(BWAY) Brainsway - Overview
Sector: Healthcare | Industry: Medical Devices | Exchange: NASDAQ (USA) | Market Cap: 605m USD | Total Return: 198.4% in 12m
Avg Turnover: 2.32M
Qual. Beats: 0
Rev. Trend: 99.5%
Qual. Beats: 4
Warnings
Beneish M-Score 0.31 > -1.5 - likely earnings manipulation
Altman Z'' -1.00 < 1.0 - financial distress zone
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind, Pullback 52w
BrainsWay Ltd. (BWAY) is an Israel-based medical technology company focused on the development and commercialization of noninvasive neurostimulation treatments. The firm utilizes its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) platform to target various psychiatric and neurological conditions, including major depressive disorder, obsessive-compulsive disorder, and smoking addiction. BrainsWay primarily markets its systems to private clinics, hospitals, and academic institutions.
Operating within the health care equipment sector, the company utilizes a business model centered on both the direct sale of hardware and recurring revenue streams from treatment-based leasing or service contracts. The neurostimulation market is characterized by high barriers to entry due to stringent regulatory approval processes and the requirement for clinical validation across diverse therapeutic indications. Investors may find additional data points on ValueRay useful for evaluating the companys market position.
- Deep TMS global expansion drives recurring revenue growth in mental health clinics
- FDA clearance for smoking addiction and OCD increases total addressable market
- Insurance reimbursement rate changes impact provider adoption of neurostimulation technology
- R&D investment for Alzheimer’s and Parkinson’s clinical trials affects long-term valuation
- Geopolitical stability in Israel influences operational continuity and supply chain logistics
| Net Income: 8.82m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 2.87 > 1.0 |
| NWC/Revenue: 97.96% < 20% (prev 156.0%; Δ -58.08% < -1%) |
| CFO/TA 0.12 > 3% & CFO 14.2m > Net Income 8.82m |
| Net Debt (-53.1m) to EBITDA (12.6m): -4.22 < 3 |
| Current Ratio: 3.34 > 1.5 & < 3 |
| Outstanding Shares: last quarter (19.1m) vs 12m ago -48.28% < -2% |
| Gross Margin: 75.51% > 18% (prev 0.75%; Δ 7.48k% > 0.5%) |
| Asset Turnover: 51.77% > 50% (prev 43.37%; Δ 8.40% > 0%) |
| Interest Coverage Ratio: 5.20 > 6 (EBITDA TTM 12.6m / Interest Expense TTM 2.11m) |
| A: 0.47 (Total Current Assets 78.6m - Total Current Liabilities 23.6m) / Total Assets 117.0m |
| B: -0.76 (Retained Earnings -88.5m / Total Assets 117.0m) |
| C: 0.10 (EBIT TTM 11.0m / Avg Total Assets 108.6m) |
| D: -2.19 (Book Value of Equity -90.3m / Total Liabilities 41.2m) |
| Altman-Z'' = -1.00 = CCC |
| DSRI: 0.84 (Receivables 7.53m/6.95m, Revenue 56.2m/43.5m) |
| GMI: 0.99 (GM 75.51% / 74.51%) |
| AQI: 6.60 (AQ_t 0.22 / AQ_t-1 0.03) |
| SGI: 1.29 (Revenue 56.2m / 43.5m) |
| TATA: -0.05 (NI 8.82m - CFO 14.2m) / TA 117.0m) |
| Beneish M = 0.31 (Cap -4..+1) = D |
As of May 27, 2026, the stock is trading at USD 15.89 with a total of 161,290 shares traded.
Over the past week, the price has changed by +6.79%,
over one month by -3.70%,
over three months by +35.78% and
over the past year by +198.40%.
Brainsway has received a consensus analysts rating of 4.75. Therefore, it is recommended to buy BWAY.
- StrongBuy: 3
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 16 | 0.7% |
P/E Trailing = 68.6364
P/E Forward = 71.9424
P/S = 10.757
P/B = 7.9787
Revenue TTM = 56.2m USD
EBIT TTM = 11.0m USD
EBITDA TTM = 12.6m USD
Long Term Debt = 5.60m USD (estimated: total debt 6.71m - short term 1.10m)
Short Term Debt = 1.10m USD (from shortTermDebt, last quarter)
Debt = 6.71m USD (from shortLongTermDebtTotal, last quarter) (leases 6.71m already included)
Net Debt = -53.1m USD (calculated: Debt 6.71m - CCE 59.8m)
Enterprise Value = 551.7m USD (604.8m + Debt 6.71m - CCE 59.8m)
Interest Coverage Ratio = 5.20 (Ebit TTM 11.0m / Interest Expense TTM 2.11m)
EV/FCF = 43.36x (Enterprise Value 551.7m / FCF TTM 12.7m)
FCF Yield = 2.31% (FCF TTM 12.7m / Enterprise Value 551.7m)
FCF Margin = 22.63% (FCF TTM 12.7m / Revenue TTM 56.2m)
Net Margin = 15.68% (Net Income TTM 8.82m / Revenue TTM 56.2m)
Gross Margin = 75.51% ((Revenue TTM 56.2m - Cost of Revenue TTM 13.8m) / Revenue TTM)
Gross Margin QoQ = 75.17% (prev 76.44%)
Tobins Q-Ratio = 4.72 (Enterprise Value 551.7m / Total Assets 117.0m)
Interest Expense / Debt = 31.43% (Interest Expense 2.11m / Debt 6.71m)
Taxrate = 4.98% (120k / 2.41m)
NOPAT = 10.4m (EBIT 11.0m * (1 - 4.98%))
Current Ratio = 3.34 (Total Current Assets 78.6m / Total Current Liabilities 23.6m)
Debt / Equity = 0.09 (Debt 6.71m / totalStockholderEquity, last quarter 75.8m)
Debt / EBITDA = -4.22 (Net Debt -53.1m / EBITDA 12.6m)
Debt / FCF = -4.17 (Net Debt -53.1m / FCF TTM 12.7m)
Total Stockholder Equity = 71.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.12% (Net Income 8.82m / Total Assets 117.0m)
RoE = 5.50% (Net Income TTM 8.82m / Total Stockholder Equity 160.3m)
RoCE = 6.61% (EBIT 11.0m / Capital Employed (Equity 160.3m + L.T.Debt 5.60m))
RoIC = 29.95% (NOPAT 10.4m / Invested Capital 34.8m)
WACC = 11.21% (E(604.8m)/V(611.5m) * Re(11.0%) + D(6.71m)/V(611.5m) * Rd(31.43%) * (1-Tc(0.05)))
Discount Rate = 11.0% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 11.11 | Cagr: -21.86%
[DCF] Terminal Value 69.31% ; FCFF base≈10.8m ; Y1≈12.4m ; Y5≈18.3m
[DCF] Fair Price = 5.89 (EV 182.7m - Net Debt -53.1m = Equity 235.8m / Shares 40.1m; r=11.21% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.54 | # QB: 0
Revenue Correlation: 99.50 | Revenue CAGR: 30.63% | SUE: 4.0 | # QB: 4
EPS current Quarter (2026-06-30): EPS=0.05 | Chg30d=-21.01% | Revisions=+43% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.06 | Chg30d=-30.80% | Revisions=+43% | Analysts=1
EPS current Year (2026-12-31): EPS=0.24 | Chg30d=-21.75% | Revisions=+43% | GrowthEPS=+33.3% | GrowthRev=+27.5%
EPS next Year (2027-12-31): EPS=0.45 | Chg30d=+0.00% | Revisions=+33% | GrowthEPS=+86.1% | GrowthRev=+22.6%
[Analyst] Revisions Ratio: +43%