Sofwave (SOFW) AI Stock Analysis

• Market Cap: ₪1.34B
• Dividend Yield: N/A
• Average Volume (3M): 26.78K
• Price to Earnings (P/E): 51.4
• Beta (1Y): 0.48
• Revenue Growth: 29.55%
• EPS Growth: N/A
• Country: IL
• Employees: 126
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 37.00
• Shares Outstanding: 36,111,660
• 10 Day Avg. Volume: 28,238
• 30 Day Avg. Volume: 26,779
• PEG Ratio: -0.22
• Price to Book (P/B): 9.34
• Price to Sales (P/S): 3.22
• P/FCF Ratio: 21.06
• 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: 69 Neutral
• Price Target: 4,373.00 ▲(56.18% Upside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is driven primarily by the sharp 2025 fundamental inflection (profitability and strong cash flow) supported by a low-debt balance sheet. Technicals add support via a clear uptrend, though momentum is nearing overbought levels. The key offset is valuation, with a very high P/E that leaves less room for execution missteps.

Positive Factors

Turnaround to Profitability

Sofwave’s 2025 swing to operating profit and positive net income indicates the business model can scale to profitability once installed-base and utilization reach critical mass. This reduces reliance on external capital and supports longer-term investment in sales, training and product support if sustained.

Negative Factors

Historic Profitability Volatility

The 2025 profit inflection follows several years of losses and negative operating cash flow, so the company’s earnings profile remains unproven across cycles. Reversion risk is meaningful if placements slow, pricing weakens, or consumable volumes decline, stressing the need for sustained execution.

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 b...

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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 b...

How the Company Makes Money

Sofwave primarily makes money by selling its Sofwave ultrasound aesthetic systems to physician practices and other professional aesthetic providers. In addition to upfront capital equipment sales, the company generates recurring revenue from proce...

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Sofwave primarily makes money by selling its Sofwave ultrasound aesthetic systems to physician practices and other professional aesthetic providers. In addition to upfront capital equipment sales, the company generates recurring revenue from proce...

Sofwave Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	94.86M	59.65M	50.31M	35.63M	21.84M
Gross Profit	70.27M	45.34M	37.48M	26.33M	16.24M
EBITDA	9.39M	-2.19M	-6.61M	-17.55M	-6.43M
Net Income	5.94M	-4.55M	-8.28M	-19.53M	-6.83M
Balance Sheet
Total Assets	55.78M	43.03M	43.54M	46.08M	60.77M
Cash, Cash Equivalents and Short-Term Investments	35.28M	21.62M	24.42M	32.01M	46.22M
Total Debt	1.12M	1.40M	1.33M	1.92M	2.37M
Total Liabilities	23.06M	18.50M	17.19M	13.74M	14.07M
Stockholders Equity	32.72M	24.53M	26.34M	32.34M	46.70M
Cash Flow
Free Cash Flow	14.51M	-2.67M	-6.71M	-11.14M	-2.92M
Operating Cash Flow	15.08M	-2.40M	-6.31M	-10.69M	-2.10M
Investing Cash Flow	-1.15M	254.00K	409.00K	-260.00K	-982.00K
Financing Cash Flow	-469.79K	-620.00K	-1.72M	-1.35M	46.64M

Sofwave Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2800.00
• 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 Positive. The current price of 2800 is below the 20-day moving average (MA) of 3759.00, below the 50-day MA of 3641.26, and below the 200-day MA of 2947.82, indicating a neutral trend. The MACD of 63.59 indicates Positive momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 20.67 is Neutral, 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	76 Outperform	₪1.72B	61.10	10.95%	―	21.13%	251.25%
SOFW	69 Neutral	₪1.34B	51.44	―	―	29.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%