NYSE:NVTA

Stock Analysis Report

Executive Summary

Invitae Corporation, a genetic information company, processes DNA-containing samples, analyzes information related to patient-specific genetic variation, and generates test reports for clinicians and their patients in the United States, Canada, and internationally.

Rewards

Revenue is forecast to grow 31.59% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NVTA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

17.4%

NVTA

0.9%

US Biotechs

2.0%

US Market


1 Year Return

31.4%

NVTA

11.3%

US Biotechs

23.6%

US Market

Return vs Industry: NVTA exceeded the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: NVTA exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

NVTAIndustryMarket
7 Day17.4%0.9%2.0%
30 Day20.2%0.7%3.9%
90 Day10.7%20.6%12.0%
1 Year31.4%31.4%12.3%11.3%26.2%23.6%
3 Year130.7%130.7%28.9%24.6%53.2%43.3%
5 Yearn/a4.3%-0.6%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.69x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: NVTA 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 NVTA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NVTA is overvalued based on its PB Ratio (4.4x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

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

11.0%

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 (31.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: NVTA's revenue (31.6% 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.


Next Steps

Past Performance

How has Invitae performed over the past 5 years?

-20.9%

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 -20.9% 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 Biotechs industry (103.3%).


Return on Equity

High ROE: NVTA has a negative Return on Equity (-48.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Invitae's financial position?


Financial Position Analysis

Short Term Liabilities: NVTA's short term assets ($508.5M) exceed its short term liabilities ($68.9M).

Long Term Liabilities: NVTA's short term assets ($508.5M) exceed its long term liabilities ($317.6M).


Debt to Equity History and Analysis

Debt Level: NVTA's debt to equity ratio (65.7%) is considered high.

Reducing Debt: NVTA's debt to equity ratio has increased from 0% to 65.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NVTA's debt is covered by short term assets (assets are 1.9x 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: NVTA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: NVTA has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -9.9% each year


Next Steps

Dividend

What is Invitae'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 NVTA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NVTA'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 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.


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 NVTA'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 Invitae's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Sean George (45yo)

3yrs

Tenure

US$2,233,360

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD2.23M) is below average for companies of similar size in the US market ($USD3.86M).

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


Management Age and Tenure

3.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: NVTA's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

54yo

Average Age

Experienced Board: NVTA's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$128,41027 Aug 19
Geoffrey Crouse
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$25.68
SellUS$517,19321 Aug 19
Shelly Guyer
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares20,447
Max PriceUS$25.29
SellUS$537,88321 Aug 19
Lee Bendekgey
EntityIndividual
Role
Chief Operating Officer
Secretary & COO
Shares21,265
Max PriceUS$25.29
SellUS$413,76421 Aug 19
Sean George
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares16,358
Max PriceUS$25.29
SellUS$517,19321 Aug 19
Robert Nussbaum
EntityIndividual
Role
Senior Key Executive
Chief Medical Officer
Shares20,447
Max PriceUS$25.29
SellUS$579,23921 Aug 19
Katherine Stueland
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares22,900
Max PriceUS$25.29
SellUS$345,59621 Aug 19
Thomas Brida
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares13,663
Max PriceUS$25.29
SellUS$117,89223 May 19
Katherine Stueland
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares6,474
Max PriceUS$18.21
SellUS$39,07923 May 19
Thomas Brida
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares2,146
Max PriceUS$18.21
SellUS$124,75723 May 19
Lee Bendekgey
EntityIndividual
Role
Chief Operating Officer
Secretary & COO
Shares6,851
Max PriceUS$18.21
SellUS$442,17523 May 19
Sean George
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares24,282
Max PriceUS$18.21
SellUS$100,39222 May 19
Shelly Guyer
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,513
Max PriceUS$18.21
SellUS$131,14822 May 19
Robert Nussbaum
EntityIndividual
Role
Senior Key Executive
Chief Medical Officer
Shares7,202
Max PriceUS$18.21
SellUS$25,23018 Apr 19
Katherine Stueland
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares1,000
Max PriceUS$25.23

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39.9%.


Management Team

  • Lee Bendekgey (61yo)

    Secretary & COO

    • Tenure: 2.6yrs
    • Compensation: US$1.48m
  • Robert Nussbaum (69yo)

    Chief Medical Officer

    • Tenure: 4.4yrs
    • Compensation: US$802.74k
  • Shelly Guyer (59yo)

    Chief Financial Officer

    • Tenure: 2.6yrs
    • Compensation: US$1.40m
  • Katherine Stueland (43yo)

    Chief Commercial Officer

    • Tenure: 3.3yrs
    • Compensation: US$1.48m
  • Tom Brida (48yo)

    General Counsel

    • Tenure: 3yrs
  • Sean George (45yo)

    Co-Founder

    • Tenure: 3yrs
    • Compensation: US$2.23m

Board Members

  • Eric Aguiar (57yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$96.27k
  • Christine Gorjanc (62yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$91.27k
  • Sean George (45yo)

    Co-Founder

    • Tenure: 3yrs
    • Compensation: US$2.23m
  • Geoff Crouse (48yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$96.27k
  • Chitra Nayak (54yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$164.89k

Company Information

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


Key Information

  • Name: Invitae Corporation
  • Ticker: NVTA
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.895b
  • Shares outstanding: 96.52m
  • Website: https://www.invitae.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVTANYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2015
IV8DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2015
0JDBLSE (London Stock Exchange)YesCommon StockGBUSDFeb 2015

Biography

Invitae Corporation, a genetic information company, processes DNA-containing samples, analyzes information related to patient-specific genetic variation, and generates test reports for clinicians and their patients in the United States, Canada, and internationally. Its tests include genes associated with hereditary cancer, neurological disorders, cardiovascular disorders, pediatric disorders, metabolic disorders, and other hereditary conditions; and screening and testing services in reproductive health, including preimplantation and carrier screening for inherited disorders, prenatal diagnosis, miscarriage analysis, and pediatric developmental disorders. The company also operates AltaVoice, a platform for collecting, curating, coordinating, and delivering data from patients and clinicians; and CancerGene Connect, an end-to-end platform for collecting and managing genetic family histories to deliver personalized genetic risk information. It serves patients, healthcare providers, and biopharma and advocacy partners. Invitae Corporation was founded in 2010 and is headquartered in San Francisco, California.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/19 00:44
End of Day Share Price2020/01/17 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.