Workflow
Brainsway Ltd. Sponsored ADR (BWAY) Soars to 52-Week High, Time to Cash Out?
BWAYBrainsway(BWAY) ZACKS·2025-01-22 15:15

Company Performance - Brainsway Ltd. Sponsored ADR (BWAY) shares have increased by 18.2% over the past month, reaching a new 52-week high of 11.09[1]Yeartodate,thestockhasgained17.211.09 [1] - Year-to-date, the stock has gained 17.2%, outperforming the Zacks Medical sector, which declined by 3.2%, and the Zacks Medical - Products industry, which returned 17.1% [1] Earnings and Revenue - Brainsway has consistently exceeded earnings expectations, reporting an EPS of 0.04 against a consensus estimate of 0.01initslastearningsreportonNovember12,2024,andbeatingrevenueestimatesby4.330.01 in its last earnings report on November 12, 2024, and beating revenue estimates by 4.33% [2] - For the current fiscal year, Brainsway is projected to earn 0.16 per share on revenues of 40.41million,withayearoveryearearningsgrowthof93.7540.41 million, with a year-over-year earnings growth of 93.75% [3] - The next fiscal year forecasts earnings of 0.21 per share on revenues of 46.38million,representingayearoveryearchangeof14.7846.38 million, representing a year-over-year change of 14.78% [3] Valuation Metrics - Brainsway has a Value Score of D, a Growth Score of A, and a Momentum Score of C, resulting in a VGM Score of B [6] - The stock trades at 71.3X current fiscal year EPS estimates, significantly higher than the peer industry average of 18.7X, while on a trailing cash flow basis, it trades at 5X compared to the peer group's average of 11.5X [6] Zacks Rank - Brainsway holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [7] - The combination of a Strong Buy rating and a VGM Score of B suggests potential for further stock price appreciation in the near term [8] Industry Comparison - The Medical - Products industry is performing well, ranking in the top 38% of all industries, indicating positive market conditions for both Brainsway and its peers [11] - ResMed Inc. (RMD), a competitor, has a Zacks Rank of 2 (Buy) and has also shown strong earnings performance, with a projected EPS of 9.35 on revenues of $5.1 billion for the current fiscal year [9][10]