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NovoCure Ltd. (NVCR)
NASDAQ:NVCR
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NovoCure
(NASDAQ:NVCR)
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Rating:48Neutral
Price Target:
$14.00
▲(2.64% Upside)
NovoCure's overall stock score is primarily impacted by its financial challenges, including negative profitability and high leverage. While there are positive developments, such as international expansion and regulatory approvals, these are offset by operational inefficiencies and valuation concerns. The technical indicators suggest a lack of strong momentum, further contributing to the moderate score.
Positive Factors
International Expansion
International expansion into key markets like France, Japan, and Germany enhances NovoCure's global footprint, diversifying revenue streams and reducing reliance on any single market, which is crucial for long-term growth and stability.
Regulatory Progress
Regulatory approval in Japan for Optune Lua in NSCLC treatment strengthens NovoCure's market position, potentially increasing adoption and revenue through new therapeutic options in a significant market.
Leadership Change
The appointment of Frank Leonard as CEO, with his extensive experience at NovoCure, is expected to provide strategic continuity and leadership stability, guiding the company through future transformative milestones.
Negative Factors
High Leverage
High leverage poses financial risk, limiting NovoCure's flexibility to invest in growth opportunities and potentially impacting its ability to weather economic downturns or operational challenges.
Negative Profitability
Negative profitability margins indicate ongoing operational challenges, which may hinder NovoCure's ability to reinvest in its business, affecting long-term growth and shareholder value.
Cash Flow Concerns
Negative cash flow highlights difficulties in generating sufficient cash from operations, which could strain NovoCure's ability to fund its growth initiatives and meet financial obligations.
NovoCure (NVCR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.53B
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth11.17%
EPS Growth-15.64%
CountryUS
Employees1,488
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.33
Shares Outstanding111,981,980
10 Day Avg. Volume1,346,192
30 Day Avg. Volume1,343,449
Financial Highlights & Ratios
PEG Ratio0.95
Price to Book (P/B)8.92
Price to Sales (P/S)5.31
P/FCF Ratio-46.42
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit2.49
Enterprise Value/Ebitda-11.24
Forecast
1Y Price Target
$23.50Price Target Upside72.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-1.5
Revenue Forecast (FY)$688.32M
NovoCure Business Overview & Revenue Model
Company DescriptionNovoCure 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 MoneyNovoCure generates revenue primarily through the sale of its Optune devices and related consumables, such as the TTFields transducer arrays, which are used in conjunction with the therapy. The company also earns revenue from insurance reimbursements, as many health insurance plans cover the cost of Optune therapy for eligible patients. Significant partnerships with healthcare providers and collaborations with research institutions enhance its market reach and credibility. Additionally, NovoCure may benefit from expanding its indications for TTFields therapy beyond glioblastoma and mesothelioma, creating new revenue opportunities.
NovoCure Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlights strong growth in the GBM segment and international markets, along with regulatory progress for new indications. However, these positives are tempered by challenges in the non-small cell lung cancer launch, flat growth in the U.S. market, and financial setbacks such as reduced gross margin and net loss.Q3-2025 Updates
Positive Updates
GBM Patient Growth
The GBM business remains solid with active patients growing between 5% and 12% year-over-year for the last 9 consecutive quarters, ending Q3 2025 with 4,277 GBM patients on therapy.
International Expansion
Significant growth in international markets with France, Japan, and Germany contributing 27%, 8%, and 7% growth respectively. Positive national coverage decision from the Spanish Ministry of Health expected to mature over time.
Regulatory Progress in Japan
Received approval from Japanese regulators for the use of Optune Lua with checkpoint inhibitors in advanced or recurrent non-small cell lung cancer, anticipating strong physician adoption.
PANOVA-3 Progress
Substantial progress with PANOVA-3 data submitted to the FDA for pancreatic cancer treatment, with expected approval mid-next year.
Financial Performance
Net revenues of $167 million, an increase of 8% from the third quarter last year driven by strong performance in GBM franchises in France, Germany, and Japan.
Negative Updates
Challenges in Non-Small Cell Lung Cancer Launch
The launch is behind expectations with only 100 lung cancer patients on therapy in Q3, facing challenges due to poor overall health status of patients and high competition from new targeted drug therapies.
Flat Growth in the U.S. Market
The U.S. GBM active patient count was flat compared to Q3 2024, with challenges in academic centers prioritizing pharmaceutical trials over device-based therapies.
Gross Margin Reduction
Gross margin for the third quarter was 73%, reflecting the rollout of HFE arrays, ongoing lung cancer launch without established reimbursement, and increased tariffs.
Net Loss
Net loss for the quarter was $37 million with a loss per share of $0.33, and adjusted EBITDA was negative $3 million.
Company Guidance
In the Novocure Third Quarter 2025 Earnings Call, the company provided guidance indicating a focus on expanding treatment to include four cancer indications by the end of 2026, alongside reaching profitability and making strategic investments to bolster their product portfolio. Key metrics highlighted include a 5% to 12% year-over-year growth in glioblastoma active patients over the past nine quarters, with the third quarter ending at 4,277 GBM patients on therapy, marking the largest patient count to date. Additionally, Net revenues for Q3 stood at $167 million, reflecting an 8% increase from the previous year, driven by growth in France, Germany, and Japan. The gross margin for the quarter was reported at 73%, with a noted reduction due to factors like global HFE array rollout and non-small cell lung cancer launch expenses. The company aims for a sustainable adjusted EBITDA breakeven by 2027, with a revenue target of $700 million to $750 million.NovoCure Financial Statement Overview
Summary
NovoCure faces significant financial challenges, with negative profitability and high leverage. The company shows modest revenue growth but struggles with negative cash flows and high debt levels. The strong gross profit margin is a positive indicator, but overall financial health requires careful management.Income Statement
NovoCure's revenue has shown modest growth with a TTM increase of 1.92%. However, the company is experiencing negative profitability margins, with a TTM net profit margin of -27.66% and an EBIT margin of -18.84%. The gross profit margin remains strong at 75.37%, indicating efficient cost management, but the negative EBIT and net profit margins highlight ongoing operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 2.34 in the TTM period, indicating significant leverage. Return on equity is negative at -50.29%, reflecting ongoing losses. The equity ratio is not provided, but the high leverage suggests potential financial risk if revenue growth does not improve.40
Negative
Cash Flow
Cash flow analysis reveals negative operating cash flow and free cash flow in the TTM period, with a free cash flow growth rate of -18.94%. The free cash flow to net income ratio is positive at 1.89, suggesting that cash flow is better than net income, but overall cash generation remains a concern.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 642.27M | 605.22M | 509.34M | 537.84M | 535.03M | 494.37M |
| Gross Profit | 484.08M | 468.04M | 381.06M | 422.97M | 420.15M | 387.87M |
| EBITDA | -107.50M | -109.58M | -177.45M | -67.89M | -38.38M | 44.83M |
| Net Income | -177.65M | -168.63M | -207.04M | -92.53M | -58.35M | 19.81M |
Balance Sheet | ||||||
| Total Assets | 1.36B | 1.24B | 1.15B | 1.19B | 1.14B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 959.87M | 910.62M | 969.42M | 938.51M | 854.08M |
| Total Debt | 797.94M | 683.35M | 596.24M | 584.27M | 581.90M | 450.68M |
| Total Liabilities | 1.02B | 880.61M | 783.63M | 750.48M | 729.00M | 575.46M |
| Stockholders Equity | 341.33M | 360.18M | 362.50M | 441.17M | 410.49M | 476.53M |
Cash Flow | ||||||
| Free Cash Flow | -65.17M | -69.22M | -100.43M | 9.43M | 58.59M | 84.18M |
| Operating Cash Flow | -34.48M | -26.37M | -73.34M | 30.79M | 82.76M | 99.15M |
| Investing Cash Flow | 78.74M | -140.24M | 184.15M | -139.96M | -144.83M | -472.85M |
| Financing Cash Flow | 110.84M | 90.31M | 15.79M | 15.49M | 25.70M | 440.21M |
NovoCure Technical Analysis
Positive
13.64
Price Trends
12.66
Positive
12.89
Positive
14.47
Negative
Market Momentum
0.32
Positive
52.41
Neutral
29.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVCR, the sentiment is Positive. The current price of 13.64 is above the 20-day moving average (MA) of 13.62, above the 50-day MA of 12.66, and below the 200-day MA of 14.47, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVCR.
NovoCure Risk Analysis
NovoCure disclosed 41 risk factors in its most recent earnings report. NovoCure reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NovoCure Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.94B | -64.24 | -6.11% | ― | 15.80% | 26.94% | |
72 Outperform | $66.52B | 17.11 | 16.52% | 2.45% | -6.18% | -14.06% | |
54 Neutral | $2.40B | ― | -44.21% | ― | -3.43% | 38.98% | |
52 Neutral | $1.18B | -355.46 | -5.20% | ― | -18.82% | 92.56% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.53B | -8.46 | -50.60% | ― | 11.17% | -15.64% | |
42 Neutral | $204.09M | -5.26 | -27.19% | ― | 30.55% | -340.19% |
* Healthcare Sector Average
NVCR
NovoCure
13.64
-13.32
-49.41%
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NovoCure Corporate Events
Business Operations and StrategyExecutive/Board Changes
NovoCure Appoints Frank Leonard as New CEO
Neutral
Dec 1, 2025
On November 24, 2025, Ashley Cordova resigned as CEO and Director of Novocure, effective November 30, 2025, with no disagreements reported. Frank Leonard, previously the company’s President, was appointed as the new CEO effective December 1, 2025. Leonard, who has been with Novocure since 2010, has played a significant role in the company’s operations and strategy, and his appointment is expected to guide the company through future transformative milestones.
The most recent analyst rating on (NVCR) stock is a Sell with a $11.50 price target. To see the full list of analyst forecasts on NovoCure stock, see the NVCR Stock Forecast page.
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.