NovoCure Ltd. (NVCR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

LivaNova Plc

AtriCure, Inc.

STAAR Surgical Co.

ICU Medical, Inc.

iRhythm Technologies, Inc.

NovoCure Ltd.

Integer Holdings Corp.

TransMedics Group, Inc.

Pacific Biosciences of California, Inc.

Axonics, Inc.

InMode Ltd.

Why is NovoCure Ltd. ?

With a growth in Net Sales of 5.47%, the company declared Very Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at USD -2.82 MM
RAW MATERIAL COST(Y) Fallen by -5.12% (YoY)
NET SALES(Q) Highest at USD 183.58 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 42.40%, its profits have risen by 17.8%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 42.40% in the last 1 year, much higher than market (S&P 500) returns of 22.36%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NovoCure Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NovoCure Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

NovoCure Ltd.

42.4%

-0.29

80.43%

S&P 500

22.36%

1.70

13.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.80%

EBIT Growth (5y)

-238.30%

EBIT to Interest (avg)

-88.42

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.76

Sales to Capital Employed (avg)

0.64

Tax Ratio

26.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

12.06%

ROE (avg)

0.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.67

EV to EBIT

-6.49

EV to EBITDA

-7.17

EV to Capital Employed

11.13

EV to Sales

1.52

PEG Ratio

Dividend Yield

ROCE (Latest)

-171.54%

ROE (Latest)

-40.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD -2.82 MM

RAW MATERIAL COST(Y)

Fallen by -5.12% (YoY

NET SALES(Q)

Highest at USD 183.58 MM

OPERATING PROFIT(Q)

Highest at USD -6.25 MM

OPERATING PROFIT MARGIN(Q)

Highest at -3.41 %

PRE-TAX PROFIT(Q)

Highest at USD -12.45 MM

NET PROFIT(Q)

Highest at USD -15.66 MM

EPS(Q)

Highest at USD -0.14

-5What is not working for the Company

INTEREST(9M)

At USD 4.29 MM has Grown at inf%

CASH AND EQV(HY)

Lowest at USD 892.28 MM

Here's what is working for NovoCure Ltd.

Operating Cash Flow

Highest at USD -2.82 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 183.58 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD -6.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at -3.41 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD -12.45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD -12.45 MM has Grown at 71.57%

over average net sales of the previous four periods of USD -43.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD -15.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD -15.66 MM has Grown at 63.81%

over average net sales of the previous four periods of USD -43.26 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD -0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -5.12% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 4.31 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for NovoCure Ltd.

Interest

At USD 4.29 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 892.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents