NYSE:NEWR

Stock Analysis Report

Executive Summary

New Relic, Inc., a software-as-a-service company, provides various digital products worldwide.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.

Risks

  • New Relic has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has New Relic's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.8%

NYSE:NEWR

-3.0%

US Software

-1.0%

US Market


1 Year Return

-42.8%

NYSE:NEWR

18.4%

US Software

-0.4%

US Market

NEWR underperformed the Software industry which returned 18.4% over the past year.

NEWR underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

NEWRIndustryMarket
7 Day-8.8%-3.0%-1.0%
30 Day-34.2%-3.9%-3.3%
90 Day-39.3%0.9%0.4%
1 Year-42.8%-42.8%20.1%18.4%1.8%-0.4%
3 Year62.3%62.3%115.1%106.6%39.4%30.4%
5 Yearn/a161.0%142.0%54.2%37.1%

Price Volatility Vs. Market

How volatile is New Relic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Relic undervalued based on future cash flows and its price relative to the stock market?

28%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

New Relic's share price is below the future cash flow value, and at a moderate discount (> 20%).

New Relic's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

New Relic is loss making, we can't compare its value to the US Software industry average.

New Relic is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for New Relic, we can't assess if its growth is good value.


Price Based on Value of Assets

New Relic is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is New Relic expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

New Relic's revenue is expected to grow significantly at over 20% yearly.

New Relic is not considered high growth as it is expected to be loss making for the next 1-3 years.

New Relic's revenue growth is expected to exceed the United States of America market average.

Unable to compare New Relic's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare New Relic's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

New Relic is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has New Relic performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

New Relic does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare New Relic's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare New Relic's 1-year growth to the US Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if New Relic has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if New Relic has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if New Relic improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is New Relic's financial position?


Financial Position Analysis

New Relic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

New Relic's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

New Relic's level of debt (113.5%) compared to net worth is high (greater than 40%).

Unable to establish if New Relic's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.2x debt.


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.

Whilst loss making New Relic has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making New Relic has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -110.9% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate New Relic's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate New Relic's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as New Relic has not reported any payouts.

Unable to verify if New Relic's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as New Relic has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of New Relic's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of New Relic's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Lew Cirne (49yo)

11.5yrs

Tenure

US$4,292,404

Compensation

Mr. Lewis Cirne, also known as Lew, founded New Relic, Inc. in 2008 and has been its Chief Executive Officer since February 2008. Mr. Cirne serves as a Strategic Limited Partner at The Four Rivers Group. H ...


CEO Compensation Analysis

Lew's remuneration is about average for companies of similar size in United States of America.

Lew's compensation has increased whilst company is loss making.


Management Age and Tenure

2.5yrs

Average Tenure

49yo

Average Age

The tenure for the New Relic management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

49yo

Average Age

The tenure for the New Relic board of directors is about average.


Insider Trading

New Relic individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$4,282,09522 May 19
Peter Fenton
EntityIndividual
Role
Chairman of the Board
Shares45,000
Max PriceUS$96.71
SellUS$1,914,30018 Dec 18
Mark Sachleben
EntityIndividual
Role
CFO & Corporate Secretary
Shares22,500
Max PriceUS$85.08
SellUS$2,389,50017 Sep 18
Mark Sachleben
EntityIndividual
Role
CFO & Corporate Secretary
Shares22,500
Max PriceUS$106.20
SellUS$5,688,37514 Sep 18
Peter Fenton
EntityIndividual
Role
Chairman of the Board
Shares51,971
Max PriceUS$110.24

Ownership Breakdown


Management Team

  • Lew Cirne (49yo)

    Founder

    • Tenure: 11.5yrs
    • Compensation: $4.29m
  • Mark Sachleben (54yo)

    CFO & Corporate Secretary

    • Tenure: 11.3yrs
    • Compensation: $2.54m
  • Jim Gochee (49yo)

    Chief Technology Officer

    • Tenure: 0.2yrs
    • Compensation: $1.89m
  • Erica Schultz (45yo)

    Chief Revenue Officer

    • Tenure: 1.3yrs
    • Compensation: $4.23m
  • Roger Scott

    Executive VP & Chief Customer Officer

    • Tenure: 2.7yrs
  • Kristy Friedrichs

    Chief People Officer

    • Tenure: 2.5yrs
  • Tony Righetti

    Senior Manager of Investor Relations

  • Andrew Lawson

    Executive VP & GM of EMEA

    • Tenure: 0.3yrs

Board Members

  • James Tolonen (69yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: $237.61k
  • Caroline Carlisle (67yo)

    Director

    • Tenure: 1.0yrs
    • Compensation: $198.44k
  • Lew Cirne (49yo)

    Founder

    • Tenure: 11.5yrs
    • Compensation: $4.29m
  • Dan Scholnick (41yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: $226.06k
  • Hope Cochran (48yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: $266.33k
  • Peter Fenton (46yo)

    Chairman of the Board

    • Tenure: 10.8yrs
    • Compensation: $237.27k
  • Sohaib Abbasi (62yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: $217.62k
  • Mike Christenson (60yo)

    Director

    • Tenure: 1.0yrs
    • Compensation: $198.44k
  • Adam Messinger (47yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: $213.06k

Company Information

New Relic, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Relic, Inc.
  • Ticker: NEWR
  • Exchange: NYSE
  • Founded: 2007
  • Industry: application software
  • Sector: software
  • Market Cap: US$3.358b
  • Shares outstanding: 58.41m
  • Website: Click here

Number of Employees


Location

  • New Relic, Inc.
  • 188 Spear Street
  • Suite 1200
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEWRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2014
2NRDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2014
0K79LSE (London Stock Exchange)YesCommon StockGBUSDDec 2014

Biography

New Relic, Inc., a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to colle ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 01:00
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.