports Strong Q3 2025 Performance
Nov 12, 2025
BrainsWay is a global leader in noninvasive neurostimulation treatments for mental health disorders, utilizing its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technology. The company, with operations in the United States and Israel, focuses on advancing neuroscience to improve health outcomes.
BrainsWay Reports Strong Q2 2025 Financial Results
Aug 14, 2025
BrainsWay Ltd. is a global leader in advanced noninvasive neurostimulation treatments for mental health disorders, utilizing its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS™) technology to address conditions such as major depressive disorder, obsessive-compulsive disorder, and smoking addiction. The company operates primarily in the healthcare sector with a focus on mental health solutions.
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.