Sofwave Medical Ltd. (IL:SOFW)
TASE:SOFW
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Sofwave
(TASE:SOFW)
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Rating:78Outperform
Price Target:
4,706.00
▲(68.07% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by the company’s improved financial performance (profitability and strong free cash flow with low leverage) and strong technical uptrend. Valuation is reasonable but not particularly supportive due to the lack of a dividend and dependence on sustained growth and earnings execution.
Positive Factors
High gross margins and operating profitability
Sustained high gross margins (~75%) and positive operating/net margins create structural profitability that supports reinvestment in R&D, sales and service. Margins cushion the business through demand variability, enable scalable unit economics for consumables and improve long-term free cash flow resilience.
Negative Factors
Uneven revenue growth and normalization risk
Volatile year-to-year revenue growth undermines predictability for capacity planning and recurring revenue expansion. A sharp slowdown in 2025 followed by partial re-acceleration means sustained top-line momentum is not yet proven, increasing execution risk for multi-quarter targets.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and operating profitability
Sustained high gross margins (~75%) and positive operating/net margins create structural profitability that supports reinvestment in R&D, sales and service. Margins cushion the business through demand variability, enable scalable unit economics for consumables and improve long-term free cash flow resilience.
Read all positive factors
Sofwave (SOFW) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪1.50B
Dividend YieldN/A
Average Volume (3M)26.78K
Price to Earnings (P/E)63.3
Beta (1Y)0.62
Revenue Growth35.83%
EPS GrowthN/A
CountryIL
Employees126
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.23
Shares Outstanding36,295,260
10 Day Avg. Volume28,238
30 Day Avg. Volume26,779
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)9.34
Price to Sales (P/S)3.22
P/FCF Ratio21.06
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
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
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 96.28M | 94.86M | 59.65M | 50.31M | 35.63M | 21.84M |
| Gross Profit | 72.22M | 70.27M | 45.34M | 37.48M | 26.33M | 16.24M |
| EBITDA | 11.62M | 9.39M | -2.19M | -6.61M | -17.55M | -6.43M |
| Net Income | 7.96M | 5.94M | -4.55M | -8.28M | -19.53M | -6.83M |
Balance Sheet | ||||||
| Total Assets | 58.30M | 55.78M | 43.03M | 43.54M | 46.08M | 60.77M |
| Cash, Cash Equivalents and Short-Term Investments | 35.49M | 35.28M | 21.62M | 24.42M | 32.01M | 46.22M |
| Total Debt | 1.44M | 1.12M | 1.40M | 1.33M | 1.92M | 2.37M |
| Total Liabilities | 22.97M | 23.06M | 18.50M | 17.19M | 13.74M | 14.07M |
| Stockholders Equity | 35.33M | 32.72M | 24.53M | 26.34M | 32.34M | 46.70M |
Cash Flow | ||||||
| Free Cash Flow | 14.54M | 14.51M | -2.67M | -6.71M | -11.14M | -2.92M |
| Operating Cash Flow | 15.26M | 15.08M | -2.40M | -6.31M | -10.69M | -2.10M |
| Investing Cash Flow | -624.97K | -1.15M | 254.00K | 409.00K | -260.00K | -982.00K |
| Financing Cash Flow | 39.68K | -469.79K | -620.00K | -1.72M | -1.35M | 46.64M |
Sofwave Technical Analysis
Neutral
2800.00
Price Trends
4270.12
Negative
3955.69
Positive
3424.26
Positive
Market Momentum
-58.94
Positive
46.94
Neutral
57.67
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 2800 is below the 20-day moving average (MA) of 4217.30, below the 50-day MA of 4270.12, and below the 200-day MA of 3424.26, indicating a neutral trend. The MACD of -58.94 indicates Positive momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 57.67 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
UnderperformOutperform
Sector (51)
IL:SOFW
Sofwave
4,128.00
2,163.00
110.08%
IL:BWAY
Brainsway
4,300.00
2,354.00
120.97%
IL:ILX
Ilex Medical
4,835.00
-1,308.31
-21.30%
IL:ALMD
Allmed Solution
33.50
3.60
12.04%
IL:EPIT
Epitomee Med
673.60
-126.00
-15.76%
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.