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Brainsway (IL:BWAY)
:BWAY

Brainsway (BWAY) AI Stock Analysis

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Brainsway

(OTC:BWAY)

Rating:77Outperform
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 (BWAY) vs. iShares MSCI Israel ETF (EIS)

Brainsway Business Overview & Revenue Model

Company DescriptionBrainsway (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 MoneyBrainsway 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 Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 43.92%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
BrainsWay's earnings call highlighted strong revenue growth and an increase in system shipments, alongside advancements in clinical trials and positive cash flow. However, these positives were countered by increased operating expenses and ongoing monitoring of geopolitical and tariff risks.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
BrainsWay reported $11.5 million in revenue for Q1 2025, marking a 27% year-over-year increase.
Increase in Deep TMS System Shipments
The company shipped 81 Deep TMS systems, a 42% increase compared to the first quarter of 2024.
Positive Cash Flow and Strong Gross Margin
The company reported a gross margin of 75% and positive cash flow from operations.
Expansion in OCD Treatment
OCD coils shipped totaled 57, bringing the global installed base to nearly 850.
Advancements in Clinical Trials
The company is advancing U.S. clinical trials for accelerated treatment protocols and working on data for PTSD and adolescent MDD treatments.
Negative Updates
Increased Operating Expenses
Sales and marketing expenses increased to $4.2 million, and R&D expenses rose to $2.3 million compared to the first quarter of 2024.
Potential Geopolitical and Tariff Risks
BrainsWay is actively monitoring potential impacts from geopolitical changes and tariff policies, though no immediate effects are anticipated.
Company Guidance
During BrainsWay's first quarter 2025 earnings call, significant guidance was provided highlighting the company's robust financial performance and strategic focus. The company reported $11.5 million in revenue, marking a 27% year-over-year increase, and shipped 81 Deep TMS systems, a 42% increase from the previous year. Gross margins remained strong at 75%, and operating income rose to $576,000, with adjusted EBITDA reaching $1.3 million. The company reiterated its full-year 2025 revenue guidance of $49 million to $51 million, representing a 20% to 24% growth over 2024. They anticipate generating an operating income of 3% to 4% and adjusted EBITDA margin of 11% to 12% for the year. BrainsWay emphasized its strategic initiatives around market expansion, particularly for its Deep TMS systems in treating OCD and anxious depression, and is advancing clinical trials for new treatment protocols, including an accelerated protocol for major depressive disorder. The company is also exploring opportunities with psychedelic treatments and expects to submit trial data to the FDA by the end of the year. Despite monitoring geopolitical and tariff impacts, BrainsWay does not foresee material adverse effects on its gross margin in the current year.

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
80
Positive
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
75
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue43.46M41.02M31.79M27.18M29.66M22.06M
Gross Profit32.38M30.58M23.48M20.05M23.06M17.00M
EBITDA6.08M5.36M-2.56M-11.45M-4.67M-3.46M
Net Income3.92M2.92M-4.20M-13.35M-6.46M-5.38M
Balance Sheet
Total Assets100.20M94.32M62.97M64.48M75.73M34.01M
Cash, Cash Equivalents and Short-Term Investments71.60M69.34M45.98M47.85M57.35M17.18M
Total Debt5.57M5.62M471.00K488.00K754.00K429.00K
Total Liabilities36.45M32.00M21.39M19.08M18.41M14.38M
Stockholders Equity63.75M62.31M41.58M45.40M57.32M19.63M
Cash Flow
Free Cash Flow8.02M6.50M-1.10M-7.82M-1.35M-3.91M
Operating Cash Flow12.13M10.30M1.28M-9.76M884.00K-1.44M
Investing Cash Flow29.05M30.31M-37.41M42.17M-42.22M-2.46M
Financing Cash Flow18.10M18.26M-1.03M-1.55M41.52M-1.03M

Brainsway Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2235.00
Price Trends
50DMA
1902.78
Positive
100DMA
1828.78
Positive
200DMA
1813.01
Positive
Market Momentum
MACD
99.51
Negative
RSI
65.38
Neutral
STOCH
59.16
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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
835.64M56.647.41%25.65%
58
Neutral
752.68M
17.69%14.51%
52
Neutral
$7.45B0.30-61.93%2.28%16.62%1.04%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:BWAY
Brainsway
2,235.00
1,101.00
97.09%
IL:SOFW
Sofwave
2,370.00
639.00
36.92%
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.Date of analysis: Jun 30, 2025