Invitae (NVTA -55.88%) shares have plummeted more than 80% this year. The genetic testing company has grown revenue over the years, but it hasn't been able to turn that revenue into profit. Instead, it's burned through cash -- and left investors wondering when and if the company can make it to profitability.

But Invitae isn't standing by and watching a worsening situation; the company aims to turn things around. In July, it announced a strategic plan. Considering the new efforts and share-price declines, is Invitae a buy now? Let's take a closer look.

A variety of genetic tests

First, a little background on Invitae. The company makes a variety of genetic tests that it sells both to healthcare providers and directly to individuals. For instance, you can take a test to screen for potential genetic illnesses. Other tests can determine your risk of passing such an illness on to a child.

This business has helped Invitae grow its top line. For the full year 2021, the company's revenue climbed 65%, and billable volume soared 77%. But that hasn't been enough to stem cash burn and push the company toward profitability.

NVTA Revenue (Annual) Chart

NVTA Revenue (Annual) data by YCharts.

Last year, Invitae burned through more than $849 million. That's after a cash burn of more than $693 million in the prior year.

All of this may sound grim. But Invitae's new plan is meant to address the problems. The company aims to reach annualized cost savings of $326 million next year and extend its cash runway through 2024. It will do this by shifting its focus to high-margin businesses and geographies. For example, it plans on working with fewer than a dozen areas internationally to more quickly reach positive cash flow.

The company also will focus resources into key areas including genome sequencing and genome management platforms. And Invitae announced a series of management team transitions to lead the new efforts: Kenneth D. Knight left his role as chief operating officer to become CEO, and co-founder Randy Scott returned as chairman.

A possible turnaround?

Could this plan turn things around? As mentioned above, Invitae aims to attack key problems like cash burn -- and sets out steps that should lead to positive cash flow. But it's still too early to say whether the company will actually reach its goals, so it's important to keep in mind that investing in this stock remains risky.

Now let's look at valuation. Invitae is trading at its lowest price-to-sales ratio in at least five years. That's as revenue continues to climb.

NVTA PS Ratio Chart

NVTA PS Ratio data by YCharts.

The stock looks cheap by this measure. But this doesn't take into account the fact that Invitae has had to burn through cash to advance its business. If its plan doesn't succeed, the stock may remain at this valuation -- or drop even further.

So, is the stock a buy considering all of these elements? If you're a very aggressive investor and like to bet on recovery stories, you might pick up a few shares of Invitae at this level. If the plan results in improvement, the stock could post big gains from here.

Genetic testing is on the rise, after all. The global market, at a compound annual growth rate of about 10%, is forecast to reach $36 billion by 2030, according to Straits Research. Invitae should benefit from this growth.

That said, if Invitae's current plan falters, the stock could stagnate -- or even worse, drop significantly. So, for most investors, the best thing to do right now is to watch this healthcare company from the sidelines. Only progress in its new plan will bring more visibility -- and possibly some safety -- to this investment story.