Sofwave (SOFW) AI Stock Analysis

6 Followers

Sofwave

(TASE:SOFW)

Select Model

Rating:72Outperform

Price Target:ILA 4,315.00▲(23.43% Upside)

Action:reiterated

Date:11/10/26

The overall score of 72 is driven primarily by Sofwave's exceptional financial performance, characterized by a powerful pivot to high-growth profitability and a pristine, debt-free balance sheet. This strength is tempered by a premium valuation, which leaves little room for error, and a technical picture that, while positive in the short-term, shows the stock still battling its 200-day moving average.

Positive Factors

Revenue and Profitability TurnaroundStrong revenue expansion combined with a move into operating profitability indicates meaningful commercial progress and improving operating leverage. If sustained, this larger revenue base and high gross-margin profile can support reinvestment, strengthen market presence, and improve earnings resilience over the next several quarters.

Negative Factors

Recent Profitability Is Not Yet Proven Through CyclesThe profitability improvement is encouraging, but its short history makes durability an important execution risk. Sofwave must sustain demand growth and control costs after several loss-making years; any slowdown or expense increase could quickly weaken the newly established earnings profile.

Sofwave (SOFW) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 1.27B
Dividend Yield: ―
Average Volume (3M): 96.87K
Price to Earnings (P/E): 31.5
Beta (1Y): 0.62
Revenue Growth: 25.84%
EPS Growth: 1717.73%
Country: Israel
Employees: 151
Sector: General
Sector Strength: 55
Industry: Medical - Devices

Sofwave Business Overview & Revenue Model

Company Description

Founded in 2015, Sofwave Medical Ltd. is an Israeli company dedicated to developing cutting-edge ultrasound technology. This technology is employed for the non-invasive treatment of fine lines and wrinkles, with the company's reach extending to physi...

Sofwave Financial Statement Overview

Summary

Sofwave's financial health is excellent, marked by a 59% revenue surge to $111.9M and a successful swing to a 10.7% net margin. The balance sheet is a fortress with negligible debt and a stellar 32.4% return on equity, while cash flow generation is robust, with free cash flow covering 95% of net income. The primary risk is the sustainability of this newly achieved high-growth profitability.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	111.91M	94.86M	59.65M	50.31M	35.63M	21.84M
Gross Profit	85.01M	70.27M	45.34M	37.48M	26.33M	16.24M
EBITDA	15.70M	9.39M	-2.19M	-6.61M	-17.55M	-6.43M
Net Income	12.02M	5.94M	-4.55M	-8.28M	-19.53M	-6.83M
Balance Sheet
Total Assets	65.99M	55.78M	43.03M	43.54M	46.08M	60.77M
Cash, Cash Equivalents and Short-Term Investments	30.88M	35.28M	21.62M	24.42M	32.01M	46.22M
Total Debt	1.25M	1.12M	1.40M	1.33M	1.92M	2.37M
Total Liabilities	23.37M	23.06M	18.50M	17.19M	13.74M	14.07M
Stockholders Equity	42.62M	32.72M	24.53M	26.34M	32.34M	46.70M
Cash Flow
Free Cash Flow	14.92M	14.51M	-2.67M	-6.71M	-11.14M	-2.92M
Operating Cash Flow	15.69M	15.08M	-2.40M	-6.31M	-10.69M	-2.10M
Investing Cash Flow	-10.74M	-1.15M	254.00K	409.00K	-260.00K	-982.00K
Financing Cash Flow	-77.98K	-469.79K	-620.00K	-1.72M	-1.35M	46.64M

Sofwave Technical Analysis

Technical Analysis SentimentNegative

Last Price3496.00

Price Trends

50DMA3451.30Positive

100DMA3714.79Negative

200DMA3829.88Negative

Market Momentum

MACD61.73Positive

RSI47.15Neutral

STOCH30.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SOFW, the sentiment is Negative. The current price of 3496.00 is below the 20-day moving average (MA) of 3610.70, above the 50-day MA of 3451.30, and below the 200-day MA of 3829.88, indicating a neutral trend. The MACD of 61.73 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 30.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:SOFW.

Sofwave Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:SOFW against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:SOFW	72Outperform	ILS 1.27B	31.54	―	―	25.84%	1717.73%
IL:BWAY	70Outperform	ILS 1.31B	39.00	10.95%	―	15.22%	33.08%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IL:SOFW and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:SOFW	Sofwave Medical Ltd.	3496.00	576.00	19.73%
IL:BWAY	Brainsway	3250.00	705.00	27.70%
IL:ILX	ILEX Medical Ltd.	4788.00	-1958.53	-29.03%
IL:ALMD	Allmed Solutions Ltd.	30.20	-1.40	-4.43%
IL:EPIT	EPITOMEE MEDICAL LTD	266.00	-482.80	-64.48%
IL:PLSM	Pulsenmore	488.10	-2379.65	-82.98%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 10, 2026

Sofwave AI Stock Analysis