BrainsWay Ltd. (BWAY) AI Stock Analysis
BWAY AI stock analysis summary
AI ResearchBrainsWay Ltd. (BWAY) develops and commercializes noninvasive Deep Transcranial Magnetic Stimulation systems for psychiatric and neurological conditions. The company generated $60.7M in trailing twelve-month revenue with a 15.6% profit margin, supported by 35.4% year-over-year quarterly revenue expansion. As of June 30, 2026, BrainsWay holds $55.2M in net cash with a current ratio of 3.59.
- Market cap
- $460.5M
- Revenue (TTM)
- $60.7M
- P/E
- 49.7x fwd 17.9x
- 1Y return
- 43.0% S&P 500 16.8%
- Avg. target
- $19.27 68.4% vs last close
Bull case
- BrainsWay increased annual revenue by 27.3% in FY2025 to $52.2M, followed by 35.4% year-over-year revenue growth in the quarter ended June 30, 2026.
- Free cash flow expanded to $16.4M in FY2025, supporting a net cash position of $55.2M with low total debt of $7.1M.
- Analyst consensus projects 70.4% EPS growth to $0.31 for FY2026 and further EPS growth of 65.2% to $0.51 for the next fiscal year.
Bear case
- BrainsWay trades at a trailing P/E of 49.7x and an EV/EBITDA of 41.8x, well above the US-listed Healthcare peer medians of 24.6x and 12.0x.
- The stock closed at $11.44 on October 16, 2026, which is 17.7% below its 200-day moving average and down from its 52-week high of $17.40.
- The company has a relatively recent history of unprofitability, having generated net losses of -$13.3M in FY2022 and -$4.2M in FY2023.
What BrainsWay does
BrainsWay Ltd. develops and markets noninvasive neurostimulation treatments for mental health disorders across the United States, Europe, Israel, and internationally. Its core platform, Deep Transcranial Magnetic Stimulation (Deep TMS), is designed to treat major depressive disorders, anxious depression, obsessive-compulsive disorders, and smoking addiction. BrainsWay also addresses conditions including bipolar disorders, post-traumatic stress disorders, schizophrenia, Alzheimer's disease, autism, chronic pain, multiple sclerosis, post-stroke rehabilitation, and Parkinson's disease. Headquartered in Jerusalem, Israel, the company primarily serves doctors, hospitals, and medical centers specializing in psychiatry.
Growth and profitability
BrainsWay grew annual revenue from $29.7M in FY2021 to $52.2M in FY2025, delivering an 18.8% five-year revenue CAGR. After posting net losses of -$6.5M in FY2021, -$13.3M in FY2022, and -$4.2M in FY2023, the business turned profitable with net income of $2.9M in FY2024 and $7.6M in FY2025. Gross margin reached 75.4% in FY2025, while operating margin expanded to 8.3%. In the trailing twelve months ended June 30, 2026, revenue stood at $60.7M with EPS of $0.23, supported by quarterly revenue growth of 35.4% and quarterly earnings growth of 59.8%.
Balance sheet and cash flow
As of June 30, 2026, BrainsWay held $62.4M in cash and short-term investments against $7.1M in total debt, resulting in net cash of $55.2M. The company maintains liquidity with a current ratio of 3.59 and a debt-to-equity ratio of 0.09. In FY2025, operating cash flow reached $18.2M and free cash flow stood at $16.4M after capital expenditures of $1.8M. Over the past five years, the company reduced its share count by 39.0%.
Valuation and performance
At a share price of $11.44 and a market capitalization of $460.5M, BrainsWay trades at a trailing P/E of 49.7x, compared to 24.6x for the median of its US-listed Healthcare peers. Its forward P/E is 17.9x versus the peer median of 17.3x, while its enterprise value to EBITDA ratio is 41.8x compared to the peer median of 12.0x. Over the past year, BWAY gained 43.0%, outperforming the 16.8% return of the S&P 500 (SPY). Over five years, the stock returned 193.0% against 83.0% for the benchmark index.
What analysts expect
Wall Street coverage includes 3 Strong Buy recommendations, with no Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $19.27, representing a 68.4% premium over the last close of $11.44. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $69.2M and EPS of $0.31, representing 70.4% EPS growth. For next fiscal year, 3 analysts project revenue of $85.3M and EPS of $0.51. BrainsWay beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 10, 2026.
Key risks and what to watch
- Valuation multiples are elevated, as BrainsWay trades at a price-to-sales ratio of 7.6x compared to 4.1x for its peer median.
- Operating performance remains sensitive to overhead costs, having generated negative operating margins as steep as -46.7% in FY2022.
- Institutional ownership sits at 29.6%, which reflects a relatively narrow base of large institutional holders for a company with a $460.5M market cap.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this BWAY AI stock analysis
This page is an AI-written research summary of BrainsWay Ltd. (BWAY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: BWAY income statement, BWAY balance sheet, BWAY key metrics, BWAY analyst forecast, BWAY chart. See the BWAY stock overview for the latest quote and news.
BWAY AI stock analysis FAQ
What does BrainsWay Ltd. do?
BrainsWay Ltd. develops and commercializes noninvasive neurostimulation treatments using its Deep Transcranial Magnetic Stimulation (Deep TMS) technology. It targets psychiatric and neurological indications such as major depression, obsessive-compulsive disorders, and smoking addiction.
Is BrainsWay profitable?
Yes. BrainsWay generated net income of $7.6M in FY2025 and reported trailing twelve-month net earnings of $0.23 per share with a profit margin of 15.6%.
Does BrainsWay pay a dividend?
BrainsWay does not pay a dividend. The company directs its operating cash flow, which reached $18.2M in FY2025, toward research and development and capital expenditures.
What is the consensus analyst target for BWAY stock?
The 3 analysts covering BrainsWay give it a Strong Buy rating with a mean price target of $19.27, representing a 68.4% increase from its closing price of $11.44 on October 16, 2026.