Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Sep 25, 2026
Novocure Ltd (NVCR)
A forensic read on Novocure Ltd built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Grey Zone
Financial health
1.2
Distress distance
Clean
Earnings quality
4
Forensic signals
-12.8
P / E (ttm)
-40.0%
ROE
$1.9B
Market cap
0.00%
Dividend yield
8.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Novocure Ltd earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 1.2, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+40.3%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +40.3% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by receivables up +20% against revenue +8% and inventory up +17% against +22% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 24% of net operating assets, against an accruals ratio of 40.3%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
-24.9%
FY2025
Return on invested capital.Return on invested capital is -24.9% in the latest fiscal year, against -25.3% in FY2023, having run between -42.0% and -24.9% across FY2023–FY2025 with no direction held. After-tax operating profit was ($184M) in FY2023 and ($122M) in FY2025, with operating income at -45.7% of revenue in FY2023, -28.2% in FY2024 and -23.5% in FY2025. The capital base behind it came down -33% across FY2023–FY2025, from $726M to $488M, so this is a return struck on a smaller base rather than a record of money put to work.
+2.4%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +5% over the last 2 years to FY2025 (+2.4%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~2.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~5%.
Key fundamentals
Latest Revenue$655.4M
Revenue Growth YoY+8.3%
Revenue CAGR (2yr)+13.4%
Net Margin-20.8%
Free Cash Flow-$75.7M
Return on Equity-40.0%
Debt / Equity0.57x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Novocure Ltd's actual 10-K/10-Q/8-K filings?
Stock-based comp load.Stock-based compensation ran 16% of revenue in FY2025 — about $0.94 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 2.4% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.