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 Rating4.7/10
Generated at:2026-05-07 17:41:29
Analysis based on 5 financial reports: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Data includes 60-day trading data with price range from $181.00 to $256.00, closing at $219.82 on 2026-05-08. Analysis covers company basic information, financial condition, profitability, and valuation metrics.
Overview

Natera, Inc. (NTRA) is a diagnostics company with exceptional revenue growth and strong gross margin expansion, operating in a large addressable market. The company demonstrates robust financial health with strong liquidity and manageable debt. However, it faces persistent net losses and negative return metrics, with a rich valuation that prices in future growth expectations. The stock exhibits notable volatility, reflecting market uncertainty about its path to profitability.

Valuation
3/10
Profitability
4/10
Financial health
7/10
Operation Advice
  • Existing investors should hold and tolerate volatility while waiting for the profitability inflection point.
  • New investors should wait for either a more attractive entry point (lower valuation) or clearer signs of sustained margin improvement and narrowing losses before considering a Buy.
  • Avoid traditional earnings-based valuation models due to persistent losses; focus on sales multiples and growth trajectory.

Valuation

P/E TTM
-103.56
P/E LYR
-168.14
P/B MRQ
25.42
P/S TTM
--
AI Analysis
  • Valuation metrics reflect a premium pricing for growth despite current losses, with a high PS ratio of 13.61 and extremely high PB ratio of 25.42. The stock is not undervalued by traditional fundamental metrics and is priced for perfection in terms of future growth expectations.
  • Price-to-Sales (PS-TTM) ratio of 13.61 is very high, indicating the market values the company at over 13 times its trailing twelve-month revenue.
  • Price-to-Book (PB) ratio of 25.42 is extremely high, signaling market value is heavily based on intangible assets rather than tangible book value.
  • Price-to-Earnings (PE) ratios are negative (-168.14 forward, -103.56 trailing) due to net losses, making traditional PE analysis irrelevant.
  • Current closing price of $219.82 sits within the recent 60-day range but near the higher end, suggesting recent positive momentum.
  • Valuation is primarily driven by sales multiples and future growth expectations due to lack of earnings.
  • A fundamental target price cannot be derived from earnings-based models (DCF, PE) due to persistent losses.
  • Any price assessment is inherently speculative and based on a premium sales multiple.
  • If market applied PS multiple between 10x-15x on TTM revenue (~$2.31B), implied market cap range would be ~$23.1B to ~$34.7B.
  • Current PS of 13.61 places valuation in upper-middle of that speculative range.
  • The stock is not undervalued by traditional fundamental metrics; it is priced for perfection in terms of future growth and eventual profitability.
Valuation trend

Profitability

ROE TTM
-13.70%
Net margin
-12.21%
Gross margin
64.72%
Total revenue
696.64M
AI Analysis
  • Natera exhibits a high-growth yet unprofitable profile with exceptional revenue growth of 35.90% year-over-year and improving gross margins, but persistent net losses and negative return metrics indicate it is currently destroying shareholder value from an accounting profitability standpoint.
  • Revenue growth is exceptional, with annual revenue for 2025 reaching $2.31B, representing 35.90% year-over-year increase.
  • This follows even higher growth of 56.75% in 2024, with quarterly data confirming consistent trend.
  • Gross margin expanded to 64.75% in 2025 from 60.30% in 2024, indicating better pricing power or cost control.
  • Despite strong revenue growth and improving gross margins, company remains deeply unprofitable at net level.
  • Net loss for 2025 was -$208.16M, slightly wider than -$190.43M loss in 2024.
  • Net margin was -9.03%.
  • Return on Equity (ROE) of -14.32% and Return on Assets (ROA) of -10.26% are negative.
  • Negative return metrics confirm company is currently destroying shareholder value from accounting profitability standpoint.
  • Path to future positive ROE is dependent on achieving net profitability.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM---13.75%-20.87%-14.32%-13.70%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue501.83M1.05B1.64B2.31B696.64M

Financial health

Debt/Asset
32.14%
Current ratio
2.96
Quick ratio
2.83
Cash ratio
2.83
AI Analysis
  • The company's financial health appears robust in terms of liquidity with strong current and quick ratios, but strained by profitability with moderate leverage. Strong liquidity suggests no immediate cash crunch, supporting ongoing operations and growth initiatives.
  • Current ratio of 3.39 and quick ratio of 3.24 are exceptionally strong, indicating more than sufficient short-term assets to cover liabilities.
  • Debt-to-asset ratio of 28.60% suggests moderate level of leverage, which is manageable.
  • Strong liquidity ratios suggest company is not facing immediate cash crunch.
  • Positive liquidity position supports funding ongoing operations and growth initiatives despite losses.
  • Financial health appears robust in terms of liquidity but strained by profitability.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset28.44%29.08%31.25%28.60%32.14%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio3.873.723.273.392.96