Brainsway Ltd (IL:BWAY)
TASE:BWAY
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Brainsway
(TASE:BWAY)
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Rating:70Outperform
Price Target:
4,730.00
▲(27.22% Upside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by improved financial performance (return to solid profitability and low leverage) and a strong earnings outlook supported by robust Q1 execution and positive clinical/payer momentum. These positives are tempered by weak near-term technical momentum and a high P/E valuation, plus cash-flow conversion and reimbursement/execution timing as ongoing risks.
Positive Factors
Sustained Profitability & Margin Strength
BrainsWay has converted to consistent profitability with very high gross margins (~75%) and recurring adjusted EBITDA growth. Durable margins and repeated profitable quarters support reinvestment in sales, R&D and clinical validation, improving long‑term scalability and ability to fund growth internally.
Negative Factors
Cash-Flow Conversion Weakness
Despite profitability, operating cash flow lagging net income and a material FCF decline indicate working-capital or timing challenges. Persistent conversion shortfalls can constrain organic investment, make guidance harder to achieve, and elevate sensitivity to quarter‑to‑quarter execution.
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Positive Factors
Negative Factors
Sustained Profitability & Margin Strength
BrainsWay has converted to consistent profitability with very high gross margins (~75%) and recurring adjusted EBITDA growth. Durable margins and repeated profitable quarters support reinvestment in sales, R&D and clinical validation, improving long‑term scalability and ability to fund growth internally.
Read all positive factors
Brainsway (BWAY) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪1.73B
Dividend YieldN/A
Average Volume (3M)85.46K
Price to Earnings (P/E)62.0
Beta (1Y)0.29
Revenue Growth16.36%
EPS Growth87.37%
CountryIL
Employees120
SectorGeneral
Sector StrengthN/A
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.23
Shares Outstanding40,129,410
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 Ratio23.00
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
Established in Jerusalem, Israel, in 2003, BrainsWay Ltd. specializes globally in creating and distributing advanced, non-invasive neurostimulation therapies designed to address a wide array of mental health and neurological conditions. The compan...
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:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a strong operational quarter with broad revenue and profitability gains, meaningful clinical and payer progress (notably SWIFT), a growing installed base and a solid cash position. Strategic investments (minority clinic stakes and Neurolief funding) and international momentum support long-term growth, but the company is making tradeoffs by increasing operating investments and remains partially dependent on payer coverage and milestone-driven commercialization paths. Overall, positives—robust top-line growth, margin expansion, RPO improvement and clinical validation—materially outweigh the risks, though execution and reimbursement timing will be critical to sustain momentum.Positive Updates
Strong Revenue Growth
Revenue of $15.5M in Q1 2026, up 35% year-over-year from $11.5M, driven by core business execution and expanded market penetration.
Negative Updates
Rising Operating Expenses
Operating investments increased: sales & marketing to $4.9M (up 16.7% vs. $4.2M), R&D to $2.8M (up 21.7% vs. $2.3M), and general & administrative to $1.8M (up 20% vs. $1.5M). These expense increases reflect targeted expansion but temper near-term operating leverage.
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Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue of $15.5M in Q1 2026, up 35% year-over-year from $11.5M, driven by core business execution and expanded market penetration.
Read all positive updates
Company Guidance
Management guided 2026 revenue of $66–$68 million (up 27%–30% year‑over‑year), operating income of 13%–14% of revenue, and adjusted EBITDA of $12–$14 million (an anticipated increase of ~86%–100% versus 2025). That outlook builds on a strong Q1 start — revenue $15.5M (up 35% YoY), net income $2.3M (over 100% increase), adjusted EBITDA $2.8M (11th consecutive profitable quarter), 117 systems placed in Q1 bringing the installed base to ~1,820, remaining performance obligations of $75M (up 25% YoY), and cash & equivalents of $58.9M — giving the company balance‑sheet flexibility to fund strategic investments.Brainsway Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.53M | 56.53M | 41.02M | 31.79M | 27.18M | 29.66M |
| Gross Profit | 45.70M | 42.63M | 30.58M | 23.48M | 20.05M | 23.06M |
| EBITDA | 7.29M | 6.34M | 5.36M | -2.56M | -11.45M | -4.67M |
| Net Income | 8.82M | 8.26M | 2.92M | -4.20M | -13.35M | -6.46M |
Balance Sheet | ||||||
| Total Assets | 117.00M | 112.94M | 94.32M | 62.97M | 64.48M | 75.73M |
| Cash, Cash Equivalents and Short-Term Investments | 59.77M | 69.13M | 69.34M | 45.98M | 47.85M | 57.35M |
| Total Debt | 6.71M | 6.82M | 5.62M | 471.00K | 488.00K | 754.00K |
| Total Liabilities | 41.20M | 34.67M | 32.00M | 21.39M | 19.08M | 18.41M |
| Stockholders Equity | 75.80M | 73.24M | 62.31M | 41.58M | 45.40M | 57.32M |
Cash Flow | ||||||
| Free Cash Flow | 11.20M | 16.27M | 6.50M | -1.10M | -7.82M | -1.35M |
| Operating Cash Flow | 13.15M | 18.02M | 10.30M | 1.28M | -9.76M | 884.00K |
| Investing Cash Flow | -24.85M | -17.49M | 30.31M | -37.41M | 42.17M | -42.22M |
| Financing Cash Flow | -2.36M | -2.21M | 18.26M | -1.03M | -1.55M | 41.52M |
Brainsway Technical Analysis
Positive
3718.00
Price Trends
4536.54
Negative
4208.19
Positive
3497.54
Positive
Market Momentum
-88.37
Negative
48.18
Neutral
64.93
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 3718 is below the 20-day moving average (MA) of 4295.90, below the 50-day MA of 4536.54, and above the 200-day MA of 3497.54, indicating a neutral trend. The MACD of -88.37 indicates Negative momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 64.93 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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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.