Sofwave (SOFW) AI Stock Analysis

• Market Cap: 1.02B
• Dividend Yield: N/A
• Average Volume (3M): 26.78K
• Price to Earnings (P/E): 502.6
• Beta (1Y): 0.15
• Revenue Growth: 29.55%
• EPS Growth: N/A
• Country: IL
• Employees: 126
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 9.30
• Shares Outstanding: 35,840,250
• 10 Day Avg. Volume: 28,238
• 30 Day Avg. Volume: 26,779
• PEG Ratio: 0.69
• Price to Book (P/B): 5.90
• Price to Sales (P/S): 2.43
• P/FCF Ratio: -54.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 2,884.00 ▲(3.00% Upside)

Sofwave's overall stock score is primarily influenced by its strong financial performance, particularly in revenue growth and cash flow improvement. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential bearish momentum. The lack of profitability and absence of a dividend yield further weigh down the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing market demand and successful expansion, which can drive long-term business sustainability and market leadership.

Gross Profit Margin

A high gross profit margin suggests effective cost control and pricing power, supporting long-term profitability and competitive advantage.

Cash Flow Improvement

Significant cash flow improvement enhances financial flexibility, enabling strategic investments and debt reduction, bolstering long-term financial health.

Negative Factors

Profitability Challenges

Negative net profit margin indicates ongoing challenges in achieving profitability, which can hinder long-term financial stability and shareholder returns.

Return on Equity

Negative return on equity suggests inefficiencies in using shareholder capital, potentially impacting investor confidence and long-term growth prospects.

Low EBIT and EBITDA Margins

Low EBIT and EBITDA margins indicate operational inefficiencies, which can limit profitability and competitiveness in the long term.

Sofwave Business Overview & Revenue Model

Company Description

Sofwave (SOFW) is a medical technology company focused on developing non-invasive aesthetic solutions for skin rejuvenation and lifting. Operating primarily in the healthcare and cosmetic sectors, Sofwave specializes in its proprietary ultrasound technology that targets the mid-dermal layer of the skin, resulting in improved skin tone and texture. The company's core product offerings include the Sofwave Synchronous Ultrasound Parallel Beam Technology, which is designed for both dermatology and plastic surgery markets, delivering effective treatments with minimal downtime for patients.

How the Company Makes Money

Sofwave generates revenue primarily through the sale of its medical devices and related consumables to healthcare providers, including dermatologists and cosmetic surgeons. The company operates a direct sales model, often providing training and support to practitioners to ensure the effective use of their devices. Additionally, Sofwave may generate recurring revenue from service agreements and maintenance for their equipment. Partnerships with healthcare institutions and participation in industry conferences also enhance their market presence and can lead to increased sales opportunities, contributing to overall earnings.

Sofwave Financial Statement Overview

Summary

Sofwave shows positive revenue growth and a strong gross profit margin, but struggles with profitability and cash flow stability. The low debt profile is a positive, but negative net profit margins and declining free cash flow growth are concerning.

Income Statement

Sofwave has shown a positive revenue growth rate of 10.05% in the TTM, indicating a growing market presence. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 76.25%, suggesting efficient production processes, but the overall profitability is hindered by high operating expenses.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.06, indicating low leverage and reduced financial risk. However, the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

The cash flow statement shows a concerning decline in free cash flow growth, with a significant negative growth rate of -197.34% in the TTM. Despite this, the company maintains a positive free cash flow to net income ratio, indicating some ability to convert profits into cash. The operating cash flow to net income ratio is negative, reflecting challenges in cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.83M	59.65M	50.31M	35.63M	21.84M	4.29M
Gross Profit	94.90M	45.34M	37.48M	26.33M	16.24M	2.63M
EBITDA	8.98M	-2.19M	-6.61M	-17.55M	-6.43M	-11.32M
Net Income	3.00M	-4.55M	-8.28M	-19.53M	-6.83M	-11.69M
Balance Sheet
Total Assets	155.15M	43.03M	43.54M	46.08M	60.77M	4.82M
Cash, Cash Equivalents and Short-Term Investments	87.62M	21.62M	24.42M	32.01M	46.22M	2.64M
Total Debt	4.49M	1.40M	1.33M	1.92M	2.37M	78.00K
Total Liabilities	62.60M	18.50M	17.19M	13.74M	14.07M	3.29M
Stockholders Equity	92.55M	24.53M	26.34M	32.34M	46.70M	1.53M
Cash Flow
Free Cash Flow	11.09M	-2.67M	-6.71M	-11.14M	-2.92M	-5.07M
Operating Cash Flow	11.73M	-2.40M	-6.31M	-10.69M	-2.10M	-4.80M
Investing Cash Flow	-857.35K	254.00K	409.00K	-260.00K	-982.00K	-263.00K
Financing Cash Flow	-572.13K	-620.00K	-1.72M	-1.35M	46.64M	1.99M

Sofwave Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2800.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SOFW, the sentiment is Positive. The current price of 2800 is below the 20-day moving average (MA) of 2811.40, below the 50-day MA of 2906.92, and above the 200-day MA of 2340.11, indicating a neutral trend. The MACD of -26.93 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 86.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:SOFW.

Sofwave Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWAY	73 Outperform	$1.14B	52.16	10.95%	―	21.13%	251.25%
SOFW	56 Neutral	1.02B	502.58	―	―	29.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%