NovoCure (NVCR) AI Stock Analysis

• Market Cap: $1.86B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 18.27%
• EPS Growth: 16.28%
• Country: US
• Employees: 1,488
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.31
• Shares Outstanding: 111,485,634
• 10 Day Avg. Volume: 1,643,057
• 30 Day Avg. Volume: 1,379,120
• PEG Ratio: -1.45
• Price to Book (P/B): 17.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 814.09
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: -3.85
• 1Y Price Target: $33.40
• Price Target Upside: 96.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 50 Neutral
• Price Target: $17.50 ▲(2.94%Upside)

NovoCure's overall stock score reflects its financial challenges and valuation concerns, despite positive strategic developments. The company's efforts in expanding its market presence and promising clinical outcomes are promising but need to translate into improved financial performance to enhance its stock outlook.

Positive Factors

Clinical Trial Results

The PANOVA-3 study met its primary endpoint of overall survival, which was viewed as an unexpected positive for the stock.

Market Performance

NVCR reported total 1Q25 revenues of $155.0M, above consensus estimates of $146.9M, primarily attributed to active patient growth across major markets and reimbursement improvements.

Regulatory Prospects

The planned regulatory submissions for TTFields in locally advanced pancreatic cancer and non-small-cell lung cancer brain metastases could enhance the company's growth prospects.

Negative Factors

Regulatory and Approval Challenges

The 2-month overall survival benefit is considered modest but sufficient for FDA approval, supporting the inclusion of TTF as a treatment option for patients.

Regulatory and Tariff Impact

Management shared their expectation on the potential impact of recent global tariff changes, projecting an increase in import duties of up to $8-11M in 2025.

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 sale and distribution of its Tumor Treating Fields (TTFields) therapy devices. The company makes money by providing these devices to healthcare providers and hospitals, who then use them to treat patients with approved indications such as glioblastoma and malignant pleural mesothelioma. NovoCure's revenue model is heavily dependent on reimbursement from health insurance providers and government health programs, as these cover the cost of TTFields therapy for patients. Additionally, NovoCure engages in clinical trials and collaborations with research institutions to expand the application of TTFields to other cancer types, which could potentially increase future revenue streams. The company may also benefit from partnerships with pharmaceutical companies aimed at combining TTFields with other cancer therapies, further driving revenue growth.

NovoCure Financial Statement Overview

Summary

NovoCure has shown modest revenue growth but faces significant profitability challenges, with negative net profit and EBIT margins. The balance sheet is stable with a solid equity base, though cash flow issues are a pressing concern.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	621.71M	605.22M	509.34M	537.84M	535.03M	494.37M
Gross Profit	479.70M	468.04M	381.06M	422.97M	420.15M	387.87M
EBITDA	-105.45M	-108.26M	-175.87M	-63.11M	-38.38M	45.30M
Net Income	-164.19M	-168.63M	-207.04M	-92.53M	-58.35M	19.81M
Balance Sheet
Total Assets	370.25M	1.24B	1.15B	1.19B	1.14B	1.05B
Cash, Cash Equivalents and Short-Term Investments	256.60M	962.20M	910.62M	969.42M	937.70M	842.58M
Total Debt	160.32M	683.35M	596.24M	584.27M	575.21M	444.20M
Total Liabilities	243.86M	880.61M	783.63M	750.48M	729.00M	575.46M
Stockholders Equity	126.39M	360.18M	362.50M	441.17M	410.49M	476.53M
Cash Flow
Free Cash Flow	-72.14M	-69.22M	-100.43M	9.43M	58.59M	84.18M
Operating Cash Flow	-30.46M	-26.37M	-73.34M	30.79M	82.76M	99.15M
Investing Cash Flow	-392.93M	-140.24M	184.15M	-139.96M	-144.83M	-472.85M
Financing Cash Flow	95.35M	90.31M	15.79M	15.49M	25.70M	440.21M

NovoCure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 17 is below the 20-day moving average (MA) of 17.61, below the 50-day MA of 17.52, and below the 200-day MA of 20.17, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 19.57 is Positive, 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	68 Neutral	$1.55B	―	-8.38%	―	15.79%	-1.20%
BLFS	56 Neutral	$1.04B	―	-3.29%	―	-23.12%	97.46%
STAA	54 Neutral	$809.26M	55.81	-19.14%	―	-14.44%	-557.38%
QDEL	52 Neutral	$1.90B	―	-10.59%	―	-3.18%	81.18%
Sector *	51 Neutral	$7.36B	0.28	-61.07%	2.37%	17.46%	1.71%
NVCR	50 Neutral	$1.86B	―	-45.52%	―	18.27%	16.28%
SMTI	44 Neutral	$247.26M	―	-28.58%	―	34.65%	-128.56%

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.

The most recent analyst rating on (NVCR) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on NovoCure stock, see the NVCR Stock Forecast page.

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.

The most recent analyst rating on (NVCR) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on NovoCure stock, see the NVCR Stock Forecast page.

NovoCure’s Optune Lua Gains CE Mark Approval

On April 22, 2025, Novocure announced that its Optune Lua® device received CE Mark approval for treating adult patients with metastatic non-small cell lung cancer (mNSCLC) in conjunction with immune checkpoint inhibitors or docetaxel, following progression on a platinum-based regimen. This approval, supported by the Phase 3 LUNAR trial, marks a significant milestone for Novocure, as Optune Lua demonstrated a substantial improvement in median overall survival for this patient group, offering a promising new treatment option with minimal systemic toxicity. Novocure is preparing to launch Optune Lua in Germany, following local registration requirements, and will conduct a post-market study to further assess its effectiveness.