BrainsWay Ltd. Fundamental Analysis (NASDAQ: BWAY)
BrainsWay Ltd. (NASDAQ: BWAY) shows moderate financial fundamentals with a PE ratio of 32.21, profit margin of 15.65%, and ROE of 12.80%. The company generates $0.1B in annual revenue with strong year-over-year growth of 37.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BWAY's fundamental strength across five key dimensions:
Efficiency Score
WeakBWAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateBWAY shows balanced valuation metrics.
Growth Score
ModerateBWAY shows steady but slowing expansion.
Financial Health Score
ExcellentBWAY maintains a strong and stable balance sheet.
Profitability Score
ModerateBWAY maintains healthy but balanced margins.
Key Financial Metrics
Is BWAY Expensive or Cheap?
P/E Ratio
BWAY trades at 32.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BWAY's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values BrainsWay Ltd. at 3.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 52.07 times EBITDA. This signals the market has high growth expectations.
How Well Does BWAY Make Money?
Net Profit Margin
For every $100 in sales, BrainsWay Ltd. keeps $15.65 as profit after all expenses.
Operating Margin
Core operations generate 12.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.80 in profit for every $100 of shareholder equity.
ROA
BrainsWay Ltd. generates $7.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BrainsWay Ltd. produces operating cash flow of $15.95M, showing steady but balanced cash generation.
Free Cash Flow
BrainsWay Ltd. produces free cash flow of $11.12M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.28 in free cash annually.
FCF Yield
BWAY converts 0.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How BWAY Stacks Against Its Sector Peers
| Metric | BWAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.21 | 30.97 | Neutral |
| ROE | 12.80% | 515.00% | Weak |
| Net Margin | 15.65% | 30203.00% | Weak |
| Debt/Equity | 0.09 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 3.59 | 5.71 | Strong Liquidity |
| ROA | 7.83% | -15.00% (disorted) | Weak |
BWAY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BrainsWay Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.67%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
190.20%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
837.69%
Industry Style: Defensive, Growth, Innovation
High Growth