NovoCure (NVCR) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 14.58%
• EPS Growth: 0.86%
• Country: US
• Employees: 1,488
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.36
• Shares Outstanding: 111,799,290
• 10 Day Avg. Volume: 1,486,588
• 30 Day Avg. Volume: 1,529,398
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 2.81
• Enterprise Value/Gross Profit: 3.68
• Enterprise Value/Ebitda: -16.00
• 1Y Price Target: $29.08
• Price Target Upside: 129.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 45 Neutral
• Price Target: $12.50 ▼(-1.42% Downside)

The overall stock score is primarily impacted by financial performance challenges, including persistent losses and high leverage. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative profitability. The positive outlook from the earnings call is not factored into the score due to its exclusion from the weighted calculation.

Positive Factors

Regulatory Approval in Japan

This approval expands NovoCure's market reach in Japan, enhancing its competitive position and potential revenue growth in the non-small cell lung cancer segment.

Clinical Trial Success

Successful trial results in pancreatic cancer demonstrate the efficacy of TTFields, potentially leading to expanded indications and increased adoption of NovoCure's technology.

Active Patient Growth

Consistent growth in active patients indicates strong demand for NovoCure's products, supporting long-term revenue growth and market expansion.

Negative Factors

High Leverage

High leverage could strain NovoCure's financial flexibility, increasing risk if profitability does not improve, potentially impacting long-term stability.

Negative Cash Flow

Inability to generate positive free cash flow may limit NovoCure's capacity to invest in growth opportunities and manage debt, affecting future financial health.

Persistent Net Losses

Ongoing net losses highlight profitability challenges, which could hinder NovoCure's ability to sustain operations and invest in R&D over the long term.

NovoCure Business Overview & Revenue Model

Company Description

NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Europe, the Middle East, Africa, Japan, and Greater China. Its TTFields devices include Optune for the treatment of glioblastoma; and Optune Lua for the treatment of malignant pleural mesothelioma. The company also has ongoing or completed clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer. NovoCure Limited was incorporated in 2000 and is headquartered in Saint Helier, Jersey.

How the Company Makes Money

NovoCure generates revenue primarily through the sales of its medical device, Optune, which is prescribed to patients for the treatment of certain types of cancer. The company earns money from both direct sales to hospitals and outpatient clinics, as well as through reimbursement from insurance providers and government healthcare programs. Key revenue streams include patient subscriptions and device rentals. NovoCure has established partnerships with healthcare providers and institutions for clinical trials and research collaborations that may enhance its market presence and facilitate broader adoption of its technology, contributing to future earnings growth.

NovoCure Financial Statement Overview

Summary

NovoCure is experiencing revenue growth, but persistent losses and high leverage present significant challenges. The company needs to improve operational efficiencies and manage debt levels to enhance financial stability and profitability.

Income Statement

NovoCure shows a steady increase in revenue over the years, with a 4.1% growth from 2024 to the TTM period. However, the company is struggling with profitability, as evidenced by persistent negative EBIT and net income margins. The gross profit margin remains healthy at around 76% for the TTM, but high operating expenses are impacting overall profitability.

Balance Sheet

The company's balance sheet reflects a stable asset base with a consistent equity ratio around 28%. However, the debt-to-equity ratio of approximately 2.0 indicates a high level of leverage, which could pose risks if profitability does not improve. The return on equity remains negative due to continuous net losses.

Cash Flow

NovoCure's cash flow statement reveals challenges in generating positive free cash flow, with a negative free cash flow reported in the TTM. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from its operations to cover its net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	630.16M	605.22M	509.34M	537.84M	535.03M	494.37M
Gross Profit	481.33M	468.04M	381.06M	422.97M	420.15M	387.87M
EBITDA	-110.77M	-108.26M	-175.87M	-63.11M	-38.38M	45.30M
Net Income	-170.95M	-168.63M	-207.04M	-92.53M	-58.35M	19.81M
Balance Sheet
Total Assets	1.25B	1.24B	1.15B	1.19B	1.14B	1.05B
Cash, Cash Equivalents and Short-Term Investments	911.52M	962.20M	910.62M	969.42M	937.70M	842.58M
Total Debt	700.25M	683.35M	596.24M	584.27M	575.21M	444.20M
Total Liabilities	896.43M	880.61M	783.63M	750.48M	729.00M	575.46M
Stockholders Equity	349.44M	360.18M	362.50M	441.17M	410.49M	476.53M
Cash Flow
Free Cash Flow	-80.40M	-69.22M	-100.43M	9.43M	58.59M	84.18M
Operating Cash Flow	-44.68M	-26.37M	-73.34M	30.79M	82.76M	99.15M
Investing Cash Flow	17.50M	-140.24M	184.15M	-139.96M	-144.83M	-472.85M
Financing Cash Flow	10.42M	90.31M	15.79M	15.49M	25.70M	440.21M

NovoCure Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVCR, the sentiment is Neutral. The current price of 12.68 is above the 20-day moving average (MA) of 12.21, below the 50-day MA of 13.12, and below the 200-day MA of 19.32, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 41.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NVCR.

NovoCure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMO	77 Outperform	65.14B	14.09	20.41%	2.16%	-5.55%	-4.81%
ATRC	61 Neutral	1.72B	-45.03	-7.83%	―	16.28%	10.63%
SMTI	61 Neutral	311.67M	-30.15	-28.07%	―	34.29%	-49.21%
BLFS	60 Neutral	1.24B	-217.91	-1.59%	―	-18.61%	92.36%
QDEL	58 Neutral	1.96B	-4.42	-16.70%	―	-3.00%	76.48%
NVCR	45 Neutral	$1.42B	―	-48.07%	―	14.58%	0.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

NovoCure Corporate Events

NovoCure Gains Approval for Optune Lua in Japan

On September 15, 2025, Novocure announced that Japan’s Ministry of Health, Labour and Welfare approved Optune Lua® for use with PD-1/PD-L1 inhibitors in treating unresectable advanced/recurrent non-small cell lung cancer (NSCLC) after platinum-based chemotherapy. This approval, supported by the Phase 3 LUNAR trial, marks a significant advancement for patients, showing improved survival rates without severe side effects. The approval enhances Novocure’s market positioning in Japan, addressing the urgent need for innovative NSCLC treatments, and potentially benefiting stakeholders by providing a new therapeutic option.

The most recent analyst rating on (NVCR) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on NovoCure stock, see the NVCR Stock Forecast page.