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New Relic Inc (NEWR) Stock Fundamental Analysis

NYSE:NEWR - New York Stock Exchange, Inc. - US64829B1008 - Common Stock - Currency: USD

86.99  +0.02 (+0.02%)

After market: 87 +0.01 (+0.01%)

Fundamental Rating

5

NEWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. The financial health of NEWR is average, but there are quite some concerns on its profitability. NEWR is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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2

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M -200M

1.2 Ratios

The Return On Assets of NEWR (-16.14%) is comparable to the rest of the industry.
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 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 2015 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.
In the last couple of years the Gross Margin of NEWR has declined.
NEWR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 80

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6

2. Health

2.1 Basic Checks

NEWR does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, NEWR has more shares outstanding
Compared to 5 years ago, NEWR has more shares outstanding
The debt/assets ratio for NEWR is higher compared to a year ago.
NEWR Yearly Shares OutstandingNEWR Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
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 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 2015 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.
Looking at the Current ratio, with a value of 1.58, NEWR is in line with its industry, outperforming 46.59% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that NEWR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.58, NEWR perfoms like the industry average, outperforming 47.31% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 405.45% over the past year.
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.
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

Based on estimates for the next years, NEWR will show a very strong growth in Earnings Per Share. The EPS will grow by 42.30% on average per year.
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

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.
NEWR Yearly Revenue VS EstimatesNEWR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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. 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.
NEWR is valuated expensively when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
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 21.32, NEWR is valued quite expensively.
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 ratio is in line with 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.
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%

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0

5. Dividend

5.1 Amount

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

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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 SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-27 2023-10-27/bmo
Earnings (Next)02-05 2024-02-05/amc
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 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
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
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 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%