NasdaqGS:NVCR

Stock Analysis Report

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.

Snowflake

High growth potential with adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.9%

NVCR

1.4%

US Medical Equipment

0.4%

US Market


1 Year Return

163.1%

NVCR

20.2%

US Medical Equipment

13.1%

US Market

Return vs Industry: NVCR exceeded the US Medical Equipment industry which returned 20.2% over the past year.

Return vs Market: NVCR exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

NVCRIndustryMarket
7 Day7.9%1.4%0.4%
30 Day3.2%3.1%4.0%
90 Day-13.4%2.3%7.4%
1 Year163.1%163.1%21.3%20.2%15.6%13.1%
3 Year768.2%768.2%82.8%77.2%48.2%38.6%
5 Yearn/a116.3%92.8%62.6%44.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NVCR ($81.18) is trading below our estimate of fair value ($208.61)

Significantly Below Fair Value: NVCR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NVCR is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: NVCR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NVCR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NVCR is overvalued based on its PB Ratio (42.2x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is NovoCure forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

68.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVCR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: NVCR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NVCR's is expected to become profitable in the next 3 years.

Revenue vs Market: NVCR's revenue (23.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NVCR's revenue (23.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NVCR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NovoCure performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVCR has high quality earnings.

Growing Profit Margin: NVCR's current net profit margins (-8.4%) are higher than last year (-25.4%).


Past Earnings Growth Analysis

Earnings Trend: NVCR is unprofitable, but has reduced losses over the past 5 years at a rate of 17.9% per year.

Accelerating Growth: Unable to compare NVCR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NVCR is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (25%).


Return on Equity

High ROE: NVCR has a negative Return on Equity (-14.25%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NovoCure's financial position?


Financial Position Analysis

Short Term Liabilities: NVCR's short term assets ($406.9M) exceeds its short term liabilities ($80.4M)

Long Term Liabilities: NVCR's short term assets (406.9M) exceeds its long term liabilities (173.1M)


Debt to Equity History and Analysis

Debt Level: NVCR's debt to equity ratio (76.4%) is considered high

Reducing Debt: NVCR's debt to equity ratio has increased from 0.3% to 76.4% over the past 5 years.


Balance Sheet

Inventory Level: NVCR has a low level of unsold assets or inventory.

Debt Coverage by Assets: NVCR's debt is covered by short term assets (assets are 2.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NVCR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NVCR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 98.8% per year.


Next Steps

Dividend

What is NovoCure's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NVCR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NVCR's dividend yield against the top 25% of dividend payers, as the company has not reported any 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

What is the CEO of NovoCure's salary, the management and board of directors tenure and is there insider trading?

9.8yrs

Average management tenure


CEO

Asaf Danziger (53yo)

17.8yrs

Tenure

US$4,570,294

Compensation

Mr. Asaf Danziger has been the Chief Executive Officer and Director of Novocure Limited since 2002 and 2012 respectively and also serves as its President. Mr. Danziger joined NovoCure in 2002 with signific ...


CEO Compensation Analysis

Compensation vs Market: Asaf 's total compensation ($USD4.57M) is below average for companies of similar size in the US market ($USD6.77M).

Compensation vs Earnings: Asaf 's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

9.8yrs

Average Tenure

57yo

Average Age

Experienced Management: NVCR's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

60yo

Average Age

Experienced Board: NVCR's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: NVCR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$46,00003 Sep 19
Asaf Danziger
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$92.00
SellUS$9,103,10003 Sep 19
William Vernon
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares100,000
Max PriceUS$91.03
SellUS$1,353,06326 Aug 19
Pritesh Shah
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares13,835
Max PriceUS$97.80
SellUS$2,552,52303 Jun 19
William Doyle
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares48,100
Max PriceUS$53.07
SellUS$100,88131 May 19
William Doyle
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,900
Max PriceUS$53.10
SellUS$1,490,38610 May 19
William Doyle
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares31,460
Max PriceUS$47.37
SellUS$1,530,11209 May 19
William Doyle
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares32,098
Max PriceUS$47.67
SellUS$1,395,91507 May 19
William Doyle
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares29,038
Max PriceUS$48.07

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Management Team

  • Bill Doyle (57yo)

    Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: US$4.56m
  • Asaf Danziger (53yo)

    President

    • Tenure: 17.8yrs
    • Compensation: US$4.57m
  • Todd Longsworth (44yo)

    Chief Compliance Officer & General Counsel

    • Tenure: 0yrs
  • Yoram Palti (81yo)

    Founder & CTO

    • Tenure: 19.8yrs
    • Compensation: US$282.51k
  • Mike Ambrogi (56yo)

    Chief Operating Officer

    • Tenure: 9.8yrs
    • Compensation: US$2.25m
  • Wilco Groenhuysen (61yo)

    Chief Financial Officer

    • Tenure: 7.8yrs
    • Compensation: US$3.46m
  • Ely Benaim (58yo)

    Chief Medical Officer

    • Tenure: 0.6yrs
  • Pritesh Shah

    Chief Commercial Officer

    • Tenure: 0yrs
    • Compensation: US$3.47m
  • Ashley Cordova

    Vice President of Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • Bill Doyle (57yo)

    Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: US$4.56m
  • Charles Phillips (71yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$457.23k
  • Jeri Hilleman (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$701.13k
  • David Hung (61yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$777.18k
  • Asaf Danziger (53yo)

    President

    • Tenure: 17.8yrs
    • Compensation: US$4.57m
  • Gabe Leung (57yo)

    Vice Chairman

    • Tenure: 8.1yrs
    • Compensation: US$416.98k
  • Tony Vernon (63yo)

    Lead Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$473.81k
  • Sheri McCoy (60yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$781.56k
  • Martin Madden (58yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$624.93k

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$8.034b
  • Shares outstanding: 98.97m
  • 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, a Tumor Treating  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:43
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.