Brainsway (BWAY) AI Stock Analysis

• Market Cap: 1.51B
• Dividend Yield: N/A
• Average Volume (3M): 85.46K
• Price to Earnings (P/E): 64.7
• Beta (1Y): <0.01
• Revenue Growth: 21.13%
• EPS Growth: 251.25%
• Country: IL
• Employees: 120
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 13.80
• Shares Outstanding: 39,169,373
• 10 Day Avg. Volume: 88,081
• 30 Day Avg. Volume: 85,462
• PEG Ratio: -0.33
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 3.88
• P/FCF Ratio: 24.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: 4,220.00 ▲(13.50% Upside)

Score is driven by a strong financial turnaround (profitability, cash generation, and low leverage) and an upbeat earnings call with raised guidance and strong demand signals. The main offsets are a demanding valuation (high P/E) and technically overbought momentum that increases near-term pullback risk.

Positive Factors

Strong cash generation & low leverage

Robust FCF conversion and very low leverage provide durable financial flexibility. This reduces reliance on external financing, funds product rollouts and minority investments, and gives the company a cash cushion to absorb cyclical stress or invest in growth without compromising the balance sheet.

Expanding installed base and system shipments

Rapid shipment growth and a >1,600 system installed base create a durable recurring-revenue platform. Larger installed footprint drives session revenue, clinician familiarity, referral flows and lower marginal customer acquisition costs, supporting sustainable revenue growth over time.

Regulatory approval and payer coverage expansion

FDA approval of an accelerated protocol combined with payer policy expansions (Optum/Premera) are structural enablers. Faster treatment protocols improve patient convenience and throughput; wider insurance coverage expands the addressable market and supports long-term adoption and utilization.

Negative Factors

Short track record of sustained profitability

The recent profitability inflection is meaningful but recent after multi-year losses. A limited track record raises execution risk: slower growth or margin pressure could revert results, testing management's ability to maintain operating leverage and capital allocation through a full cycle.

Rising operating expense base

Higher S&M and R&D outlays support growth and product development but raise the fixed cost base. If revenue growth decelerates, these elevated operating expenses could compress margins and delay achievement of targeted operating leverage, making profitability more sensitive to demand shocks.

Partner regulatory delay risk

A partner's delayed FDA clearance creates timing and revenue visibility risk for anticipated collaborative or complementary offerings. Such regulatory setbacks can postpone market expansion, reduce potential referral or bundled sales, and weaken near-term growth assumptions tied to partnerships.

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 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 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.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 3718.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 above the 20-day moving average (MA) of 3129.00, above the 50-day MA of 2848.26, and above the 200-day MA of 2293.53, indicating a bullish trend. The MACD of 246.76 indicates Negative momentum. The RSI at 81.89 is Negative, neither overbought nor oversold. The STOCH value of 87.48 is Negative, 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	1.51B	64.67	10.95%	―	21.13%	251.25%
SOFW	64 Neutral	1.27B	654.50	―	―	29.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%