Natera may be overvalued with poor growth indicators, but the 14 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $29.0 to $117.0 per share, for an average of $75.43. At today's price of $52.72, Natera is trading -30.11% away from its average target price, suggesting there is an analyst consensus of strong upside potential.
Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Based in Austin, TX, the mid-cap Health Care company has 2,958 full time employees. Natera has not offered a dividend during the last year.
Natera does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at -2.83. The average P/E ratio for the Health Care sector is 24.45. Furthermore, Natera is likely overvalued compared to its book value, since its P/B ratio of 8.3 is higher than the sector average of 4.16.
Why would analysts be giving such an overvalued stock a good rating? It's possible that analysts are looking beyond common valuation metrics and taking into account the company's responsible use of debt to operate its business. They likely put significant weight behind Natera's growth potential, as signaled by its 28.3% rate of revenue growth.
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $302,328 | $391,005 | $625,486 | $820,222 |
| Revenue Growth | n/a | 29.33% | 59.97% | 31.13% |
| Gross Margins | 42.0% | 47.9% | 49.1% | 44.4% |
| Gross Margins Growth | n/a | 14.05% | 2.51% | -9.57% |
| Operating Margins | -43.2% | -55.3% | -74.8% | -66.0% |
| Operating Margins Growth | n/a | -28.01% | -35.26% | 11.76% |
| Net Margins | -41.29% | -58.76% | -75.42% | -66.79% |
| Net Margins Growth | n/a | -42.31% | -28.35% | 11.44% |
| Earnings Per Share | -$1.79 | -$2.84 | -$5.21 | -$5.44 |
| EPS Growth | n/a | -58.66% | -83.45% | -4.41% |
| Diluted Shares (MM) | 70 | 81 | 91 | 113 |
| Free Cash Flow (k) | -$68,412 | -$202,116 | -$376,266 | n/a |
| FCF Growth | n/a | -195.44% | -86.16% | n/a |
| Capital Expenditures (k) | -$4,968 | -$19,604 | -$41,030 | n/a |
| LT Debt to Equity | 0.26 | 0.42 | 0.43 | 0.4 |
