NasdaqGS:NVCR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

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.


Market Performance


7 Day Return

-1.9%

NVCR

-1.2%

US Medical Equipment

-2.4%

US Market


1 Year Return

84.3%

NVCR

24.3%

US Medical Equipment

18.2%

US Market

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.


Shareholder returns

NVCRIndustryMarket
7 Day-1.9%-1.2%-2.4%
30 Day19.5%4.5%4.2%
90 Day98.0%7.0%6.3%
1 Year84.3%84.3%25.3%24.3%20.9%18.2%
3 Year643.5%643.5%74.7%70.2%41.2%31.8%
5 Year454.4%454.4%152.1%132.4%84.8%63.9%

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

Valuation

Is NovoCure undervalued compared to its fair value and its price relative to the market?

1117.26x

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).


Next Steps

Future Growth

How is NovoCure forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

51.5%

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%).


Next Steps

Past Performance

How has NovoCure performed over the past 5 years?

35.1%

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.


Next Steps

Financial Health

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).


Balance Sheet


Next Steps

Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Asaf Danziger (54 yo)

18.75yrs

Tenure

US$7,316,607

Compensation

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.


Leadership Team

NamePositionTenureCompensationOwnership
William Doyle
Executive Chairman11.75yrsUS$8.29m0.64%
$ 85.9m
Asaf Danziger
President18.75yrsUS$7.32m0.18%
$ 24.0m
Wilhelmus C. Groenhuysen
Chief Operating Officer0.17yrUS$4.19m0.10%
$ 13.6m
Pritesh Shah
Chief Commercial Officerno dataUS$3.62m0.070%
$ 9.3m
Yoram Palti
Founder & CTO20.75yrsUS$282.51kno data
Ashley Cordova
CFO & Vice President of Investor Relations0.17yrno data0.0073%
$ 972.6k
Todd Longsworth
General Counselno datano data0.056%
$ 7.5m
Ely Benaim
Chief Medical Officer1.5yrsno data0.0045%
$ 599.4k
Uri Weinberg
Chief Science Officerno datano data0.0055%
$ 738.5k
Frank Leonard
Chief Development Officer0.17yrno data0.059%
$ 7.9m

0.8yrs

Average Tenure

58yo

Average Age

Experienced Management: NVCR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Doyle
Executive Chairman11.75yrsUS$8.29m0.64%
$ 85.9m
Asaf Danziger
President18.75yrsUS$7.32m0.18%
$ 24.0m
Jeryl Hilleman
Independent Director2.25yrsUS$414.30k0.0033%
$ 444.2k
David Hung
Independent Director2.42yrsUS$397.47k0.0033%
$ 444.2k
Kinyip Leung
Independent Vice Chairman9yrsUS$389.97k0.069%
$ 9.2m
William Vernon
Lead Independent Director4.42yrsUS$434.30k0.16%
$ 21.0m
Sherilyn S. McCoy
Independent Director2.42yrsUS$408.53k0.0033%
$ 444.2k
Martin Madden
Independent Director3.42yrsUS$409.97k0.012%
$ 1.6m

3.9yrs

Average Tenure

60yo

Average Age

Experienced Board: NVCR's board of directors are considered experienced (3.9 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

NovoCure Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • NovoCure Limited
  • No. 4 The Forum
  • Second Floor
  • Saint Helier
  • JE2 4UF
  • Jersey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVCRNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDOct 2015
38DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:33
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.