NasdaqGS:NTRA

Stock Analysis Report

Executive Summary

Natera, Inc. provides preconception and prenatal genetic testing services.

Snowflake

Fundamentals

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Natera's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTRA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.2%

NTRA

1.7%

US Biotechs

0.4%

US Market


1 Year Return

145.8%

NTRA

8.4%

US Biotechs

13.1%

US Market

Return vs Industry: NTRA exceeded the US Biotechs industry which returned 8.4% over the past year.

Return vs Market: NTRA exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

NTRAIndustryMarket
7 Day10.2%1.7%0.4%
30 Day0.8%10.0%4.0%
90 Day39.8%7.1%7.4%
1 Year145.8%145.8%9.5%8.4%15.6%13.1%
3 Year231.8%231.8%14.9%11.2%48.2%38.6%
5 Yearn/a5.2%0.2%62.6%44.6%

Price Volatility Vs. Market

How volatile is Natera's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Natera undervalued compared to its fair value and its price relative to the market?

33.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NTRA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NTRA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NTRA is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: NTRA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NTRA is overvalued based on its PB Ratio (33.1x) compared to the US Biotechs industry average (2.9x).


Next Steps

Future Growth

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

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NTRA's revenue (12.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NTRA's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Natera performed over the past 5 years?

-30.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTRA has high quality earnings.

Growing Profit Margin: NTRA's current net profit margins (-42.5%) are higher than last year (-59.1%).


Past Earnings Growth Analysis

Earnings Trend: NTRA is unprofitable, and losses have increased over the past 5 years at a rate of -30.7% per year.

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

Earnings vs Industry: NTRA is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (86.5%).


Return on Equity

High ROE: NTRA has a negative Return on Equity (-143.44%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Natera's financial position?


Financial Position Analysis

Short Term Liabilities: NTRA's short term assets ($323.7M) exceeds its short term liabilities ($138.0M)

Long Term Liabilities: NTRA's short term assets (323.7M) exceeds its long term liabilities (157.6M)


Debt to Equity History and Analysis

Debt Level: NTRA's debt to equity ratio (146.1%) is considered high

Reducing Debt: NTRA's debt to equity ratio has reduced from 186.7% to 146.1% over the past 5 years.


Balance Sheet

Inventory Level: NTRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: NTRA's debt is covered by short term assets (assets are 2.6x debt).


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: NTRA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: NTRA has sufficient cash runway for 2.538862 years if free cash flow continues to grow at historical rates of 8.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NTRA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Steve Chapman (40yo)

0.8yrs

Tenure

US$1,483,155

Compensation

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 02, 2019. Mr. Chapman served as Chief Operating  ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.48M) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

46yo

Average Age

Experienced Management: NTRA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

54yo

Average Age

Experienced Board: NTRA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18%.


Management Team

  • Matt Rabinowitz (46yo)

    Co-Founder & Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: US$5.37m
  • Jonathan Sheena (46yo)

    Co-Founder

    • Tenure: 12.8yrs
    • Compensation: US$990.22k
  • Bob Schueren (57yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
  • Daniel Rabinowitz

    Secretary & General Counsel

    • Tenure: 0yrs
  • Steve Chapman (40yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: US$1.48m
  • Styrmir Sigurjonsson

    Senior Vice President of R&D - Data Science & Engineering

    • Tenure: 1.3yrs
  • Damon Silvestry

    Senior Vice President of Operations & People

    • Tenure: 1.3yrs
  • Ramesh Hariharan

    Vice President of Marketing & Medical Education

    • Tenure: 3.7yrs
  • Mike Brophy (39yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.17m
  • Phil Grinnell

    Vice President of Sales

    • Tenure: 3.7yrs

Board Members

  • Jim Healy (54yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$203.40k
  • Herm Rosenman (72yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$197.40k
  • Todd Cozzens (63yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$216.90k
  • Roelof Botha (46yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$209.25k
  • Matt Rabinowitz (46yo)

    Co-Founder & Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: US$5.37m
  • Gail Marcus (62yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$204.27k
  • Jonathan Sheena (46yo)

    Co-Founder

    • Tenure: 12.8yrs
    • Compensation: US$990.22k
  • Roy Baynes (64yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$255.56k
  • Steve Chapman (40yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: US$1.48m
  • Rowan Chapman

    Director

    • Tenure: 0.3yrs

Company Information

Natera, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Natera, Inc.
  • Ticker: NTRA
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$3.064b
  • Shares outstanding: 77.53m
  • Website: https://www.natera.com

Number of Employees


Location

  • Natera, Inc.
  • 201 Industrial Road
  • Suite 410
  • San Carlos
  • California
  • 94070
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTRANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2015
45EDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2015

Biography

Natera, Inc. provides preconception and prenatal genetic testing services. It offers Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus with a blood draw from the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:46
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.