NVCR

Novocure Ltd

Fundamental data last updated:November 6, 2026

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company profile

SECTOR

Healthcare

industry

Medical - Devices

Exchange

NASDAQ

County of HQ

Israel

Next Earnings Date

Pending Announcement

Business Summary

Novocure Ltd. operates with a unique business model centered around its proprietary Tumor Treating Fields technology. This innovation provides a non-invasive cancer treatment, creating a strong competitive moat. By offering a differentiated product, they lock in customers through long-term treatment plans and partnerships with healthcare providers. Their ability to generate cash hinges on the effectiveness and adoption of their technology in the oncology market.

 


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VALUATION

P/E

-13.38

Market Cap ($M USD)

$1.65B

Forward P/E

4.00

PEG

1.13

PRICE TO SALES

2.27

PRICE TO BOOK

4.72

EV / EBITDA

-15.56

5-Year Average P/E

Free Cash Flow Yield

-1.23%

DCF Value

$-26.05

Graham Number

N/A

Price to FCF

-81.29

EV to FCF

-86.20

Earnings Yield

-7.36%

FCF Yield

-1.23%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$1.04

Next Year EPS Growth Estimate

-$1.24

Next Year Revenue Growth Estimate

$726.11M

Return on Equity (ROE)

-35.81%

FREE CASH FLOW

Operating Margin

-17.17%

Debt-to-Equity

0.28

Piotroski F-Score

5

Altman Z-Score

0.94

Return on Invested Capital (ROIC)

67.95%

Current Ratio

0.00

Quick Ratio

0.00

Net Debt to EBITDA

-0.89

Interest Coverage

-51.92

Gross Profit margin

77.02%

FCF PER SHARE

$-0.17

REVENUE PER SHARE

$6.21

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Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Novocure Ltd. significantly. With a DCF value deeply negative and a Graham Number unavailable, the stock’s valuation is perplexing. The Forward P/E of 4.00 suggests optimism for future earnings, yet the negative Earnings Yield and Altman Z-score of 0.94 raise red flags about financial distress. Despite a robust ROIC of 67.95%, the company’s negative EPS and operating margin indicate severe profitability challenges. This is a complex picture of potential growth overshadowed by current financial instability.

AI Exposure / Tech Reliance

In the rapidly evolving medical devices industry, Novocure Ltd. is well-positioned to leverage AI and tech advancements. Their focus on innovative cancer treatment solutions aligns with the increasing integration of AI in healthcare. This adaptability could enhance their operational efficiencies and patient outcomes.

The Bull Case

For the discerning value investor, Novocure's high ROIC of 67.95% is a beacon of capital efficiency. Despite a negative FCF Yield, the Piotroski F-Score of 5 indicates moderate financial health. The impressive gross profit margin of 77.02% suggests strong pricing power, which could be a catalyst for future profitability. These metrics hint at a company capable of generating substantial returns once it stabilizes its cash flow.

The Bear Case

However, the bear case is hard to ignore. The Price/Book ratio of 4.72 and Price/Sales of 2.27 suggest the stock is not cheap. The negative EV to EBITDA and Price to FCF ratios highlight severe cash flow issues. With a current ratio of zero, liquidity is a pressing concern, and the stock's proximity to its 52-week high suggests technical overextension. These factors paint a picture of a company struggling to maintain financial stability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$26.00

Institutional Ownership %

1-Year Beta

0.99

Insider Buying % (6 Mo)

Distance to 52-Week High

51.38%

Distance to 52-Week Low

30.70%

EARNINGS SURPRISE %

60.79%

50-DAY SMA

$15.98

200-DAY SMA

$14.82

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.