Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 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.
C · Mixed — selective
Forensic grade
Distress
Financial health
-2.3
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-39.4%
ROE
$1.8B
Market cap
NovoCure Ltd earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is -2.3, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+40.3%Accruals ratio.Net operating assets grew +40.3% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -24% of net operating assets.
-25%Return on invested capital.Return on invested capital is -25% and slipping from -8% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+2.2%/yrShare-count dilution.Diluted share count changed +7% over the last 3 years to FY2025 (+2.2%/yr). The count is GROWING — existing holders are being diluted. That's ~2.2% 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 FY2022 has been diluted ~7%.
50d DSOReceivables vs revenue.Days sales outstanding moved from 45 to 50 days FY2024→FY2025 (receivables +20% vs revenue +8%). Receivables are creeping up relative to sales — watch the trend.
16% of revStock-based comp load.Stock-based compensation ran 16% of revenue in FY2025 — about $0.94 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-20.8%
Debt / Equity0.57x
Free Cash Flow$-75.7M
Latest Revenue$655.4M
Return on Equity-40.0%
Revenue Growth YoY+8.3%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on NovoCure Ltd:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about NVCR's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown