NovoCure (NVCR) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 11.17%
• EPS Growth: -15.64%
• Country: US
• Employees: 1,488
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.33
• Shares Outstanding: 111,981,980
• 10 Day Avg. Volume: 1,887,304
• 30 Day Avg. Volume: 1,498,552
• PEG Ratio: 0.95
• Price to Book (P/B): 8.92
• Price to Sales (P/S): 5.31
• P/FCF Ratio: -46.42
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: -11.24
• 1Y Price Target: $28.40
• Price Target Upside: 148.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -1.57
• Revenue Forecast (FY): $633.51M

• Rating: 39 Underperform
• Price Target: $11.50 ▲(0.44% Upside)

NovoCure's overall stock score is primarily impacted by its financial challenges and weak technical indicators. The company's high leverage and negative cash flows, combined with bearish market momentum, contribute to a low score. Valuation concerns further weigh down the score, as the negative P/E ratio and lack of dividend yield make it less attractive to investors.

Positive Factors

International Market Growth

The expansion in international markets indicates a strong global demand for NovoCure's products, which can lead to sustained revenue growth and diversification of income streams, reducing reliance on any single market.

Regulatory Approval in Japan

Regulatory approval in Japan for a new indication enhances NovoCure's competitive position and opens up a significant market, potentially driving future revenue growth and market share.

GBM Patient Growth

Consistent growth in GBM patients demonstrates strong demand and effective market penetration, supporting long-term revenue stability and reinforcing NovoCure's market leadership in this segment.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, especially if revenue growth does not accelerate, potentially impacting NovoCure's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow indicates challenges in covering operational costs and funding growth initiatives, which could hinder NovoCure's ability to sustain long-term operations without external financing.

Challenges in U.S. Market

Flat growth in the U.S. market suggests competitive pressures and potential saturation, which could limit NovoCure's domestic revenue growth and necessitate strategic adjustments.

NovoCure Business Overview & Revenue Model

Company Description

NovoCure is a clinical-stage biotechnology company focused on developing and commercializing innovative therapies for the treatment of cancer. The company is primarily known for its proprietary Tumor Treating Fields (TTFields) technology, which uses electric fields to disrupt cancer cell division and enhance the efficacy of other treatments. NovoCure operates in the oncology sector, with its core product being Optune, a device approved for the treatment of glioblastoma multiforme, and it is also investigating the use of TTFields for other indications such as lung cancer and pancreatic cancer.

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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 11.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 11.45 is below the 20-day moving average (MA) of 12.16, below the 50-day MA of 12.93, and below the 200-day MA of 15.89, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 52.39 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
IMO	73 Outperform	$68.92B	17.73	16.52%	2.22%	-6.18%	-14.06%
ATRC	65 Neutral	$1.65B	―	-6.11%	―	15.80%	26.94%
BLFS	54 Neutral	$1.17B	―	-5.20%	―	-18.82%	92.56%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
QDEL	45 Neutral	$1.43B	―	-44.21%	―	-3.43%	38.98%
SMTI	41 Neutral	$170.31M	―	-27.19%	―	30.55%	-340.19%
NVCR	39 Underperform	$1.26B	―	-50.60%	―	11.17%	-15.64%

NovoCure Corporate Events

NovoCure’s Mixed Q3: Growth Amid Challenges

NovoCure Ltd. recently held its third-quarter earnings call, which painted a mixed picture of the company’s current standing and future prospects. The sentiment was generally positive, highlighting strong growth in the glioblastoma multiforme (GBM) segment and international markets, as well as regulatory advancements for new indications. However, these positives were counterbalanced by challenges in launching treatments for non-small cell lung cancer, stagnant growth in the U.S. market, and financial hurdles such as reduced gross margins and net losses.

Novocure Ltd. Reports Q3 2025 Financial Results

Novocure Ltd. is a global oncology company specializing in the development and commercialization of Tumor Treating Fields (TTFields) therapy, aimed at extending survival in patients with aggressive forms of cancer.

NovoCure’s Phase 3 Glioblastoma Study: A Potential Game-Changer in Cancer Treatment

NovoCure Ltd. is conducting a significant clinical study titled ‘A Phase 3, Randomized, Double-Blind, Placebo-Controlled Study of Optune® Concomitant With Maintenance Temozolomide and Pembrolizumab Versus Optune® Concomitant With Maintenance Temozolomide and Placebo for the Treatment of Newly Diagnosed Glioblastoma (EF-41/KEYNOTE D58).’ The study aims to evaluate the overall survival of patients with newly diagnosed glioblastoma, a highly aggressive brain cancer, by comparing the effectiveness of the Optune device combined with the chemotherapy agent Temozolomide and the immunotherapy drug Pembrolizumab against a control group receiving a placebo.

NovoCure’s LUNAR-2 Study: A New Horizon in Lung Cancer Treatment

The LUNAR-2 study by NovoCure Ltd. aims to evaluate the effectiveness and safety of Tumor Treating Fields (TTFields) when used alongside pembrolizumab and platinum-based chemotherapy in treating metastatic non-small cell lung cancer (NSCLC). The study’s primary objectives are to assess overall survival and progression-free survival, with secondary goals focusing on outcomes related to specific lung cancer subtypes.

NovoCure’s TIGER Meso Study: A Promising Update for Pleural Mesothelioma Treatment

In a recent update, NovoCure Ltd. announced the ongoing TIGER Meso Study, officially titled ‘TTFields in General Routine Clinical Care in Patients With Pleural Mesothelioma Study.’ The study aims to gather real-life data on the use of Tumor Treating Fields (TTFields) in treating pleural mesothelioma, a rare and aggressive cancer. This research is significant as it seeks to validate the effectiveness of TTFields in routine clinical settings, potentially offering new hope for patients.

NovoCure’s LUNAR-4 Study: A New Horizon in Lung Cancer Treatment

Study Overview: The LUNAR-4 study, officially titled ‘Pilot, Single Arm, Open-Label, Multinational Study of Tumor Treating Fields (TTFields, 150 kHz) Concomitant With Pembrolizumab for the Treatment of Metastatic Non-Small Cell Lung Cancer (NSCLC) Previously Treated With a PD-1/PD-L1 Inhibitor and Platinum-Based Chemotherapy,’ aims to evaluate the effectiveness and safety of TTFields therapy combined with pembrolizumab in patients with metastatic NSCLC. This study is significant as it explores a novel treatment combination for a challenging cancer type.

NovoCure’s TIGER France Study: A Potential Game-Changer for Glioblastoma Treatment

NovoCure Ltd. is conducting a study titled ‘Tumor Treating Fields General Routine Clinical Care in Newly Diagnosed Glioblastoma Patients: a French Prospective Non-Interventional Study – TIGER France.’ The study aims to confirm the survival benefits of the Optune Gio® device in terms of overall survival (OS) and progression-free survival (PFS) for patients with newly diagnosed glioblastoma (GBM) in France. It also seeks to evaluate the device’s impact on quality of life (QoL) in a real-world setting.

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.

NovoCure’s Pivotal Study on Optune® for Glioblastoma: A Market Game-Changer?

NovoCure Ltd. is conducting a pivotal study titled ‘EF-32: Pivotal, Randomized, Open-Label Study of Optune® (Tumor Treating Fields, 200kHz) Concomitant With Radiation Therapy and Temozolomide for the Treatment of Newly Diagnosed Glioblastoma.’ The study aims to assess the effectiveness and safety of the Optune® device when used alongside radiation therapy and temozolomide in patients with newly diagnosed glioblastoma, compared to the standard treatment of radiation therapy and temozolomide alone. This study is significant as it explores the potential for improved clinical outcomes by introducing Optune® earlier in the treatment process.