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NVTA

Invitae NYSE:NVTA Stock Report

Last Price

US$2.62

Market Cap

US$600.7m

7D

15.9%

1Y

-92.3%

Updated

28 Jun, 2022

Data

Company Financials +
NVTA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends0/6

NVTA Stock Overview

Invitae Corporation, a medical genetics company, integrates genetic information into mainstream medicine to improve healthcare of people in the United States, Canada, and internationally.

Invitae Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Invitae
Historical stock prices
Current Share PriceUS$2.62
52 Week HighUS$35.09
52 Week LowUS$2.08
Beta1.9
1 Month Change-34.83%
3 Month Change-68.81%
1 Year Change-92.31%
3 Year Change-88.66%
5 Year Change-72.57%
Change since IPO-84.63%

Recent News & Updates

Jun 22

Invitae: Coming Out Of The Cash Burn

Invitae, a next-gen healthcare/biotech company, has seen its stock getting hammered due to strong worries about a looming bankruptcy due to reckless cash burn. However, in the last few quarters, the company has started to shift from growth-at-all-costs to focusing on reducing the cash burn, with a $100M annualized reduction in Q1 alone. Invitae continues to target strong long-term growth and to become cash flow positive by 2025. At the current valuation, the risk/reward is shifting significantly such that even a small bet could lead to compelling returns.

Jun 01

Invitae: The Hype Train Crashed As We Warned Last Year

Invitae is a truly hyped-up story stock. When growth is slowing and you have no profitability to show for it, the market's hammering of NVTA stock is well-justified. We urge investors to be cautious in our previous article and beware of its hype. The stock has fallen almost 90% since our article was published. Invitae's underlying metrics continue to look awful amid slowing growth. So don't even bother considering adding a speculative position yet. We reiterate our Hold rating on NVTA stock. Investors are urged to avoid buying into its story thesis.

Shareholder Returns

NVTAUS HealthcareUS Market
7D15.9%4.3%1.7%
1Y-92.3%3.8%-20.4%

Return vs Industry: NVTA underperformed the US Healthcare industry which returned 4% over the past year.

Return vs Market: NVTA underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is NVTA's price volatile compared to industry and market?
NVTA volatility
NVTA Average Weekly Movement16.5%
Healthcare Industry Average Movement9.5%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: NVTA is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: NVTA's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20102,900Sean Georgehttps://www.invitae.com

Invitae Corporation, a medical genetics company, integrates genetic information into mainstream medicine to improve healthcare of people in the United States, Canada, and internationally. The company offers genetic tests in various clinical areas, including hereditary cancer, cardiology, neurology, pediatrics, oncology, metabolic conditions, and rare diseases; digital health solutions; and health data services. It serves patients, healthcare providers, biopharma companies, and other partners.

Invitae Fundamentals Summary

How do Invitae's earnings and revenue compare to its market cap?
NVTA fundamental statistics
Market CapUS$600.74m
Earnings (TTM)-US$451.37m
Revenue (TTM)US$480.52m

1.3x

P/S Ratio

-1.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NVTA income statement (TTM)
RevenueUS$480.52m
Cost of RevenueUS$370.29m
Gross ProfitUS$110.23m
Other ExpensesUS$561.60m
Earnings-US$451.37m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.97
Gross Margin22.94%
Net Profit Margin-93.93%
Debt/Equity Ratio55.6%

How did NVTA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NVTA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NVTA?

Other financial metrics that can be useful for relative valuation.

NVTA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA-2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NVTA's PS Ratio compare to its peers?

NVTA PS Ratio vs Peers
The above table shows the PS ratio for NVTA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.3x
CCRN Cross Country Healthcare
0.4x-14.5%US$775.0m
ACCD Accolade
1.8x14.0%US$559.8m
CSTL Castle Biosciences
6.2x21.1%US$604.0m
INNV InnovAge Holding
0.8x15.8%US$567.8m
NVTA Invitae
1.3x28.6%US$600.7m

Price-To-Sales vs Peers: NVTA is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (2.3x).


Price to Earnings Ratio vs Industry

How does NVTA's PE Ratio compare vs other companies in the US Healthcare Industry?

Price-To-Sales vs Industry: NVTA is good value based on its Price-To-Sales Ratio (1.3x) compared to the US Healthcare industry average (1.4x)


Price to Sales Ratio vs Fair Ratio

What is NVTA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NVTA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio2.6x

Price-To-Sales vs Fair Ratio: NVTA is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).


Share Price vs Fair Value

What is the Fair Price of NVTA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate NVTA's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NVTA's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NVTA's PEG Ratio to determine if it is good value.


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Future Growth

How is Invitae forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVTA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NVTA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NVTA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NVTA's revenue (28.6% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: NVTA's revenue (28.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVTA is forecast to be unprofitable in 3 years.


Discover growth companies

Past Performance

How has Invitae performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-33.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NVTA is currently unprofitable.

Growing Profit Margin: NVTA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NVTA is unprofitable, and losses have increased over the past 5 years at a rate of 33.8% per year.

Accelerating Growth: Unable to compare NVTA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NVTA is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (9.8%).


Return on Equity

High ROE: NVTA has a negative Return on Equity (-15.87%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Invitae's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NVTA's short term assets ($1.0B) exceed its short term liabilities ($167.9M).

Long Term Liabilities: NVTA's short term assets ($1.0B) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: NVTA's net debt to equity ratio (24.8%) is considered satisfactory.

Reducing Debt: NVTA's debt to equity ratio has increased from 47.4% to 55.6% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: NVTA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NVTA has less than a year of cash runway if free cash flow continues to reduce at historical rates of 38.2% each year


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Dividend

What is Invitae current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NVTA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NVTA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NVTA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NVTA's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NVTA has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Sean George (47 yo)

9.83yrs

Tenure

US$8,828,254

Compensation

Dr. Sean Emerson George, Ph.D. is the Co-Founder of InVitae Corporation and has been its Chief Executive Officer since January 9, 2017, President since August 2012. Dr. George served the Chief Operating Of...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD8.83M) is above average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Sean's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: NVTA's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: NVTA's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NVTA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.7%.


Top Shareholders

Company Information

Invitae Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Invitae Corporation
  • Ticker: NVTA
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: US$600.736m
  • Shares outstanding: 229.29m
  • Website: https://www.invitae.com

Number of Employees


Location

  • Invitae Corporation
  • 1400 16th Street
  • San Francisco
  • California
  • 94103
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.