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Sofwave Medical Ltd. (IL:SOFW)
TASE:SOFW
Israel Market
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Sofwave (SOFW) AI Stock Analysis

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IL:SOFW

Sofwave

(TASE:SOFW)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
4,174.00
▲(8.42% Upside)
Action:Downgraded
Date:08/07/26
The score is supported primarily by improved fundamentals (return to positive margins and free cash flow) and a very conservatively levered balance sheet. Offsetting this, technical indicators point to a current downtrend, and valuation is stretched (P/E ~58) without dividend support.
Positive Factors
High gross margins and return to profitability
TTM gross margin near 75% and recent positive operating and net margins indicate durable unit economics and pricing power in a device-plus-consumable model. Strong gross margins support reinvestment in training, service and go-to-market, helping sustain profits through growth phases.
Negative Factors
Prior multi-year losses and cash-burn history
Historical multi-year losses and past cash burn create execution risk: if growth slows or utilization dips the company could revert to negative margins. Management must sustain margin discipline and stable cash conversion to avoid recurrence of prior loss periods.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and return to profitability
TTM gross margin near 75% and recent positive operating and net margins indicate durable unit economics and pricing power in a device-plus-consumable model. Strong gross margins support reinvestment in training, service and go-to-market, helping sustain profits through growth phases.
Read all positive factors

Sofwave (SOFW) vs. iShares MSCI Israel ETF (EIS)

Sofwave Business Overview & Revenue Model

Company Description
Founded in 2015, Sofwave Medical Ltd. is an Israeli company dedicated to developing cutting-edge ultrasound technology. This technology is employed for the non-invasive treatment of fine lines and wrinkles, with the company's reach extending to ph...
How the Company Makes Money
Sofwave primarily makes money by selling its energy-based aesthetic device platform and related consumables/services to medical practices and other clinical customers. Key revenue streams typically include: (1) capital equipment sales (one-time sa...

Sofwave Financial Statement Overview

Summary
Financial results show a meaningful inflection: TTM revenue is ~104.8M with ~75% gross margin and positive profitability (~10% EBIT; ~8% net). Balance sheet strength is a standout with very low leverage (debt-to-equity ~0.04) and improved ROE (~26.7%). Cash flow has turned positive (TTM OCF ~15.6M; FCF ~14.8M) but prior multi-year losses/cash burn and some cash-conversion volatility keep the score below top-tier.
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue104.85M94.86M59.65M50.31M35.63M21.84M
Gross Profit78.97M70.27M45.34M37.48M26.33M16.24M
EBITDA12.28M9.39M-2.19M-6.61M-17.55M-6.43M
Net Income8.92M5.94M-4.55M-8.28M-19.53M-6.83M
Balance Sheet
Total Assets61.72M55.78M43.03M43.54M46.08M60.77M
Cash, Cash Equivalents and Short-Term Investments38.57M35.28M21.62M24.42M32.01M46.22M
Total Debt1.42M1.12M1.40M1.33M1.92M2.37M
Total Liabilities23.95M23.06M18.50M17.19M13.74M14.07M
Stockholders Equity37.77M32.72M24.53M26.34M32.34M46.70M
Cash Flow
Free Cash Flow14.81M14.51M-2.67M-6.71M-11.14M-2.92M
Operating Cash Flow15.61M15.08M-2.40M-6.31M-10.69M-2.10M
Investing Cash Flow-10.98M-1.15M254.00K409.00K-260.00K-982.00K
Financing Cash Flow20.23K-469.79K-620.00K-1.72M-1.35M46.64M

Sofwave Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3850.00
Price Trends
50DMA
4126.78
Negative
100DMA
4153.30
Negative
200DMA
3672.26
Negative
Market Momentum
MACD
-129.94
Positive
RSI
31.95
Neutral
STOCH
15.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SOFW, the sentiment is Negative. The current price of 3850 is below the 20-day moving average (MA) of 4062.65, below the 50-day MA of 4126.78, and above the 200-day MA of 3672.26, indicating a bearish trend. The MACD of -129.94 indicates Positive momentum. The RSI at 31.95 is Neutral, neither overbought nor oversold. The STOCH value of 15.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:SOFW.

Sofwave Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
₪1.84B68.2010.95%16.36%87.37%
65
Neutral
₪1.32B48.1730.12%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:SOFW
Sofwave
3,611.00
765.00
26.88%
IL:BWAY
Brainsway
4,700.00
2,480.00
111.71%
IL:ILX
Ilex Medical
5,172.00
-642.64
-11.05%
IL:ALMD
Allmed Solution
29.40
-2.70
-8.41%
IL:EPIT
Epitomee Med
362.70
-531.90
-59.46%
IL:PLSM
Pulsenmore
883.00
-1,625.48
-64.80%
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: Aug 07, 2026