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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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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
4,844.00
▲(73.00% 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
Sofwave’s ~75% gross margins indicate durable product-level economics and pricing power typical of medical-device platforms. High incremental margins on device and consumable sales support long-term profitability, fund R&D and sales investments, and insulate operating profits from moderate revenue variability.
Negative Factors
Uneven revenue growth
Revenue momentum has been inconsistent, with a near-flat year in 2025 followed by re-acceleration to ~8.7% TTM. Such uneven growth raises execution risk for scaling sales, makes demand forecasting harder, and means future revenue depends on sustaining adoption trends rather than proven, steady secular growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sofwave’s ~75% gross margins indicate durable product-level economics and pricing power typical of medical-device platforms. High incremental margins on device and consumable sales support long-term profitability, fund R&D and sales investments, and insulate operating profits from moderate revenue variability.
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
Strong multi-year turnaround to solid profitability and positive free cash flow, supported by high gross margins (~75%) and very low leverage (debt-to-equity ~0.04). Offsetting factors are uneven growth (2025 ~0.6% before improving to ~8.7% TTM) and less-than-perfect cash conversion efficiency despite strong absolute operating cash flow.
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue96.28M94.86M59.65M50.31M35.63M21.84M
Gross Profit72.22M70.27M45.34M37.48M26.33M16.24M
EBITDA11.62M9.39M-2.19M-6.61M-17.55M-6.43M
Net Income7.96M5.94M-4.55M-8.28M-19.53M-6.83M
Balance Sheet
Total Assets58.30M55.78M43.03M43.54M46.08M60.77M
Cash, Cash Equivalents and Short-Term Investments35.49M35.28M21.62M24.42M32.01M46.22M
Total Debt1.43M1.12M1.40M1.33M1.92M2.37M
Total Liabilities22.97M23.06M18.50M17.19M13.74M14.07M
Stockholders Equity35.33M32.72M24.53M26.34M32.34M46.70M
Cash Flow
Free Cash Flow14.54M14.51M-2.67M-6.71M-11.14M-2.92M
Operating Cash Flow15.26M15.08M-2.40M-6.31M-10.69M-2.10M
Investing Cash Flow-624.97K-1.15M254.00K409.00K-260.00K-982.00K
Financing Cash Flow39.68K-469.79K-620.00K-1.72M-1.35M46.64M

Sofwave Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2800.00
Price Trends
50DMA
4278.34
Positive
100DMA
4010.23
Positive
200DMA
3488.76
Positive
Market Momentum
MACD
-18.83
Negative
RSI
55.59
Neutral
STOCH
90.65
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 4120.75, below the 50-day MA of 4278.34, and below the 200-day MA of 3488.76, indicating a bullish trend. The MACD of -18.83 indicates Negative momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
₪1.55B62.6135.83%
70
Outperform
₪1.88B69.2210.95%16.36%87.37%
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
4,280.00
2,024.00
89.72%
IL:BWAY
Brainsway
4,750.00
2,529.00
113.87%
IL:ILX
Ilex Medical
4,902.00
-1,348.62
-21.58%
IL:ALMD
Allmed Solution
33.80
0.40
1.20%
IL:EPIT
Epitomee Med
417.90
-468.60
-52.86%
IL:PLSM
Pulsenmore
1,481.00
-533.79
-26.49%
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: May 09, 2026