Loading...

Natera

DB:45E
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
45E
DB
$1B
Market Cap
  1. Home
  2. DE
  3. Pharmaceuticals & Biotech
Company description

Natera, Inc., a diagnostics company, provides preconception and prenatal genetic testing services. The last earnings update was 41 days ago. More info.


Add to Portfolio Compare Print
  • Natera has significant price volatility in the past 3 months.
45E Share Price and Events
7 Day Returns
2.3%
DB:45E
0.4%
DE Biotechs
0.8%
DE Market
1 Year Returns
85.3%
DB:45E
-5.6%
DE Biotechs
-4.5%
DE Market
45E Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Natera (45E) 2.3% 1.1% 44.7% 85.3% 88.6% -
DE Biotechs 0.4% 7.3% -6.5% -5.6% 51.9% 10.5%
DE Market 0.8% 6.9% 8.1% -4.5% 10.4% 13.9%
1 Year Return vs Industry and Market
  • 45E outperformed the Biotechs industry which returned -5.6% over the past year.
  • 45E outperformed the Market in Germany which returned -4.5% over the past year.
Price Volatility
45E
Industry
5yr Volatility vs Market

45E Value

 Is Natera undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Natera to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Natera.

DB:45E Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:45E
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.45
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.453 (1 + (1- 21%) (9.58%))
1.377
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.377 * 5.96%)
8.44%

Discounted Cash Flow Calculation for DB:45E using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Natera is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:45E DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.44%)
2019 -110.16 Analyst x2 -101.59
2020 -62.77 Analyst x2 -53.38
2021 19.06 Analyst x1 14.95
2022 25.98 Est @ 36.33% 18.79
2023 32.61 Est @ 25.5% 21.75
2024 38.45 Est @ 17.92% 23.65
2025 43.30 Est @ 12.61% 24.56
2026 47.15 Est @ 8.9% 24.67
2027 50.12 Est @ 6.3% 24.18
2028 52.36 Est @ 4.47% 23.30
Present value of next 10 years cash flows $20.88
DB:45E DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $52.36 × (1 + 0.23%) ÷ (8.44% – 0.23%)
$639.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $639.41 ÷ (1 + 8.44%)10
$284.49
DB:45E Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $20.88 + $284.49
$305.37
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $305.37 / 68.39
$4.47
DB:45E Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:45E represents 0.88939x of NasdaqGS:NTRA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88939x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 4.47 x 0.88939
€3.97
Value per share (EUR) From above. €3.97
Current discount Discount to share price of €16.77
= -1 x (€16.77 - €3.97) / €3.97
-322.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Natera is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Natera's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Natera's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:45E PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-2.22
NasdaqGS:NTRA Share Price ** NasdaqGS (2019-04-25) in USD $18.86
Europe Biotechs Industry PE Ratio Median Figure of 30 Publicly-Listed Biotechs Companies 22.58x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Natera.

DB:45E PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NTRA Share Price ÷ EPS (both in USD)

= 18.86 ÷ -2.22

-8.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Natera is loss making, we can't compare its value to the Europe Biotechs industry average.
  • Natera is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Natera's expected growth come at a high price?
Raw Data
DB:45E PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -8.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
31.7%per year
Europe Biotechs Industry PEG Ratio Median Figure of 22 Publicly-Listed Biotechs Companies 1.33x
Germany Market PEG Ratio Median Figure of 268 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Natera, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Natera's assets?
Raw Data
DB:45E PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $0.52
NasdaqGS:NTRA Share Price * NasdaqGS (2019-04-25) in USD $18.86
Germany Biotechs Industry PB Ratio Median Figure of 15 Publicly-Listed Biotechs Companies 3.83x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:45E PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NTRA Share Price ÷ Book Value per Share (both in USD)

= 18.86 ÷ 0.52

36.41x

* Primary Listing of Natera.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Natera is overvalued based on assets compared to the DE Biotechs industry average.
X
Value checks
We assess Natera's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Natera has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

45E Future Performance

 How is Natera expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Natera expected to grow at an attractive rate?
  • Natera's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Natera's earnings growth is expected to exceed the Germany market average.
  • Natera's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:45E Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:45E Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 31.7%
DB:45E Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 13.1%
Germany Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 47.5%
Germany Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 26.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:45E Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:45E Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 485 3 1
2022-12-31 425 -29 1
2021-12-31 408 -23 -71 5
2020-12-31 347 -78 -114 6
2019-12-31 286 -86 -145 6
DB:45E Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 258 -71 -128
2018-09-30 244 -85 -142
2018-06-30 235 -93 -140
2018-03-31 224 -71 -136
2017-12-31 210 -98 -138
2017-09-30 207 -99 -128
2017-06-30 205 -92 -126
2017-03-31 205 -99 -121
2016-12-31 213 -74 -100
2016-09-30 221 -49 -81
2016-06-30 212 -42 -72
2016-03-31 205 -35 -69

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Natera's earnings are expected to grow significantly at over 20% yearly.
  • Natera's revenue is expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:45E Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Natera Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:45E Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.05 0.05 0.05 1.00
2022-12-31 -0.46 -0.46 -0.46 1.00
2021-12-31 -1.03 -0.22 -1.79 5.00
2020-12-31 -1.71 -1.33 -2.25 6.00
2019-12-31 -2.26 -2.03 -2.42 6.00
DB:45E Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -2.22
2018-09-30 -2.55
2018-06-30 -2.60
2018-03-31 -2.53
2017-12-31 -2.58
2017-09-30 -2.42
2017-06-30 -2.41
2017-03-31 -2.31
2016-12-31 -1.95
2016-09-30 -1.60
2016-06-30 -1.48
2016-03-31 -1.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Natera will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Natera's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Natera has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

45E Past Performance

  How has Natera performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Natera's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Natera does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Natera's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Natera's 1-year growth to the Europe Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Natera's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Natera Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:45E Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 257.65 -128.15 154.87 49.81
2018-09-30 244.05 -142.22 162.68 50.06
2018-06-30 234.68 -140.47 158.78 50.28
2018-03-31 223.90 -135.71 155.65 50.21
2017-12-31 209.63 -137.63 155.31 50.06
2017-09-30 206.87 -128.32 143.72 48.50
2017-06-30 204.85 -126.47 144.18 47.24
2017-03-31 204.55 -120.56 143.10 45.75
2016-12-31 212.51 -100.33 135.93 41.86
2016-09-30 220.69 -80.82 129.02 38.41
2016-06-30 211.72 -72.43 121.95 34.40
2016-03-31 204.82 -68.96 116.81 30.84
2015-12-31 190.36 -70.28 109.64 27.71
2015-09-30 187.33 -46.06 97.54 24.21
2015-06-30 188.68 -28.26 85.98 21.24
2015-03-31 179.43 -5.54 71.80 18.62
2014-12-31 159.29 -5.15 62.94 17.29
2014-09-30 132.65 -11.17 55.06 16.44
2014-03-31 77.82 -28.92 39.92 13.46
2013-12-31 55.17 -37.11 31.61 11.55
2012-12-31 14.25 -76.17 15.33 6.98

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Natera has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Natera has efficiently used its assets last year compared to the Europe Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Natera improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Natera's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Natera has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

45E Health

 How is Natera's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Natera's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Natera is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Natera's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Natera's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Natera Company Filings, last reported 3 months ago.

DB:45E Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 32.16 123.51 153.87
2018-09-30 56.57 123.42 165.43
2018-06-30 -22.04 123.34 83.21
2018-03-31 -3.88 123.26 113.70
2017-12-31 25.42 123.18 118.87
2017-09-30 30.18 123.30 146.23
2017-06-30 50.91 50.02 102.13
2017-03-31 73.67 49.81 115.78
2016-12-31 106.48 49.62 146.12
2016-09-30 140.31 49.47 183.04
2016-06-30 163.82 49.33 215.20
2016-03-31 181.60 42.21 230.58
2015-12-31 184.77 42.09 230.53
2015-09-30 206.06 21.28 222.58
2015-06-30 42.81 27.77 62.24
2015-03-31 60.50 28.03 80.35
2014-12-31 69.28 26.81 87.18
2014-09-30 11.48 22.57 22.32
2014-03-31 6.71 25.53 22.73
2013-12-31 13.69 24.31 30.50
2012-12-31 -125.80 131.75 5.75
  • Natera's level of debt (384%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (178.7% vs 384% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Natera has sufficient cash runway for 2.1 years based on current free cash flow.
  • Natera has sufficient cash runway for 1.9 years if free cash flow continues to grow at historical rates of 16.1% each year.
X
Financial health checks
We assess Natera's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Natera has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

45E Dividends

 What is Natera's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Natera dividends.
If you bought €2,000 of Natera shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Natera's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Natera's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:45E Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Europe Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 0.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:45E Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Natera has not reported any payouts.
  • Unable to verify if Natera's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Natera's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Natera has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Natera's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Natera afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Natera has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

45E Management

 What is the CEO of Natera's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Chapman
COMPENSATION $2,042,300
AGE 39
TENURE AS CEO 0.3 years
CEO Bio

Mr. Steve Chapman has been Chief Executive Officer at Natera, Inc. since January 02, 2019 and serves as President and Director at Natera, Inc. since January 2019. Mr. Chapman served as Chief Operating Officer of Natera, Inc. from July 2017 until January 07, 2019 and served as its Chief Commercial Officer since March 2, 2017 until August 9, 2017. Mr. Chapman served as Senior Vice President of Commercial Operations at Natera, Inc. until March 2, 2017. Mr. Chapman has been with Natera since December 2010 and has held positions including Vice President of Sales and Vice President, Commercial Operations. Mr. Chapman joined Natera from Genzyme, where his team was responsible for over 70 million dollars of revenue in the Northeastern United States. He established the largest network of physicians in the world routinely screening Fragile X and led Genzyme’s sales initiative into population screening for Fragile X. Mr. Chapman proved to be a visionary in 2005 when he brought carrier screening of Spinal Muscular Atrophy (SMA) to the forefront of efforts at Genzyme. He played a critical role in the groundbreaking launch of SMA carrier screening in 2008 and was responsible for over 35% of the initial uptake in the United States during the first 6 months of the launch. Steve has been the direct recipient of 27 sales awards, most notably a two-time winner of the prestigious Alpine Award, which was given to one person throughout Genzyme Corporation, which has over 8,000 employees world wide. This award recognized outstanding achievement and innovation and the recipient was hand selected by CEO Henri Teermer. Mr. Chapman was at UCLA in the Department of Human Genetics working on Multiple Sclerosis. During his time at UCLA, he contributed to the selection process and design of oligo nucleotide arrays used to identify SNP’s associated with Multiple Sclerosis. Steve holds a Bachelors of Science in Microbiology, Immunology and Molecular Genetics from University of California, Los Angeles.

CEO Compensation
  • Insufficient data for Steve to compare compensation growth.
  • Steve's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Natera management team in years:

0.8
Average Tenure
45
Average Age
  • The average tenure for the Natera management team is less than 2 years, this suggests a new team.
Management Team

Matt Rabinowitz

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$3M
AGE
45

Steve Chapman

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
39
TENURE
0.3 yrs

Mike Brophy

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
38
TENURE
2.2 yrs

Jonathan Sheena

TITLE
Co-Founder
COMPENSATION
$990K
AGE
45

Bob Schueren

TITLE
Chief Operating Officer
AGE
56
TENURE
0.3 yrs

Daniel Rabinowitz

TITLE
Secretary & General Counsel

Phil Grinnell

TITLE
Vice President of Sales
TENURE
3.1 yrs

Ramesh Hariharan

TITLE
Vice President of Marketing & Medical Education
TENURE
3.1 yrs

Damon Silvestry

TITLE
Senior Vice President of Operations & People
TENURE
0.8 yrs

Styrmir Sigurjonsson

TITLE
Senior Vice President of R&D - Data Science & Engineering
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Natera board of directors in years:

3.9
Average Tenure
57
Average Age
  • The tenure for the Natera board of directors is about average.
Board of Directors

Matt Rabinowitz

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$3M
AGE
45
TENURE
3.9 yrs

Steve Chapman

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
39
TENURE
0.3 yrs

Jonathan Sheena

TITLE
Co-Founder
COMPENSATION
$990K
AGE
45
TENURE
12.3 yrs

Todd Cozzens

TITLE
Director
COMPENSATION
$136K
AGE
62
TENURE
8.3 yrs

Gail Marcus

TITLE
Director
COMPENSATION
$118K
AGE
61
TENURE
2.1 yrs

Roelof Botha

TITLE
Lead Independent Director
COMPENSATION
$144K
AGE
45

Herm Rosenman

TITLE
Director
COMPENSATION
$117K
AGE
71
TENURE
2.2 yrs

Jim Healy

TITLE
Director
COMPENSATION
$131K
AGE
53
TENURE
4.4 yrs

Ted Driscoll

TITLE
Director
COMPENSATION
$121K
AGE
65
TENURE
12.3 yrs

Roy Baynes

TITLE
Director
AGE
63
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
21. Sep 18 Sell Matthew Rabinowitz Individual 19. Sep 18 21. Sep 18 -212,001 €20.54 €-4,309,644
17. Aug 18 Sell Claremont Creek Ventures Company 15. Aug 18 15. Aug 18 -4,880 €21.70 €-105,909
02. Jun 18 Sell Savvy Properties, L.P Company 31. May 18 31. May 18 -1,361 €9.94 €-13,533
17. May 18 Sell Claremont Creek Ventures Company 15. May 18 16. May 18 -23,372 €9.89 €-229,843
17. May 18 Sell Randall Hawks Individual 15. May 18 16. May 18 -1,655 €9.89 €-16,275
17. May 18 Sell Claremont Creek Ventures Company 14. May 18 14. May 18 -11,685 €9.59 €-112,077
17. May 18 Sell Randall Hawks Individual 14. May 18 14. May 18 -828 €9.59 €-7,942
X
Management checks
We assess Natera's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Natera has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

45E News

Simply Wall St News

45E Company Info

Description

Natera, Inc., a diagnostics company, provides preconception and prenatal genetic testing services. It primarily offers Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus with a blood draw from the mother; Vistara, a single-gene mutations screening test to identify single-gene disorder; Horizon carrier screening to determine carrier status for various genetic diseases that could be passed on to the carrier’s children; and Spectrum pre-implantation genetic screening and Spectrum pre-implantation genetic diagnosis to analyze chromosomal anomalies or inherited genetic conditions during an in vitro fertilization cycle. The company also provides Anora products of conception test to analyze fetal chromosomes to understand the cause of miscarriage; and non-invasive paternity testing products to determine paternity by analyzing the fragments of fetal deoxyribonucleic acid in a pregnant mother's blood and a blood sample from the alleged father. In addition, it offers Constellation, a cloud-based software product that allows laboratory customers to gain access through the cloud to the company’s algorithms and bioinformatics in order to validate and launch tests; Evercord, a cord blood and cord tissue processing and storage service; and Signatera, a circulating tumor DNA technology that analyzes and tracks mutations to an individual’s tumor. The company offers products through its direct sales force, as well as through a network of approximately 100 laboratory and distribution partners in the United States and internationally. Natera, Inc. has research collaborations with the Institut Jules Bordet and Fox Chase Cancer Center. The company was formerly known as Gene Security Network, Inc. and changed its name to Natera, Inc. in 2012. Natera, Inc. was founded in 2003 and is headquartered in San Carlos, California.

Details
Name: Natera, Inc.
45E
Exchange: DB
Founded: 2003
$1,158,030,714
68,390,974
Website: http://www.natera.com
Address: Natera, Inc.
201 Industrial Road,
Suite 410,
San Carlos,
California, 94070,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NTRA Common Stock Nasdaq Global Select US USD 02. Jul 2015
DB 45E Common Stock Deutsche Boerse AG DE EUR 02. Jul 2015
Number of employees
Current staff
Staff numbers
975
Natera employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 22:40
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/03/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.