Piotroski F-Score of 3 is low, which usually implies poor business operation.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
NovoCure has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
The historical rank and industry rank for NovoCure's Piotroski F-Score or its related term are showing as below:
NVCR'
s Piotroski F-Score Range Over the Past 10 Years
Min: 3 Med: 5 Max: 8
Current: 3
During the past 10 years, the highest Piotroski F-Score of NovoCure was 8. The lowest was 3. And the median was 5.
NovoCure Piotroski F-Score Historical Data
The historical data trend for NovoCure's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
NovoCure Annual Data
Trend
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Piotroski F-Score
3.00
7.00
6.00
5.00
4.00
NovoCure Quarterly Data
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Piotroski F-Score
3.00
3.00
3.00
4.00
3.00
Competitive Comparison
For the Medical Devices subindustry, NovoCure's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NovoCure Piotroski F-Score Distribution
For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where NovoCure's Piotroski F-Score falls in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.
How is the Piotroski F-Score calculated?
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
NovoCure's current Net Income (TTM) was -140.9.
==> Negative ==> Score 0.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
NovoCure's return on assets of this year was -0.1225411. NovoCure's return on assets of last year was -0.05514083.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Score 1 if CFROA > ROA, 0 if CFROA <= ROA.
NovoCure's current Net Income (TTM) was -140.9. NovoCure's current Cash Flow from Operations (TTM) was 17.7.
==> 17.7 > -140.9 ==> CFROA > ROA ==> Score 1.
Funding
Question 5. Change in Gearing or Leverage
Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.
Score 0 if this year's gearing is higher, 1 otherwise.
NovoCure's gearing of this year was 0.50084443. NovoCure's gearing of last year was 0.51825548.
==> This year is lower or equal to last year. ==> Score 1.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
NovoCure's current ratio of this year was 7.31973786. NovoCure's current ratio of last year was 8.45532438.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
NovoCure's number of shares in issue this year was 105.667. NovoCure's number of shares in issue last year was 104.186.
==> There is larger number of shares in issue this year. ==> Score 0.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
NovoCure's gross margin of this year was 0.77653668. NovoCure's gross margin of last year was 0.78393257.
==> Last year's gross margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
NovoCure's asset turnover of this year was 0.45424314. NovoCure's asset turnover of last year was 0.50381031.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
=
Que. 1
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Que. 2
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Que. 3
+
Que. 4
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Que. 9
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0
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1
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1
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1
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0
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0
=
3
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
NovoCure has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
NovoCure (NAS:NVCR) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
NovoCure Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of NovoCure's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
NovoCure Ltd serves in the healthcare sector of the United States. Its business involves commercial-stage oncology operations involving therapies to cure critical tumors. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. NovoCure derives its major revenues in the United States.
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