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:2026-04-24 17:41:36
Analysis based on 5 financial reports: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Data includes company basic information, financial condition assessment, profitability analysis, and valuation analysis. All financial metrics are calculated from reported financial statements.
Overview

Natera, Inc. is a high-growth diagnostics company in the genetic testing market, showing exceptional revenue growth but persistent net losses. The company has a solid balance sheet with good liquidity and manageable debt, but remains in a high-investment, pre-profitability phase. Overall fundamental conditions reflect a classic high-risk, high-potential growth story.

Valuation
5/10
Profitability
3/10
Financial health
6/10
Operation Advice
  • Maintain existing positions to capture long-term growth potential, but acknowledge high volatility and risk.
  • New investors should wait for a clearer path to profitability or a more attractive entry point.
  • The stock shows potential short-term undervaluation versus recent history but remains richly valued on an absolute basis.

Valuation

P/E TTM
-103.56
P/E LYR
-168.14
P/B MRQ
25.42
P/S TTM
--
AI Analysis
  • Valuation must be based on sales multiples due to lack of earnings. The stock trades at a high PS ratio of 12.61, reflecting market pricing of exceptional growth. Current price appears moderately undervalued relative to recent trading history and reasonable sales-based valuation range, but remains richly valued on an absolute basis.
  • Traditional P/E-based valuation is not applicable due to lack of earnings.
  • Stock trades at a high PS-TTM of 12.61, reflecting market pricing of exceptional revenue growth and future potential.
  • PB ratio of 25.42 is very high, indicating market value is heavily based on intangible assets.
  • Recent 60-day trading range is $181.00 to $256.36, with current price at $203.75 near the lower end.
  • Reasonable price range based on PS ratio of 10x-15x is approximately $192 to $288.
  • Current price suggests the stock is moderately undervalued relative to its own recent trading history and sales-based valuation.
  • Fundamental 12-month target price is approximately $275, based on assumed FY2026 revenue growth and PS multiple of 11.5x.
Valuation trend

Profitability

ROE TTM
-14.32%
Net margin
-9.03%
Gross margin
64.75%
Total revenue
2.31B
AI Analysis
  • Profitability profile shows strong top-line growth with accelerating revenue but persistent bottom-line losses. Gross margins are healthy and improving, but high operating expenses lead to negative net margins and negative return metrics.
  • Revenue growth is exceptional and accelerating, with FY2025 revenue of $2.31B representing 35.90% year-over-year increase.
  • FY2024 revenue growth was 56.75%, indicating strong market demand and successful commercial execution.
  • Gross margin is healthy and improving, reaching 64.75% in FY2025 from 60.30% in FY2024.
  • High gross margin suggests pricing power and scalable operations.
  • High operating expenses (R&D, sales & marketing) completely offset gross profit, leading to negative net margin.
  • Net margin for FY2025 is -9.03%.
  • Net Income Attributable to Shareholders has been negative for all reported periods, with loss of $208.16M for FY2025.
  • ROE of -14.32% and ROA of -10.26% are negative, confirming company is currently destroying shareholder value from accounting profit standpoint.
  • Path to future profitability is the critical investment question.
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
  • Financial health shows strength in liquidity and manageable debt structure, but core issue is persistent cash burn due to substantial net losses. Company is in high-investment, growth-focused phase that consumes cash.
  • Balance sheet appears strong from liquidity perspective.
  • Current ratio of 3.39 and quick ratio of 3.24 indicate ample short-term assets to cover liabilities.
  • Debt level is moderate with Debt-to-Asset Ratio of 28.60%, suggesting manageable capital structure not overly reliant on debt.
  • Core issue is persistent and substantial net losses.
  • Company is not yet generating operating profits.
  • Company is in high-investment, growth-focused phase that consumes cash.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset28.02%28.44%29.08%31.25%28.60%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio4.003.873.723.273.39