Natera Inc. Common Stock (NTRA)

FairStock Score: 45/100 — MIXED

Key Financials

Strengths

• Generates $137 million in annual free cash flow (0.5% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.14, providing financial flexibility
• Altman Z-Score of 23.3 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 39.8% demonstrates strong top-line momentum

AI Analysis

Natera Inc. Common Stock is a mid-cap healthcare company valued at $27.6 billion. The business generates $2.5 billion in annual revenue with a 1.9% net margin and $137 million in free cash flow. From a quality standpoint, Natera shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 23.3 confirms fortress-level solvency. On valuation, the stock is 0.1% FCF yield. Growth dynamics show revenue growing at 39.8% and profit growth of 187.9%. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Natera's 40% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $137 million in annual free cash flow (0.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer