Sofwave (SOFW) AI Stock Analysis

• Market Cap: 707.81M
• Dividend Yield: N/A
• Average Volume (3M): 59.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 17.69%
• EPS Growth: 14.51%
• Country: IL
• Employees: 126
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Devices
• EPS (TTM): -11.50
• Shares Outstanding: 35,319,830
• 10 Day Avg. Volume: 55,697
• 30 Day Avg. Volume: 59,070
• PEG Ratio: -0.04
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.23
• Enterprise Value/Market Cap: 0.07
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: -6.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 2,182.00 ▲(3.90%Upside)

While Sofwave demonstrates strong revenue growth and technical indicators suggest bullish momentum, profitability issues and a negative P/E ratio present significant risks. The company needs to focus on improving its cash flow and operational efficiency to enhance future growth prospects.

Sofwave Business Overview & Revenue Model

Company Description

Sofwave Medical Ltd. develops an ultrasound technology for treating fine lines and wrinkles in Israel and internationally. It offers non-invasive skin treatment aesthetic medical devices to physicians. The company was incorporated in 2015 and is based in Yokne'am Illit, Israel.

How the Company Makes Money

Sofwave generates revenue primarily through the sale of its ultrasound-based devices and associated consumables to medical professionals, clinics, and aesthetic centers. The company also earns income from service agreements, training, and support packages offered to practitioners using their technology. Additionally, Sofwave may engage in strategic partnerships with distributors and healthcare providers to expand its market reach and enhance sales. Revenue is further supported by ongoing research and development efforts to innovate and introduce new products within the aesthetic treatment market.

Sofwave Financial Statement Overview

Summary

Sofwave exhibits strong revenue growth and maintains a solid balance sheet with low leverage. However, the company is facing profitability and cash flow challenges, which could hinder future growth potential. The focus should be on improving operational efficiency to turn losses into profits.

Income Statement

Sofwave has shown strong revenue growth with a TTM revenue of $63.14M, up from $59.65M in the previous year. The gross profit margin remains healthy at approximately 76.3% TTM. However, the net profit margin is negative due to ongoing losses, and the EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of approximately 57.8%. The debt-to-equity ratio is low at 0.06, indicating minimal leverage and potential for future borrowing. However, the company has been consistently operating at a net loss, which could affect future equity values.

Cash Flow

Sofwave's free cash flow remains negative at -$2.67M TTM, though improved from previous periods. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Despite these issues, the company has been able to manage capital expenditures effectively.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
63.14M	59.65M	50.31M	35.63M	21.84M	4.29M
	Gross Profit
48.14M	45.34M	37.48M	26.33M	16.24M	2.63M
	EBIT
-3.58M	-3.58M	-7.99M	-17.34M	-8.87M	-6.55M
	EBITDA
-2.24M	-2.19M	-6.61M	-16.97M	-6.43M	-11.32M
	Net Income Common Stockholders
-4.67M	-4.55M	-8.28M	-19.53M	-6.83M	-11.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.88M	21.62M	24.42M	32.01M	46.22M	2.64M
	Total Assets
42.05M	43.03M	43.54M	46.08M	60.77M	4.82M
	Total Debt
1.45M	1.40M	1.33M	1.92M	2.37M	78.00K
	Net Debt
-18.43M	-20.22M	-23.09M	-30.08M	-43.84M	-2.57M
	Total Liabilities
17.76M	18.50M	17.19M	13.74M	14.07M	3.29M
	Stockholders Equity
24.29M	24.53M	26.34M	32.34M	46.70M	1.53M
Cash Flow		Free Cash Flow
-2.67M	-2.67M	-6.71M	-11.14M	-2.92M	-5.07M
	Operating Cash Flow
-2.44M	-2.40M	-6.31M	-10.69M	-2.10M	-4.80M
	Investing Cash Flow
-227.00K	254.00K	409.00K	-260.00K	-982.00K	-263.00K
	Financing Cash Flow
-529.00K	-620.00K	-1.72M	-1.35M	46.64M	1.99M

Sofwave Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SOFW, the sentiment is Neutral. The current price of 2100 is above the 20-day moving average (MA) of 2093.30, above the 50-day MA of 1828.72, and above the 200-day MA of 1744.09, indicating a neutral trend. The MACD of 47.03 indicates Positive momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 34.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:SOFW.

Sofwave Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPNS	76 Outperform	$1.59B	22.01	16.09%	2.03%	3.84%	10.25%
SOFW	66 Neutral	707.81M	―		―	17.69%	14.51%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%