New Relic (NYSE:NEWR) - Share price, News & Analysis

NEWR fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

NEWR Stock Overview

New Relic, Inc., a software-as-a-service company, delivers a software platform for customers to collect telemetry data and derive insights from that data in a unified front-end application.

Rewards

Trading at 8% below our estimate of its fair value

Revenue is forecast to grow 15.14% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

New Relic Competitors

Price History & Performance

Summary of all time highs, changes and price drops for New Relic
Historical stock prices
Current Share Price	US$54.08
52 Week High	US$129.70
52 Week Low	US$41.66
Beta	1.01
1 Month Change	13.30%
3 Month Change	-19.98%
1 Year Change	-22.23%
3 Year Change	-37.49%
5 Year Change	25.74%
Change since IPO	59.11%

Recent News & Updates

Jun 14

Is New Relic, Inc. (NYSE:NEWR) Trading At A 23% Discount?

How far off is New Relic, Inc. ( NYSE:NEWR ) from its intrinsic value? Using the most recent financial data, we'll take...

Shareholder Returns

	NEWR	US Software	US Market
7D	17.4%	9.9%	6.6%
1Y	-22.2%	-18.1%	-18.5%

Return vs Industry: NEWR underperformed the US Software industry which returned -18.1% over the past year.

Return vs Market: NEWR underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is NEWR's price volatile compared to industry and market?
NEWR volatility
NEWR Average Weekly Movement	9.8%
Software Industry Average Movement	11.1%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: NEWR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: NEWR's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	2,217	Bill Staples	https://www.newrelic.com

New Relic, Inc., a software-as-a-service company, delivers a software platform for customers to collect telemetry data and derive insights from that data in a unified front-end application. It offers a suite of products on its open and extensible cloud-based platform, which enables users to collect, store, and analyze telemetry data. The company’s platform also provides New Relic Instant Observability, an open-source ecosystem of quickstarts that delivers pre-built integrations, dashboards, and alerts for approximately 450 technologies and frameworks; and supports custom app development through common open-source frameworks, a library of existing applications, and a development environment.

New Relic Fundamentals Summary

How do New Relic's earnings and revenue compare to its market cap?
NEWR fundamental statistics
Market Cap	US$3.62b
Earnings (TTM)	-US$250.40m
Revenue (TTM)	US$785.52m

4.6x

P/S Ratio

-14.5x

P/E Ratio

Is NEWR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NEWR income statement (TTM)
Revenue	US$785.52m
Cost of Revenue	US$256.28m
Gross Profit	US$529.24m
Other Expenses	US$779.64m
Earnings	-US$250.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-3.74
Gross Margin	67.37%
Net Profit Margin	-31.88%
Debt/Equity Ratio	144.5%

How did NEWR perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is NEWR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NEWR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NEWR. This is calculated by dividing NEWR's market cap by their current preferred multiple.
What is NEWR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.62b

NEWR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.3x
Enterprise Value/EBITDA	-18.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does NEWR's PS Ratio compare to its peers?

NEWR PS Ratio vs Peers

The above table shows the PS ratio for NEWR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	5.6x

Forward PS

Price-To-Sales vs Peers: NEWR is good value based on its Price-To-Sales Ratio (4.6x) compared to the peer average (5.6x).

Price to Earnings Ratio vs Industry

How does NEWR's PE Ratio compare vs other companies in the U.S. Software Industry?

Price-To-Sales vs Industry: NEWR is good value based on its Price-To-Sales Ratio (4.6x) compared to the US Software industry average (4.7x)

Price to Sales Ratio vs Fair Ratio

What is NEWR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NEWR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.6x
Fair PS Ratio	6.2x

Price-To-Sales vs Fair Ratio: NEWR is good value based on its Price-To-Sales Ratio (4.6x) compared to the estimated Fair Price-To-Sales Ratio (6.2x).

Share Price vs Fair Value

What is the Fair Price of NEWR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NEWR ($54.08) is trading below our estimate of fair value ($58.76)

Significantly Below Fair Value: NEWR is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NEWR's PEG Ratio to determine if it is good value.

Discover undervalued companies

Future Growth

How is New Relic forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEWR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NEWR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NEWR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NEWR's revenue (15.1% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: NEWR's revenue (15.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NEWR's Return on Equity is forecast to be low in 3 years time (20%).

Discover growth companies

Past Performance

How has New Relic performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-42.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NEWR is currently unprofitable.

Growing Profit Margin: NEWR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NEWR is unprofitable, and losses have increased over the past 5 years at a rate of 42% per year.

Accelerating Growth: Unable to compare NEWR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NEWR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).

Return on Equity

High ROE: NEWR has a negative Return on Equity (-67.4%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is New Relic's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NEWR's short term assets ($1.1B) exceed its short term liabilities ($515.5M).

Long Term Liabilities: NEWR's short term assets ($1.1B) exceed its long term liabilities ($567.8M).

Debt to Equity History and Analysis

Debt Level: NEWR has more cash than its total debt.

Reducing Debt: Insufficient data to determine if NEWR's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NEWR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NEWR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Discover healthy companies

Dividend

What is New Relic current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NEWR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NEWR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NEWR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NEWR's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NEWR has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure

CEO

Bill Staples (48 yo)

0.92

Tenure

US$795,453

Compensation

Mr. William Staples, also known as Bill, serves as Chief Executive Officer and Director at New Relic, Inc. since July 1, 2021. He served as Chief Product Officer of New Relic, Inc. since February 14, 2020...

CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD795.45K) is below average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: NEWR's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: NEWR's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31