New Relic Inc (NEWR)
US64829B1008 - Common Stock
Taking everything into account, NEWR scores 5 out of 10 in our fundamental rating. NEWR was compared to 275 industry peers in the Software industry. NEWR scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
NEWR had a positive operating cash flow in the past year.
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's Return On Assets of -16.14% is in line compared to the rest of the industry. NEWR outperforms 40.14% of its industry peers.
NEWR has a Return On Equity of -37.27%. This is comparable 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
Looking at the Gross Margin, with a value of 76.88%, NEWR is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
NEWR's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for NEWR so they could not be analyzed.
| 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.
Compared to 5 years ago, NEWR has more shares outstanding
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.
NEWR has a better Altman-Z score (6.66) than 79.93% of its industry peers.
NEWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
NEWR has a Current ratio (1.58) which is comparable to the rest of the 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's Quick ratio of 1.58 is in line compared 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
NEWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 405.45%, which is quite impressive.
Measured over the past years, NEWR shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.59% on average per year.
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 growth Q2Q292.31%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y15.58%
Revenue growth 5Y21.12%
Revenue growth Q2Q6.98%
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.
Based on estimates for the next years, NEWR will show a quite strong growth in Revenue. The Revenue will grow by 14.84% on average per year.
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
The Price/Earnings ratio is 51.78, which means the current valuation is very expensive for NEWR.
Compared to the rest of the industry, the Price/Earnings ratio of NEWR indicates a somewhat cheap valuation: NEWR is cheaper than 66.31% of the companies listed in the same industry.
NEWR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.80.
The Price/Forward Earnings ratio is 41.38, which means the current valuation is very expensive for NEWR.
NEWR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NEWR is cheaper than 63.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, NEWR is valued quite expensively.
| 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.
A more expensive valuation may be justified as NEWR's earnings are expected to grow with 56.67% in the coming years.
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 |
New Relic Inc
NYSE:NEWR (11/7/2023, 7:12:48 PM)
After market: 87 +0.01 (+0.01%)86.99
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.78 | ||
| Fwd PE | 41.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.14% | ||
| ROE | -37.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)405.45%
EPS 3Y-2.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y186.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.48%
Revenue growth 3Y15.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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