Latest Ratios: P/E Ratio -257.2x · EV/EBITDA N/A · ROE -14.3%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $56.0B | $31.3B | $19.7B | $7.2B | $4.0B | $8.5B | $8.1B | $2.3B | $808M | $482M | $604M |
| Enterprise Value | $55.1B | $30.5B | $19.0B | $7.0B | $3.9B | $8.8B | $8.3B | $2.4B | $885M | $592M | $638M |
| P/E Ratio → | -257.17 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 24.28 | 13.58 | 11.63 | 6.65 | 4.82 | 13.52 | 20.62 | 7.75 | 3.13 | 2.28 | 2.78 |
| P/B Ratio | 31.21 | 18.29 | 16.52 | 9.41 | 5.60 | 12.95 | 16.58 | 8.41 | 25.11 | 18.96 | 5.67 |
| P/FCF | 513.07 | 287.05 | 285.13 | — | — | — | — | — | — | — | — |
| P/OCF | 260.02 | 145.48 | 145.53 | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 13.21 | 11.19 | 6.47 | 4.80 | 14.02 | 21.21 | 8.06 | 3.43 | 2.81 | 2.94 |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 279.16 | 274.18 | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.8% | 64.8% | 60.3% | 45.5% | 44.4% | 49.1% | 47.9% | 42.0% | 35.6% | 33.8% | 37.5% |
| Operating Margin | -13.4% | -13.4% | -13.1% | -41.2% | -66.0% | -74.8% | -55.3% | -38.5% | -44.5% | -63.5% | -44.4% |
| Net Profit Margin | -9.0% | -9.0% | -11.2% | -40.2% | -66.8% | -75.4% | -58.8% | -41.3% | -49.7% | -64.6% | -44.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -14.3% | -14.3% | -19.4% | -59.1% | -80.6% | -82.8% | -60.1% | -80.3% | -445.1% | -206.7% | -65.8% |
| ROA | -10.0% | -10.0% | -12.3% | -30.7% | -41.6% | -43.5% | -30.3% | -29.3% | -53.1% | -64.1% | -40.2% |
| ROIC | -36.1% | -36.1% | -33.3% | -53.5% | -49.1% | -41.7% | -29.7% | -36.2% | -70.1% | -72.6% | -42.7% |
| ROCE | -18.3% | -18.3% | -18.1% | -40.2% | -51.5% | -53.5% | -38.1% | -41.8% | -87.1% | -120.0% | -64.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.13 | 0.13 | 0.16 | 0.58 | 0.63 | 0.61 | 0.58 | 0.56 | 3.84 | 4.85 | 0.47 |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.50 | -0.63 | -0.26 | -0.03 | 0.48 | 0.48 | 0.34 | 2.40 | 4.35 | 0.32 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -7.90 | -10.95 | — | — | — | — | — | — | — | — |
| Interest Coverage | -64.89 | -64.89 | -16.76 | -33.38 | -57.68 | -55.72 | -14.23 | -10.49 | -10.94 | -31.56 | -186.96 |
Net cash position: cash ($1.1B) exceeds total debt ($214M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.39 | 3.39 | 4.00 | 4.10 | 3.90 | 4.99 | 4.33 | 2.91 | 2.11 | 1.71 | 1.81 |
| Quick Ratio | 3.24 | 3.24 | 3.87 | 3.96 | 3.79 | 4.87 | 4.23 | 2.84 | 1.99 | 1.63 | 1.74 |
| Cash Ratio | 2.44 | 2.44 | 2.81 | 2.86 | 2.89 | 4.18 | 3.70 | 2.45 | 1.35 | 1.13 | 1.52 |
| Asset Turnover | — | 0.92 | 1.02 | 0.75 | 0.59 | 0.51 | 0.42 | 0.52 | 0.96 | 0.98 | 1.03 |
| Inventory Turnover | 11.84 | 11.84 | 15.06 | 14.47 | 12.89 | 11.83 | 10.17 | 14.16 | 12.18 | 15.51 | 21.14 |
| Days Sales Outstanding | — | 46.93 | 67.58 | 93.83 | 108.75 | 71.24 | 73.34 | 64.41 | 88.15 | 76.29 | 22.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | 0.2% | 0.3% | 0.4% | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $137M | $125M | $115M | $98M | $91M | $81M | $70M | $58M | $54M | $52M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying NTRA stock.
Natera, Inc.'s current P/E ratio is -257.2x. This places it at the 50th percentile of its historical range.
Natera, Inc.'s return on equity (ROE) is -14.3%. The historical average is -111.4%.
Based on historical data, Natera, Inc. is trading at a P/E of -257.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Natera, Inc. has 64.8% gross margin and -13.4% operating margin.
Key Metrics
Top Statement Risk
Persistent negative operating margins
Metrics are mathematically derived from official filings.
Margin Expansion Tempered by Cost Pressures
Gross margin improved from 56.7% in 2024Q1 to 64.5% in 2026Q2, per reported financials, yet operating margin remains deeply negative at -10.1%, indicating scale benefits are being offset by heavy investment.
The 780 basis point gross margin expansion over ten quarters reflects a favorable mix shift toward higher-ASP oncology tests and automation benefits, as noted in prior analysis. However, operating margin improvement from -20.2% to -10.1% has been slower, with SG&A and R&D costs growing nearly in line with revenue, suggesting that the company is still in a heavy investment phase. The 2026Q2 EPS miss of -$0.47 versus -$0.38 estimates, despite revenue of $752.8M, reinforces that near-term cost discipline remains elusive, and investors should monitor whether gross margin gains can eventually flow through to operating profitability.
Return on Capital Remains Deeply Negative
ROIC deteriorated from -6.3% in 2024Q3 to -17.2% in 2025Q3, then recovered to -6.0% in 2026Q2, as reported in financial statements, indicating that the company is still destroying value on invested capital.
The negative ROIC trend, despite a recent improvement, suggests that Natera's heavy investment in sales force, R&D, and lab capacity has not yet generated sufficient returns. The improvement from -17.2% to -6.0% in 2026Q2 is encouraging, but it remains far below the cost of capital, implying that the company is still in a value-creation vacuum. The $1.0B equity raise in late 2025 expanded the capital base, but without a clear path to positive ROIC, the company's compounding potential remains unproven, and investors should watch for sustained improvement in capital efficiency.
Working Capital Efficiency Improves on Collections
Cash conversion cycle shortened from 82 days in 2024Q1 to 53 days in 2026Q2, per reported figures, driven by a 19-day reduction in days sales outstanding, indicating improved billing and collection processes.
The 29-day improvement in CCC is a positive sign, as DSO fell from 70 to 51 days, suggesting that the company is getting better at collecting from payers, a critical factor given the complexity of molecular diagnostics billing. However, DPO increased only modestly from 12 to 23 days, indicating limited supplier leverage, and DIO remained stable around 26 days. The improvement in DSO may reflect a shift toward more favorable payer mix or better revenue cycle management, but the sustainability of this trend warrants monitoring, especially as volume scales.
Leverage Halved, Interest Coverage Negative
Debt-to-equity fell from 0.55 in 2024Q1 to 0.13 in 2026Q2, as reported in financial statements, but interest coverage remains negative at -74.5, indicating that operating losses still exceed interest expense.
The dramatic deleveraging, driven by a $1.0B equity raise, has reduced refinancing risk, with cash of $1.1B covering debt over 4.6 times. However, the negative interest coverage ratio, which has persisted across all quarters, suggests that the company is not yet generating enough operating income to cover its interest obligations, though this is mitigated by the low absolute debt level. The negative coverage is a function of operating losses rather than excessive debt, and the company's ample cash buffer provides a cushion, but investors should monitor whether the path to profitability can turn coverage positive.
Liquidity Ample but Dependent on Cash Buffer
Current ratio stands at 3.0 in 2026Q2, down from 4.4 in 2024Q3, per balance sheet data, but cash of $1.1B provides a multi-year runway against operating losses.
The current ratio remains healthy, though it has declined from peak levels as the company invests in PP&E and other assets. The quick ratio of 2.85 indicates that inventory is not a significant liquidity concern, which is typical for a diagnostics company. The $1.1B cash position, combined with positive free cash flow in recent quarters, suggests that the company can sustain its operations without immediate capital raises, but the declining current ratio and ongoing negative profitability warrant monitoring for potential liquidity strain if losses persist.
P/S Multiple Misapplied to Unprofitable Growth
The price-to-sales ratio of 19.25, based on current market data, is often used to value Natera, but it obscures the company's negative margins and heavy SBC, which overstates cash generation.
For a company with negative operating margins and significant stock-based compensation, P/S is a misleading metric because it fails to account for the cost structure and dilution. In 2026Q2, SBC of $103.1M exceeded operating cash flow, as reported, suggesting that reported OCF may overstate cash generation when adjusted for SBC. A more appropriate valuation metric would be EV/EBITDA or a multiple on gross profit, which better captures the underlying economics of the scaling diagnostics business. Investors should focus on the path to positive free cash flow after SBC, rather than top-line growth alone.