New Relic Inc (NEWR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEWR - US64829B1008 - Common Stock
86.99 USD
+0.02 (+0.02%)
87 USD
+0.01 (+0.01%)
Overall NEWR gets a fundamental rating of 5 out of 10. We evaluated NEWR against 278 industry peers in the Software industry. The financial health of NEWR is average, but there are quite some concerns on its profitability. NEWR is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year NEWR was profitable.
In the past year NEWR had a positive cash flow from operations.
NEWR had negative earnings in each of the past 5 years.
Each year in the past 5 years NEWR had a positive operating cash flow.
1.2 Ratios
NEWR has a Return On Assets (-16.14%) which is comparable to the rest of the industry.
NEWR's Return On Equity of -37.27% is in line compared to the rest of the industry. NEWR outperforms 41.22% of its industry peers.
| 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
NEWR's Gross Margin of 76.88% is fine compared to the rest of the industry. NEWR outperforms 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.
The number of shares outstanding for NEWR has been increased compared to 1 year ago.
NEWR has more shares outstanding than it did 5 years ago.
NEWR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.66 indicates that NEWR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.66, NEWR is in the better half of 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
A Current Ratio of 1.58 indicates that NEWR should not have too much problems paying 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.
NEWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.48%.
NEWR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.12% yearly.
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
NEWR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.30% yearly.
The Revenue is expected to grow by 14.84% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 51.78, NEWR can be considered very expensive at the moment.
66.31% of the companies in the same industry are more expensive than NEWR, based on the Price/Earnings ratio.
NEWR is valuated expensively when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 41.38, NEWR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, NEWR is valued a bit cheaper than the industry average as 63.80% of the companies are valued more expensively.
NEWR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.78 | ||
| Fwd PE | 41.38 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as NEWR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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
Revenue(TTM)967.64M
Net Income(TTM)-144.41M
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
Graham NumberN/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
ROICexgc growth 3YN/A
ROICexgc 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%
New Relic Inc / NEWR FAQ
What is the fundamental rating for NEWR stock?
ChartMill assigns a fundamental rating of 5 / 10 to NEWR.
What is the valuation status for NEWR stock?
ChartMill assigns a valuation rating of 4 / 10 to New Relic Inc (NEWR). This can be considered as Fairly Valued.
What is the profitability of NEWR stock?
New Relic Inc (NEWR) has a profitability rating of 2 / 10.
What is the valuation of New Relic Inc based on its PE and PB ratios?
The Price/Earnings (PE) ratio for New Relic Inc (NEWR) is 51.78 and the Price/Book (PB) ratio is 15.95.
What is the expected EPS growth for New Relic Inc (NEWR) stock?
The Earnings per Share (EPS) of New Relic Inc (NEWR) is expected to grow by 186.08% in the next year.