New Relic Inc (NEWR) Stock Fundamental Analysis
NYSE:NEWR - New York Stock Exchange, Inc. - US64829B1008 - Common Stock - Currency: USD
Taking everything into account, NEWR scores 5 out of 10 in our fundamental rating. NEWR was compared to 283 industry peers in the Software industry. The financial health of NEWR is average, but 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.
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
With a Return On Assets value of -16.14%, NEWR perfoms like the industry average, outperforming 40.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of -37.27%, NEWR is in line with its industry, 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
NEWR has a Gross Margin of 76.88%. This is in the better half of the industry: NEWR outperforms 74.19% of its industry peers.
In the last couple of years the Gross Margin of NEWR has declined.
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.
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.
NEWR has a better Altman-Z score (6.66) than 79.93% of its industry peers.
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.
NEWR's Current ratio of 1.58 is in line compared 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.
Looking at the Quick ratio, with a value of 1.58, NEWR is in line with its industry, outperforming 47.31% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -2.59% on average over the past years.
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
The Earnings Per Share is expected to grow by 42.30% on average over the next years. This is a very strong growth
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.
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
The Price/Earnings ratio is 51.78, which means the current valuation is very expensive for NEWR.
Based on the Price/Earnings ratio, NEWR is valued a bit cheaper than 66.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of NEWR to the average of the S&P500 Index (29.62), we can say NEWR is valued expensively.
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 22.70, NEWR is valued quite expensively.
| 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
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
No dividends for NEWR!.
| 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%