NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of Optune for the treatment of a variety of solid tumors. More Details
+ 1 more risk
Reasonable growth potential with mediocre balance sheet.
Share Price & News
How has NovoCure's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NVCR's share price has been volatile over the past 3 months.
7 Day Return
US Medical Equipment
1 Year Return
US Medical Equipment
Return vs Industry: NVCR exceeded the US Medical Equipment industry which returned 24.4% over the past year.
Return vs Market: NVCR exceeded the US Market which returned 19.5% over the past year.
Price Volatility Vs. Market
How volatile is NovoCure's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StNovoCure (NASDAQ:NVCR) Has A Pretty Healthy Balance Sheet
3 weeks ago | Simply Wall StHas NovoCure Limited's (NASDAQ:NVCR) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
1 month ago | Simply Wall StAnnouncing: NovoCure (NASDAQ:NVCR) Stock Increased An Energizing 277% In The Last Three Years
Is NovoCure undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NVCR ($132.34) is trading above our estimate of fair value ($40.35)
Significantly Below Fair Value: NVCR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NVCR is poor value based on its PE Ratio (1117.3x) compared to the US Medical Equipment industry average (51.1x).
PE vs Market: NVCR is poor value based on its PE Ratio (1117.3x) compared to the US market (19x).
Price to Earnings Growth Ratio
PEG Ratio: NVCR is poor value based on its PEG Ratio (21.7x)
Price to Book Ratio
PB vs Industry: NVCR is overvalued based on its PB Ratio (49.9x) compared to the US Medical Equipment industry average (4.1x).
How is NovoCure forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NVCR's forecast earnings growth (51.5% per year) is above the savings rate (2.2%).
Earnings vs Market: NVCR's earnings (51.5% per year) are forecast to grow faster than the US market (22.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NVCR's revenue (14.4% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: NVCR's revenue (14.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NVCR's Return on Equity is forecast to be low in 3 years time (7.8%).
How has NovoCure performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NVCR has a large one-off gain of $2.0M impacting its June 30 2020 financial results.
Growing Profit Margin: NVCR became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NVCR has become profitable over the past 5 years, growing earnings by 35.1% per year.
Accelerating Growth: NVCR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NVCR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (2.5%).
Return on Equity
High ROE: NVCR's Return on Equity (4.4%) is considered low.
How is NovoCure's financial position?
Financial Position Analysis
Short Term Liabilities: NVCR's short term assets ($487.8M) exceed its short term liabilities ($85.1M).
Long Term Liabilities: NVCR's short term assets ($487.8M) exceed its long term liabilities ($176.0M).
Debt to Equity History and Analysis
Debt Level: NVCR's debt to equity ratio (54.1%) is considered high.
Reducing Debt: NVCR's debt to equity ratio has increased from 17.1% to 54.1% over the past 5 years.
Debt Coverage: NVCR's debt is well covered by operating cash flow (25.2%).
Interest Coverage: NVCR's interest payments on its debt are not well covered by EBIT (0.7x coverage).
What is NovoCure current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NVCR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NVCR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NVCR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NVCR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NVCR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Asaf Danziger (54 yo)
Mr. Asaf Danziger is a Director at Airway Therapeutics, Inc. since April 2020. He has been the Chief Executive Officer and Director of Novocure Limited since 2002 and 2012 respectively and also serves as i ...
CEO Compensation Analysis
Compensation vs Market: Asaf's total compensation ($USD7.32M) is below average for companies of similar size in the US market ($USD11.20M).
Compensation vs Earnings: Asaf's compensation has been consistent with company performance over the past year.
|Executive Chairman||11.75yrs||US$8.29m||0.64% |
|Chief Operating Officer||0.17yr||US$4.19m||0.10% |
|Chief Commercial Officer||no data||US$3.62m||0.070% |
|Founder & CTO||20.75yrs||US$282.51k||no data|
|CFO & Vice President of Investor Relations||0.17yr||no data||0.0073% |
|General Counsel||no data||no data||0.056% |
|Chief Medical Officer||1.5yrs||no data||0.0045% |
|Chief Science Officer||no data||no data||0.0055% |
|Chief Development Officer||0.17yr||no data||0.059% |
Experienced Management: NVCR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
|Executive Chairman||11.75yrs||US$8.29m||0.64% |
|Independent Director||2.25yrs||US$414.30k||0.0033% |
|Independent Director||2.42yrs||US$397.47k||0.0033% |
|Independent Vice Chairman||9yrs||US$389.97k||0.069% |
|Lead Independent Director||4.42yrs||US$434.30k||0.16% |
|Independent Director||2.42yrs||US$408.53k||0.0033% |
|Independent Director||3.42yrs||US$409.97k||0.012% |
Experienced Board: NVCR's board of directors are considered experienced (3.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NVCR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.
NovoCure Limited's company bio, employee growth, exchange listings and data sources
- Name: NovoCure Limited
- Ticker: NVCR
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Health Care Equipment
- Sector: Healthcare
- Market Cap: US$13.378b
- Shares outstanding: 101.09m
- Website: https://www.novocure.com
Number of Employees
- NovoCure Limited
- No. 4 The Forum
- Second Floor
- Saint Helier
- JE2 4UF
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NVCR||NasdaqGS (Nasdaq Global Select)||Yes||Ordinary Shares||US||USD||Oct 2015|
|38||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Oct 2015|
NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of Optune for the treatment of a variety of solid tumors. The company markets Optune and NovoTTF-100L, ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/20 00:33|
|End of Day Share Price||2020/10/19 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.