Natera, Inc.(NTRA) - Stock detail

Natera, Inc.

US
NTRA
Natera, Inc.(Listing date: 07/02/2015)

Natera, Inc. was incorporated in Delaware in January 2007. The company is a diagnostic company with proprietary molecular and bioinformatics technologies that it is applying to transform disease management worldwide. The company's cell-free DNA (cfDNA) technology combines novel molecular analytical methods that can reliably measure many informative regions across the entire genome from samples as small as a single cell, as well as statistical algorithms that incorporate data provided by the broader scientific community to identify genetic variations covering a wide range of serious diseases with high precision and high coverage. The company's goal is to make personalized genetic testing and diagnosis part of the standard of care for protecting health and inform earlier and more targeted interventions to help achieve longer, healthier lives.

AI Value AnalystHold
Overall Rating6/10
Generated at:2026-03-13 17:42:23
Analysis based on 5 financial reports covering periods from 2024-12-31 to 2025-12-31. Data includes quarterly reports from 2025-03-31, 2025-06-30, 2025-09-30, and annual reports for 2024-12-31 and 2025-12-31. Complete financial data available for comprehensive analysis.
Overview

Natera is a molecular diagnostics company with strong revenue growth of 35.9% YoY and improving operational metrics, but continues to operate at a net loss. The company maintains excellent liquidity with current ratio of 3.39 and has a solid market position in genetic testing services.

Valuation
6/10
Profitability
4/10
Financial health
8/10
Operation Advice
  • Hold position and monitor the company's path to profitability.
  • Consider accumulating on further weakness below $180.
  • Price target range of $220-260 based on 12-13x PS multiple on forward estimates.
  • Watch for margin expansion in upcoming quarters.

Valuation

P/E TTM
-103.56
P/E LYR
-168.14
P/B MRQ
25.42
P/S TTM
--
AI Analysis
  • Stock trading at premium multiples with PS-TTM of 11.55x and PB of 25.42x, but current price decline from $256 to $187.85 suggests potential oversold conditions. Valuation challenging due to negative earnings but appears moderately undervalued relative to growth prospects.
  • Price/Sales (PS-TTM): 11.55x
  • Price/Book (PB): 25.42x
  • PE (TTM): -103.56 (negative due to losses)
  • Forward PE: -168.14
  • Current price of $187.85 represents significant decline from recent highs around $256 in early January 2026, suggesting potential oversold conditions
  • Traditional valuation metrics challenging to apply due to negative earnings
  • Conservative Price Target: $210-230 (11-12x PS multiple)
  • Base Case Price Target: $240-260 (12.5-13.5x PS multiple)
  • Optimistic Price Target: $280-300 (14-15x PS multiple)
  • Current price appears moderately undervalued relative to company's growth prospects, though premium valuation warranted given specialized nature of genetic testing portfolio
Valuation trend

Profitability

ROE TTM
-14.32%
Net margin
-9.03%
Gross margin
64.75%
Total revenue
2.31B
AI Analysis
  • Mixed profitability with excellent gross margin of 64.75% but persistent net losses of -$208.16M in 2025. Strong revenue growth of 35.9% YoY and improving margins show positive operational trends despite negative bottom line.
  • Gross Margin: 64.75% (excellent and improving from 60.30% in 2024)
  • Net Margin: -9.03% (improving from -11.22% in 2024)
  • ROE: -14.32% (negative but improving from -19.42%)
  • ROA: -10.26% (negative but improving from -12.28%)
  • Strong top-line growth with consistent 30%+ revenue growth rates across recent quarters
  • Gross profit increased significantly (45.94% YoY growth to $1.49B)
  • Indicates improving operational efficiency
  • Persistent net losses (-$208.16M in 2025) reflect company's continued investment in growth and R&D
  • Characteristic of growth-stage diagnostic companies
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM---5.50%-13.75%-20.87%-14.32%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue1.70B501.83M1.05B1.64B2.31B

Financial health

Debt/Asset
28.60%
Current ratio
3.39
Quick ratio
3.24
Cash ratio
3.24
AI Analysis
  • Solid financial position with strong liquidity metrics including current ratio of 3.39 and quick ratio of 3.24. Moderate debt-to-asset ratio of 28.60% with impressive revenue growth from $1.70B to $2.31B in 2025.
  • Current Ratio: 3.39 (exceeds healthy threshold of 2.0)
  • Quick Ratio: 3.24 (indicates strong short-term liquidity)
  • Debt-to-Asset Ratio: 28.60% (moderate leverage, manageable debt level)
  • Revenue growth impressive, increasing from $1.70B in 2024 to $2.31B in 2025 (35.9% year-over-year growth)
  • Demonstrates strong market demand for Natera's diagnostic services
  • Company continues to operate at net loss position, though rate of loss improvement shows positive trends in recent quarters
  • Strong liquidity position provides financial stability during growth phase
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset28.02%28.44%29.08%31.25%28.60%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio4.003.873.723.273.39