NovoCure (NVCR) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 14.58%
• EPS Growth: 0.86%
• Country: US
• Employees: 1,488
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.36
• Shares Outstanding: 111,799,290
• 10 Day Avg. Volume: 1,405,165
• 30 Day Avg. Volume: 1,888,282
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 2.81
• Enterprise Value/Gross Profit: 3.68
• Enterprise Value/Ebitda: -16.00
• 1Y Price Target: $29.08
• Price Target Upside: 144.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 46 Neutral
• Price Target: $11.00 ▼(-7.64% Downside)

NovoCure's overall stock score is primarily influenced by its financial performance challenges, including persistent losses and high leverage. Technical analysis indicates a bearish trend, and valuation metrics are poor due to negative earnings. The earnings call provided some positive insights into clinical trials and market expansion, slightly offsetting the negative aspects.

Positive Factors

Earnings

2Q25 revenues beat consensus estimates, primarily driven by active patient growth across major markets.

Market Expansion

The company is engaging with Japanese regulators for the next pancreatic cancer PMA submission, indicating expansion into new markets.

Regulatory Progress

There is a high likelihood of FDA approval for the PANOVA-3 Phase 3 trial, which could positively impact the company's product pipeline.

Negative Factors

Mixed Launch Results

The disclosed metrics on the early lung cancer launch were mixed.

Prescription Trends

The number of unique prescribers decreased to 75 in 2Q from 93 in 1Q25, indicating a reduction in the number of doctors prescribing the treatment.

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 faces profitability challenges despite modest revenue growth, with high operational costs eroding profits. The balance sheet is stable with a solid equity base, but cash flow issues are concerning.

Income Statement

NovoCure has shown a modest increase in revenue over the TTM period, with a revenue growth rate of 2.72%. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins of -26.41% and -26.84% respectively. The gross profit margin is relatively healthy at 77.16%, suggesting strong core operations but high operational costs are eroding profitability.

Balance Sheet

The balance sheet presents a mixed picture. NovoCure has a relatively high debt-to-equity ratio of 0.25, indicating moderate leverage. The return on equity is negative due to the net loss, but the equity ratio is a healthy 59.98%, indicating a stable capital structure with sufficient equity backing.

Cash Flow

Cash flow is a concern for NovoCure, with negative free cash flow of -$72.14 million and deterioration in free cash flow growth. The operating cash flow to net income ratio is negative, reflecting challenges in converting profits into cash. The company appears to be burning cash, which poses a risk if not addressed.

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

NovoCure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.91
• 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 Negative. The current price of 11.91 is above the 20-day moving average (MA) of 11.65, below the 50-day MA of 14.41, and below the 200-day MA of 19.64, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 47.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVCR.

NovoCure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATRC	61 Neutral	$1.88B	―	-7.85%	―	16.28%	10.63%
BLFS	60 Neutral	$1.23B	―	-5.98%	―	-18.61%	92.36%
SMTI	58 Neutral	$299.56M	―	-25.78%	―	34.29%	-49.21%
STAA	56 Neutral	$1.36B	55.81	-25.55%	―	-32.59%	-667.81%
QDEL	53 Neutral	$1.90B	―	-14.80%	―	-3.00%	76.48%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
NVCR	46 Neutral	$1.32B	―	-48.07%	―	14.58%	0.86%

NovoCure Corporate Events

NovoCure Appoints New President at Annual Meeting

On June 4, 2025, NovoCure held its annual general meeting where shareholders elected eleven directors to serve until the 2026 meeting, with no third-party arrangements involved. Additionally, Francis Leonard was appointed as President of NovoCure and awarded Restricted Share Units under the company’s incentive plan. The meeting also saw the approval of several proposals, including the ratification of the company’s independent auditor, a non-binding advisory vote on executive compensation, and the approval of the 2025 Employee Share Purchase Plan.

NovoCure Announces Positive Phase 3 Trial Results

On May 31, 2025, Novocure announced positive results from its Phase 3 PANOVA-3 clinical trial at the ASCO Annual Meeting, demonstrating that TTFields therapy, when combined with gemcitabine and nab-paclitaxel, significantly improves overall survival and extends pain-free survival for patients with unresectable, locally advanced pancreatic adenocarcinoma. The findings, which will support a Premarket Approval submission to the FDA, highlight TTFields’ potential to become a standard treatment for this challenging cancer type, marking a significant advancement in Novocure’s market positioning and offering hope for improved patient outcomes.