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Brainsway Ltd (IL:BWAY)
:BWAY
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Brainsway (BWAY) AI Stock Analysis

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IL:BWAY

Brainsway

(OTC:BWAY)

Rating:69Neutral
Price Target:
2,191.00
▲(7.24%Upside)
Brainsway's overall stock score is supported by strong financial performance with significant improvements in revenue and profitability. The earnings call provided positive guidance despite higher operating expenses and geopolitical risks. Technical analysis indicates short-term bearish momentum, and valuation suggests the stock may be overvalued.

Brainsway (BWAY) vs. iShares MSCI Israel ETF (EIS)

Brainsway Business Overview & Revenue Model

Company DescriptionBrainsway (BWAY) is a medical technology company specialized in developing advanced non-invasive neurostimulation treatments for mental health and neurological disorders. Operating within the healthcare sector, Brainsway primarily focuses on its flagship product, Deep Transcranial Magnetic Stimulation (Deep TMS), which has been cleared by the FDA for the treatment of major depressive disorder, obsessive-compulsive disorder, and smoking cessation. The company's technology is designed to stimulate deep and broad areas of the brain, offering a new approach to addressing complex mental health conditions.
How the Company Makes MoneyBrainsway generates revenue primarily through the sale and leasing of its Deep TMS systems to healthcare providers, clinics, and hospitals. The company offers a capital sales model where institutions purchase the Deep TMS systems outright, and a leasing model where organizations can access the equipment through a subscription or rental agreement. Additionally, Brainsway earns income from ongoing treatment sessions, as healthcare providers utilize the systems to treat patients. Significant partnerships with medical institutions and continuous innovation in treatment protocols further contribute to its revenue streams, enhancing the adoption and utilization of its technology in various markets.

Brainsway Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 31.55%|
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue41.02M31.79M27.18M29.66M22.06M
Gross Profit30.58M23.48M20.05M23.06M17.00M
EBITDA5.36M-2.56M-11.45M-4.67M-3.46M
Net Income2.92M-4.20M-13.35M-6.46M-5.38M
Balance Sheet
Total Assets94.32M62.97M64.48M75.73M34.01M
Cash, Cash Equivalents and Short-Term Investments69.34M45.98M47.85M57.35M17.18M
Total Debt5.62M471.00K488.00K754.00K429.00K
Total Liabilities32.00M21.39M19.08M18.41M14.38M
Stockholders Equity62.31M41.58M45.40M57.32M19.63M
Cash Flow
Free Cash Flow6.50M-1.10M-7.82M-1.35M-3.91M
Operating Cash Flow10.30M1.28M-9.76M884.00K-1.44M
Investing Cash Flow30.31M-37.41M42.17M-42.22M-2.46M
Financing Cash Flow18.26M-1.03M-1.55M41.52M-1.03M

Brainsway Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2043.00
Price Trends
50DMA
2014.54
Negative
100DMA
1847.81
Positive
200DMA
1841.50
Positive
Market Momentum
MACD
-7.95
Positive
RSI
41.88
Neutral
STOCH
18.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BWAY, the sentiment is Neutral. The current price of 2043 is below the 20-day moving average (MA) of 2115.45, above the 50-day MA of 2014.54, and above the 200-day MA of 1841.50, indicating a neutral trend. The MACD of -7.95 indicates Positive momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 18.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
69
Neutral
$755.52M49.807.41%25.65%
65
Neutral
874.77M
17.69%14.51%
52
Neutral
$7.59B0.18-63.14%2.16%16.34%0.64%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:BWAY
Brainsway
2,043.00
633.00
44.89%
IL:SOFW
Sofwave
2,487.00
842.00
51.19%
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: Jul 25, 2025