New Relic Inc (NEWR) Fundamental Analysis & Valuation

NYSE:NEWR • US64829B1008

Current stock price

86.99 USD
+0.02 (+0.02%)
At close:
87 USD
+0.01 (+0.01%)
After Hours:

This NEWR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. NEWR Profitability Analysis

1.1 Basic Checks

  • NEWR had positive earnings in the past year.
  • In the past year NEWR had a positive cash flow from operations.
  • In the past 5 years NEWR always reported negative net income.
  • Each year in the past 5 years NEWR had a positive operating cash flow.
NEWR Yearly Net Income VS EBIT VS OCF VS FCFNEWR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M -200M

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 (-37.27%) which is in line with its industry peers.
Industry RankSector 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
NEWR Yearly ROA, ROE, ROICNEWR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 -20 -40 -60

1.3 Margins

  • NEWR has a better Gross Margin (76.88%) than 74.19% of its industry peers.
  • 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 RankSector 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%
NEWR Yearly Profit, Operating, Gross MarginsNEWR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60 80

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6

2. NEWR Health Analysis

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.
  • The debt/assets ratio for NEWR is higher compared to a year ago.
NEWR Yearly Shares OutstandingNEWR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
NEWR Yearly Total Debt VS Total AssetsNEWR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

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.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.66
ROIC/WACCN/A
WACC10.72%
NEWR Yearly LT Debt VS Equity VS FCFNEWR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

  • A Current Ratio of 1.58 indicates that NEWR should not have too much problems paying its short term obligations.
  • NEWR has a Current ratio of 1.58. This is comparable to the rest of the industry: NEWR outperforms 46.59% of its industry peers.
  • A Quick Ratio of 1.58 indicates that NEWR should not have too much problems paying its short term obligations.
  • NEWR has a Quick ratio (1.58) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.58
Quick Ratio 1.58
NEWR Yearly Current Assets VS Current LiabilitesNEWR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. NEWR Growth Analysis

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.
  • Measured over the past years, NEWR shows a very strong growth in Revenue. The Revenue has been growing by 21.12% on average per year.
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.
NEWR Yearly Revenue VS EstimatesNEWR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
NEWR Yearly EPS VS EstimatesNEWR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 -1 2 3

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4

4. NEWR Valuation Analysis

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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, NEWR is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 41.38, the valuation of NEWR can be described as expensive.
  • 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.
  • NEWR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.69.
Industry RankSector Rank
PE 51.78
Fwd PE 41.38
NEWR Price Earnings VS Forward Price EarningsNEWR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • NEWR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 80.66
EV/EBITDA N/A
NEWR Per share dataNEWR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NEWR Dividend Analysis

5.1 Amount

  • No dividends for NEWR!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

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NEWR Fundamentals: All Metrics, Ratios and Statistics

New Relic Inc

NYSE:NEWR (11/7/2023, 8:12:48 PM)

After market: 87 +0.01 (+0.01%)

86.99

+0.02 (+0.02%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-27
Earnings (Next)02-05
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis FAQ

What is the fundamental rating for NEWR stock?

ChartMill assigns a fundamental rating of 5 / 10 to NEWR.


What is the valuation status of New Relic Inc (NEWR) stock?

ChartMill assigns a valuation rating of 4 / 10 to New Relic Inc (NEWR). This can be considered as Fairly Valued.


How profitable is New Relic Inc (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.