MeritValue

Brainsway Ltd.

BWAYdata completeness 75%8 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Brainsway Ltd. earns about -58% on invested capital, but has diluted owners by 69% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2020FY 2021FY 2022FY 2023FY 2024
Revenue$22.1M1$29.7M2$27.2M3$31.8M3$41M3
Net income−$5.39M4−$6.46M5−$13.3M6−$4.2M6$2.92M6
Operating cash flow−$1.44M7$884,0008−$9.76M9$1.28M9$10.3M9
Capital expenditure$2.47M10$2.24M10———
Free cash flow (derived)−$3.91M7−$1.35M8———
Total debt—————
Cash & equivalents$17M11$16.9M12$47.6M12$10.5M12$69.3M12
Diluted shares22.3M32.9M33.1M33.2M37.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$16.56
your share of equity
Profit it earned you last year
$0.78
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $16.56 of net worth that earned you $0.78 last year.

iii. Is this a good business?
Moat signal · return on invested capital
-58% avg · 5y
FY20 -152%FY21 -13%FY22 —FY23 -10%FY24 —

It earned an average -58% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+69% shares · 5y

Share count is up 69% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$1.36
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2020-12-31 · accession 0001171843-23-001915 (Revenue)
  2. 20-F · period ending 2021-12-31 · accession 0001171843-24-001696 (Revenue)
  3. 20-F · period ending 2022-12-31 · accession 0001171843-25-002347 (Revenue)
  4. 20-F · period ending 2020-12-31 · accession 0001171843-23-001915 (ProfitLoss)
  5. 20-F · period ending 2021-12-31 · accession 0001171843-24-001696 (ProfitLoss)
  6. 20-F · period ending 2022-12-31 · accession 0001171843-25-002347 (ProfitLoss)
  7. 20-F · period ending 2020-12-31 · accession 0001171843-23-001915 (CashFlowsFromUsedInOperatingActivities)
  8. 20-F · period ending 2021-12-31 · accession 0001171843-24-001696 (CashFlowsFromUsedInOperatingActivities)
  9. 20-F · period ending 2022-12-31 · accession 0001171843-25-002347 (CashFlowsFromUsedInOperatingActivities)
  10. 20-F · period ending 2020-12-31 · accession 0001171843-22-002539 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  11. 20-F · period ending 2020-12-31 · accession 0001171843-24-001696 (CashAndCashEquivalents)
  12. 20-F · period ending 2021-12-31 · accession 0001171843-25-002347 (CashAndCashEquivalents)