NovoCure (NVCR) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• 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: 1,722,353
• 30 Day Avg. Volume: 1,751,504
• 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: 0.89
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: -11.24
• 1Y Price Target: $27.00
• Price Target Upside: 104.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.4
• Revenue Forecast (FY): $649.94M

• Rating: 48 Neutral
• Price Target: $12.00 ▼(-9.23% Downside)

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 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 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 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: Positive
• Last Price: 13.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 13.22 is above the 20-day moving average (MA) of 11.93, above the 50-day MA of 12.76, and below the 200-day MA of 15.20, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.46 is Neutral, neither overbought nor oversold. The STOCH value of 83.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVCR.

NovoCure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMO	72 Outperform	$62.42B	16.06	16.52%	2.29%	-6.18%	-14.06%
ATRC	71 Outperform	$1.80B	―	-6.11%	―	15.80%	26.94%
QDEL	54 Neutral	$1.85B	―	-44.21%	―	-3.43%	38.98%
BLFS	52 Neutral	$1.19B	―	-5.20%	―	-18.82%	92.56%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NVCR	48 Neutral	$1.35B	―	-50.60%	―	11.17%	-15.64%
SMTI	41 Neutral	$194.44M	―	-27.19%	―	30.55%	-340.19%

NovoCure Corporate Events

NovoCure Appoints Frank Leonard as New CEO

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.

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.