Brainsway Ltd. (BWAY) Stock Analysis
Brainsway Ltd.
▾ What's in the 37/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.
How to read BWAY
We are not publishing an intrinsic value for this one — the section below says exactly why. Everything on this page that comes straight from the filings and the tape is still here; treat the missing valuation as a known gap, not as a verdict on the business.
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Reported earnings & margins ↓
What the company actually reported — unaffected by the valuation being held.
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Balance sheet & book value ↓
Assets, liabilities and equity as filed.
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Who's selling & betting against it ↓
Insider and short-interest behaviour needs no valuation model.
BWAY's SEC filings give us limited machine-readable financials — common for some foreign or newly-listed filers that report under IFRS or file abbreviated statements. We can't run a full valuation on a partial dataset.
What to use instead: What we have parsed is shown below. As more complete filings arrive (or IFRS support lands), the valuation will populate.
How to read a company this small
This is a clinical-stage biotech with little or no revenue. Standard DCF requires future cash flows to discount — there's nothing to discount yet. The value is entirely in the drug pipeline and the probability that it works.
- Drug pipeline — phase of each candidate (Phase I → II → III → FDA approval); each phase has historical success probabilities
- Total Addressable Market (TAM) of the lead indication — bigger market = bigger payoff if approved
- Cash runway — months of cash left at current burn rate before they need to raise more (and dilute shareholders)
- Strategic partnerships — Big Pharma collaborations validate the science and bring milestone payments
- Patent / exclusivity timeline — how long until generics if approved
- Insider holdings + management track record — biotech execs with prior wins are a real signal
P/E, P/B, EV/Sales, ROE — meaningless when there's no revenue or earnings. DCF outputs are nonsense.
ClinicalTrials.gov for trial status. The 10-K's "Pipeline" section. Recent press releases on Phase II/III readouts. Conferences like JPM Healthcare or ASCO.
Classified as Clinical-Stage Biotech (confidence 85%). Disagree? An admin can override via the post edit screen.
How does BWAY stack up against its closest peers?
We take the 8 same-industry companies most similar to BWAY (similar size) and check what investors are paying for each dollar of their revenue (or profits). If BWAY is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
1.7x / 6.2x / 17.0x |
| EV / Gross ProfitEV / Gross Profit — Enterprise value divided by gross profit — the multiple paid for what each dollar of sales contributes after direct costs. Why it matters: More refined than EV/Sales for high-margin businesses (software, marketplaces) where gross margin is the real economic engine. Reference: 8–15x for SaaS · 15–25x for hypergrowth software · >30x demanding Full explanation → |
2.2x / 4.1x / 8.1x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| TCMD | TACTILE SYSTEMS TECHNOLOGY INC | Medical Devices | $555M | 1.7x | 2.2x | 19.0x | 5.6% |
| NPCE | NeuroPace Inc | Medical Devices | $564M | 6.2x | 8.1x | — | 3.1% |
| SIBN | SI-BONE, Inc. | Medical Devices | $625M | 3.3x | 4.1x | — | 8.4% |
| SGP | SpyGlass Pharma, Inc. | Medical Devices | $644M | — | — | — | — |
| OFIX | Orthofix Medical Inc. | Medical Devices | $375M | 0.6x | 0.9x | — | 62.1% |
| SSII | SS Innovations International, Inc. | Medical Devices | $789M | 18.6x | 40.3x | — | 2.4% |
| ZJYL | Jin Medical International Ltd. | Medical Devices | $351M | 17.0x | 58.0x | 576.6x | 0.3% |
| SI | SHOULDER INNOVATIONS, INC. | Medical Devices | $305M | 6.8x | 8.8x | — | 32.7% |
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
The Z-score needs working capital, retained earnings, EBIT, sales and total assets from the latest balance sheet, and at least one of those isn't reported in machine-readable form here — common for foreign private issuers. We leave it blank rather than compute a distress verdict from an estimated input. It doesn't affect the reported figures in the financial tables below.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
The F-score compares two consecutive years of income, cash-flow and balance-sheet data. We have 5 years of income data for this filer, but no machine-readable cash-flow statement — so several of the nine checks have no input at all. We show nothing rather than score a partial year against itself. The reported figures in the financial tables below are unaffected.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for Brainsway Ltd. because the company exhibits negative free cash flowFree Cash Flow (FCF) — Operating cash flow minus capital spending: cash left after a company covers operating costs, taxes and interest and reinvests in the business — but BEFORE repaying debt principal or paying dividends. The cash actually available to investors.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation →, as indicated by the 'FCF negative' health signal. This suggests the company is in a growth or re-investment phase, burning cash rather than generating it consistently. Investors are likely betting on the future potential of its medical device pipeline and market adoption of its Deep TMS technology. The market may be assigning value to the potential for regulatory approvals and broader insurance coverage for new indications, which is not captured in a backward-looking cash flow model. The #1 quantifiable risk is the continued negative free cash flow, which could necessitate further capital raises.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation →, moving beyond the 'FCF negative' status, by significantly increasing Deep TMS system sales and utilization.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation → negative' health signal implies continued cash burn, which, if sustained, will necessitate further dilutive equity financing or hinder growth initiatives.
- Reported increase in installed Deep TMS systems
- Positive clinical trial results for new indications
- Expansion of insurance coverage for Deep TMS treatments
The trend, in plain numbers (FY2023 → FY2024, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Swung to a profit of $2.9M (from a loss the prior year).
Nothing was clearly worsening year-over-year.
Management & Leadership
Yaron Silberman serves as the Chief Executive Officer of BrainsWay Ltd., having taken the helm in recent years. Hadar Levy is the Chief Financial Officer. The company was founded with a focus on non-invasive brain stimulation.
What They Make
BrainsWay Ltd. develops and sells medical devices for non-invasive brain stimulation, primarily using its Deep Transcranial Magnetic Stimulation (Deep TMS) technology to treat mental health disorders. Its products are purchased by healthcare providers and clinics.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
The market is pricing BrainsWay based on expectations for future revenue growth and the potential for its Deep TMS technology to gain wider adoption and new indications, rather than current profitability, as evidenced by 'Net income POSITIVE latest (profitable 1/5 yrs)'. The 'FCFFree Cash Flow (FCF) — Operating cash flow minus capital spending: cash left after a company covers operating costs, taxes and interest and reinvests in the business — but BEFORE repaying debt principal or paying dividends. The cash actually available to investors.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation → negative' flag indicates the company is still investing heavily. The market may be assigning value to the potential for new clinical trial successes and expanded market access, which are not in the model.
Business Model & Valuation
How They Make Money
Growth / Revenue DCF
No cash flow statement data available - using revenue/margin growth model as fallback.
Show advanced inputs
| Revenue Growth | 15.0% |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Net income has been positive in 1 out of the last 5 years, indicating an erratic path to profitability.
Geography & Markets
BrainsWay Ltd. is headquartered in Israel but has a significant presence in the United States, where its Deep TMS devices are FDA-cleared. Exact geographic revenue mix is not available from current data sources.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)11.5OversoldHeavily sold off recently — sometimes a bounce setup, sometimes a falling knife.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (4 notes — click to expand/collapse)
Guardrail Notes (4)
- FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.
- INVARIANT: weighted IV is non-positive. Model may not be appropriate.
- Model implies no positive equity value under these assumptions. Valuation is speculative/low-confidence.
- Illiquidity discount 7% applied (small/micro-cap — harder to exit, demand a margin).
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Brainsway Ltd.'s SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2024 | — | 2.9M | $0.07 |
| 2023 | — | -4.2M | $-0.11 |
| 2022 | — | -13.3M | $-0.34 |
| 2021 | — | -6.5M | $-0.16 |
| 2020 | — | -5.4M | $-0.14 |
Balance Sheet
| Total Assets | 94.3M |
| Total Liabilities | — |
| Equity | — |
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