NTRANatera Inc. shows moderate fundamental strength with a significant market presence in genetic diagnostics. However, profitability concerns and negative EPS trends, coupled with mixed technical indicators, suggest a cautious approach. The company operates in a high-growth thematic area, which provides potential but also carries inherent volatility.
Natera operates within the rapidly expanding fields of genetic diagnostics and precision medicine, particularly in non-invasive prenatal testing (NIPT) and oncology. These are strong secular growth themes.
Natera demonstrates strong revenue growth and gross profit margins, indicating effective product delivery. However, persistent net losses, negative EPS, and high operating expenses significantly weigh on profitability. The company's balance sheet appears manageable with increasing cash reserves.
The stock's daily chart shows a general uptrend recently, with price above key moving averages. However, short-term indicators like the RSI are high, suggesting potential for a short-term pause or pullback, while longer-term indicators are mixed.
| Factor | Score |
|---|---|
| Genetic Diagnostics Market Growth | 90 |
| Oncology and Cancer Diagnostics | 85 |
| Innovation in NIPT | 80 |
| Regulatory Landscape & Reimbursement | 60 |
| Competitive Landscape | 70 |
| Factor | Score |
|---|---|
| Valuation | 40 |
| Profitability | 20 |
| Growth | 85 |
| Balance Sheet Health | 85 |
| Cash Flow | 70 |
| Earnings Per Share (EPS) | 15 |
| Factor | Score |
|---|---|
| Trend Analysis | 70 |
| Momentum | 40 |
| Volume Confirmation | 60 |
| Support & Resistance | 65 |
| Volatility | 40 |
Improving Valuation Metrics
The trailing Price-to-Sales (P/S) ratio has improved significantly from 23.5 in 2022 to 13.6 in the trailing twelve months (TTM), suggesting a more attractive valuation relative to revenue.
Positive Revenue Growth Trend
Revenue has shown consistent growth, increasing from $625.49 million in 2021 to $1.697 billion in 2024, indicating a strong top-line expansion.
Consistent Net Losses
The company has reported net losses for all reported periods, including a net loss of $190.43 million in 2024, highlighting significant profitability challenges.
High Price-to-Sales Ratio
Despite recent improvements, the trailing Price-to-Sales (P/S) ratio of 13.6 remains high, especially compared to the TTM Net Income (PE ratio of -126.5), indicating a potentially overvalued stock relative to current profitability.
August 2025
8
Next Earnings Date
H: $-0.40
A: $-0.59
L: $-0.75
H: 495.80M
A: 476.77M
L: 464.00M
Natera, Inc., a diagnostics company, provides molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera molecular residual disease test for assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based genomic profiling test, that provides insight into genomic alterations and biomarkers; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product. It serves independent laboratories, national and regional reference laboratories, medical centers and physician practices, research laboratories, and pharmaceutical companies through its direct sales force, and a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was formerly known as Gene Security Network, LLC and changed its name to Natera, Inc. in January 2012. Natera, Inc. was founded in 2003 and is headquartered in Austin, Texas.
192.78 USD
The 39 analysts offering 1 year price forecasts for NTRA have a max estimate of 251.00 and a min estimate of 37.00.