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

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IL:SOFW

Sofwave

(SOFW)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
3,061.00
▲(0.20% Upside)
The overall stock score is primarily influenced by strong technical momentum, despite weak financial performance and valuation concerns. The company's revenue growth and low debt are positives, but profitability and cash flow issues weigh heavily on the score.

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

Sofwave Business Overview & Revenue Model

Company DescriptionSofwave (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 MoneySofwave 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 indicator, but negative net profit margins and declining free cash flow growth are concerning.
Income Statement
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue69.49M59.65M50.31M35.63M21.84M4.29M
Gross Profit52.85M45.34M37.48M26.33M16.24M2.63M
EBITDA1.11M-2.19M-6.61M-16.97M-6.43M-11.32M
Net Income-1.63M-4.55M-8.28M-19.53M-6.83M-11.69M
Balance Sheet
Total Assets44.88M43.03M43.54M46.08M60.77M4.82M
Cash, Cash Equivalents and Short-Term Investments23.50M21.62M24.42M32.01M46.22M2.64M
Total Debt1.45M1.40M1.33M1.92M2.37M78.00K
Total Liabilities18.32M18.50M17.19M13.74M14.07M3.29M
Stockholders Equity26.55M24.53M26.34M32.34M46.70M1.53M
Cash Flow
Free Cash Flow2.60M-2.67M-6.71M-11.14M-2.92M-5.07M
Operating Cash Flow2.85M-2.40M-6.31M-10.69M-2.10M-4.80M
Investing Cash Flow-354.00K254.00K409.00K-260.00K-982.00K-263.00K
Financing Cash Flow-292.00K-620.00K-1.72M-1.35M46.64M1.99M

Sofwave Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3055.00
Price Trends
50DMA
2786.52
Positive
100DMA
2506.29
Positive
200DMA
2090.80
Positive
Market Momentum
MACD
90.37
Negative
RSI
64.25
Neutral
STOCH
69.53
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 3055 is above the 20-day moving average (MA) of 2766.95, above the 50-day MA of 2786.52, and above the 200-day MA of 2090.80, indicating a bullish trend. The MACD of 90.37 indicates Negative momentum. The RSI at 64.25 is Neutral, neither overbought nor oversold. The STOCH value of 69.53 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
1.04B52.679.62%23.45%670.44%
55
Neutral
1.07B-163.6422.30%59.78%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:SOFW
Sofwave
2,979.00
1,075.00
56.46%
IL:BWAY
Brainsway
2,762.00
914.00
49.46%
IL:ILX
Ilex Medical
6,482.00
310.65
5.03%
IL:ALMD
Allmed Solution
32.00
-5.90
-15.57%
IL:EPIT
Epitomee Med
705.30
-442.70
-38.56%
IL:PULS
Pulsenmore
401.30
21.30
5.61%
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: Oct 22, 2025