New Relic Inc (NEWR) Stock Fundamental Analysis
USA - NYSE:NEWR - US64829B1008 - Common Stock
86.99 USD
+0.02 (+0.02%)
87 USD
+0.01 (+0.01%)
Taking everything into account, NEWR scores 5 out of 10 in our fundamental rating. NEWR was compared to 279 industry peers in the Software industry. While NEWR seems to be doing ok healthwise, there are quite some concerns on its profitability. NEWR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
NEWR had positive earnings in the past year.
NEWR had a positive operating cash flow in the past year.
NEWR had negative earnings in each of the past 5 years.
NEWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -16.14%, NEWR is in line with its industry, outperforming 40.14% of the companies in the same industry.
With a Return On Equity value of -37.27%, NEWR perfoms like the industry average, outperforming 41.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.14% | ||
| ROE | -37.27% | ||
| ROIC | N/A |
ROA(3y)-14.67%
ROA(5y)-10.97%
ROE(3y)-59.02%
ROE(5y)-42.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of NEWR (76.88%) is better than 74.19% of its industry peers.
NEWR's Gross Margin has declined in the last couple of years.
NEWR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.86%
GM growth 5Y-2.22%
2. Health
2.1 Basic Checks
NEWR does not have a ROIC to compare to the WACC, probably because it is not profitable.
NEWR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NEWR has been increased compared to 5 years ago.
Compared to 1 year ago, NEWR has a worse debt to assets ratio.
2.2 Solvency
NEWR has an Altman-Z score of 6.66. This indicates that NEWR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.66, NEWR is doing good in the industry, outperforming 79.93% of the companies in the same industry.
There is no outstanding debt for NEWR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.66 |
ROIC/WACCN/A
WACC10.72%
2.3 Liquidity
NEWR has a Current Ratio of 1.58. This is a normal value and indicates that NEWR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.58, NEWR perfoms like the industry average, outperforming 46.59% of the companies in the same industry.
NEWR has a Quick Ratio of 1.58. This is a normal value and indicates that NEWR is financially healthy and should not expect problems in meeting its short term obligations.
NEWR has a Quick ratio of 1.58. This is comparable to the rest of the industry: NEWR outperforms 47.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 405.45% over the past year.
NEWR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.59% yearly.
Looking at the last year, NEWR shows a quite strong growth in Revenue. The Revenue has grown by 13.48% in the last year.
The Revenue has been growing by 21.12% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)405.45%
EPS 3Y-2.59%
EPS 5YN/A
EPS Q2Q%292.31%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y15.58%
Revenue growth 5Y21.12%
Sales Q2Q%6.98%
3.2 Future
The Earnings Per Share is expected to grow by 42.30% on average over the next years. This is a very strong growth
NEWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.84% yearly.
EPS Next Y186.08%
EPS Next 2Y85.65%
EPS Next 3Y56.67%
EPS Next 5Y42.3%
Revenue Next Year11.06%
Revenue Next 2Y12.49%
Revenue Next 3Y15.41%
Revenue Next 5Y14.84%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 51.78 indicates a quite expensive valuation of NEWR.
66.31% of the companies in the same industry are more expensive than NEWR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NEWR to the average of the S&P500 Index (27.06), we can say NEWR is valued expensively.
Based on the Price/Forward Earnings ratio of 41.38, the valuation of NEWR can be described as expensive.
Based on the Price/Forward Earnings ratio, NEWR is valued a bit cheaper than 63.80% of the companies in the same industry.
NEWR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.78 | ||
| Fwd PE | 41.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEWR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NEWR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEWR's earnings are expected to grow with 56.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y85.65%
EPS Next 3Y56.67%
5. Dividend
5.1 Amount
NEWR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.99
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners5.84%
Ins Owner Change0%
Market Cap6.18B
Analysts68.18
Price Target88.03 (1.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.94%
Min EPS beat(2)26.69%
Max EPS beat(2)35.2%
EPS beat(4)4
Avg EPS beat(4)64.29%
Min EPS beat(4)26.69%
Max EPS beat(4)107.31%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-5.11%
Max Revenue beat(2)-0.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-5.11%
Max Revenue beat(4)1.01%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.61%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-1.56%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.78 | ||
| Fwd PE | 41.38 | ||
| P/S | 6.38 | ||
| P/FCF | 80.66 | ||
| P/OCF | 65.45 | ||
| P/B | 15.95 | ||
| P/tB | 29.92 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.68
EY1.93%
EPS(NY)2.1
Fwd EY2.42%
FCF(TTM)1.08
FCFY1.24%
OCF(TTM)1.33
OCFY1.53%
SpS13.62
BVpS5.46
TBVpS2.91
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.14% | ||
| ROE | -37.27% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.88% | ||
| FCFM | 7.92% |
ROA(3y)-14.67%
ROA(5y)-10.97%
ROE(3y)-59.02%
ROE(5y)-42.3%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.86%
GM growth 5Y-2.22%
F-Score7
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 42.97% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 6.66 |
F-Score7
WACC10.72%
ROIC/WACCN/A
Cap/Depr(3y)29.68%
Cap/Depr(5y)52.98%
Cap/Sales(3y)3.11%
Cap/Sales(5y)6.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)405.45%
EPS 3Y-2.59%
EPS 5YN/A
EPS Q2Q%292.31%
EPS Next Y186.08%
EPS Next 2Y85.65%
EPS Next 3Y56.67%
EPS Next 5Y42.3%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y15.58%
Revenue growth 5Y21.12%
Sales Q2Q%6.98%
Revenue Next Year11.06%
Revenue Next 2Y12.49%
Revenue Next 3Y15.41%
Revenue Next 5Y14.84%
EBIT growth 1Y45.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year861.55%
EBIT Next 3Y144.5%
EBIT Next 5YN/A
FCF growth 1Y384.71%
FCF growth 3Y5.83%
FCF growth 5Y28.88%
OCF growth 1Y1870.61%
OCF growth 3Y-16.81%
OCF growth 5Y8.54%