Brainsway (BWAY) AI Stock Analysis

• Market Cap: 835.64M
• Dividend Yield: N/A
• Average Volume (3M): 76.90K
• Price to Earnings (P/E): 56.6
• Beta (1Y): 0.39
• Revenue Growth: 25.65%
• EPS Growth: N/A
• Country: IL
• Employees: 120
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Devices
• EPS (TTM): 10.60
• Shares Outstanding: 37,794,865
• 10 Day Avg. Volume: 107,903
• 30 Day Avg. Volume: 76,897
• PEG Ratio: 1.89
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.54
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 5.74
• Enterprise Value/Ebitda: 10.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: 2,613.00 ▲(16.91%Upside)

Brainsway's stock is bolstered by strong financial performance and technical indicators, suggesting robust growth and operational efficiency. The positive earnings call further enhances the outlook, despite high valuation concerns. The company is well-positioned for future growth, but investors should be aware of the high P/E ratio and overbought technical indicators.

Brainsway Business Overview & Revenue Model

Company Description

Brainsway (BWAY) is a medical technology company specializing in advanced non-invasive treatments for brain disorders. The company is renowned for its Deep Transcranial Magnetic Stimulation (Deep TMS) systems, which are designed to treat mental health conditions such as major depressive disorder and obsessive-compulsive disorder. Operating across the healthcare sector, Brainsway is committed to improving patient outcomes through innovative neurostimulation therapies.

How the Company Makes Money

Brainsway makes money primarily by selling and leasing its Deep TMS systems to healthcare providers, including hospitals and clinics. The company generates revenue through direct sales of its systems as well as through recurring income from leasing agreements and usage-based fees. Additionally, Brainsway may earn revenue from maintenance services and the sale of consumable items used in conjunction with its systems. Partnerships with healthcare institutions and collaborations with research organizations also play a role in expanding its market presence and enhancing its revenue streams.

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.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.46M	41.02M	31.79M	27.18M	29.66M	22.06M
Gross Profit	32.38M	30.58M	23.48M	20.05M	23.06M	17.00M
EBITDA	6.08M	5.36M	-2.56M	-11.45M	-4.67M	-3.46M
Net Income	3.92M	2.92M	-4.20M	-13.35M	-6.46M	-5.38M
Balance Sheet
Total Assets	100.20M	94.32M	62.97M	64.48M	75.73M	34.01M
Cash, Cash Equivalents and Short-Term Investments	71.60M	69.34M	45.98M	47.85M	57.35M	17.18M
Total Debt	5.57M	5.62M	471.00K	488.00K	754.00K	429.00K
Total Liabilities	36.45M	32.00M	21.39M	19.08M	18.41M	14.38M
Stockholders Equity	63.75M	62.31M	41.58M	45.40M	57.32M	19.63M
Cash Flow
Free Cash Flow	8.02M	6.50M	-1.10M	-7.82M	-1.35M	-3.91M
Operating Cash Flow	12.13M	10.30M	1.28M	-9.76M	884.00K	-1.44M
Investing Cash Flow	29.05M	30.31M	-37.41M	42.17M	-42.22M	-2.46M
Financing Cash Flow	18.10M	18.26M	-1.03M	-1.55M	41.52M	-1.03M

Brainsway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2235.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2235 is above the 20-day moving average (MA) of 2100.65, above the 50-day MA of 1902.78, and above the 200-day MA of 1813.01, indicating a bullish trend. The MACD of 99.51 indicates Negative momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 59.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:BWAY.

Brainsway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWAY	77 Outperform	835.64M	56.64	7.41%	―	25.65%	―
SOFW	58 Neutral	752.68M	―		―	17.69%	14.51%
Sector *	52 Neutral	$7.45B	0.30	-61.93%	2.28%	16.62%	1.04%