NYSE:NEWR

Stock Analysis Report

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Executive Summary

New Relic, Inc., a software-as-a-service company, provides platform that companies use to build, develop, and operate their digital businesses worldwide. More Details


Snowflake Analysis

Adequate balance sheet with concerning outlook.


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

Stable Share Price: NEWR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.05%

NEWR

0.6%

US Software

1.8%

US Market


1 Year Return

-11.3%

NEWR

44.7%

US Software

14.2%

US Market

Return vs Industry: NEWR underperformed the US Software industry which returned 48.1% over the past year.

Return vs Market: NEWR underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

NEWRIndustryMarket
7 Day-0.05%0.6%1.8%
30 Day-1.4%1.3%0.04%
90 Day-19.6%8.8%9.8%
1 Year-11.3%-11.3%45.7%44.7%16.7%14.2%
3 Year16.8%16.8%147.9%139.7%41.6%32.2%
5 Year43.8%43.8%270.9%249.7%90.9%69.5%

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 compared to its fair value and its price relative to the market?

8.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NEWR ($56.83) is trading above our estimate of fair value ($42.39)

Significantly Below Fair Value: NEWR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEWR is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: NEWR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NEWR is overvalued based on its PB Ratio (8.7x) compared to the US Software industry average (7x).


Next Steps

Future Growth

How is New Relic forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

7.6%

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 (13.5% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: NEWR's revenue (13.5% 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 (8.6%).


Next Steps

Past Performance

How has New Relic performed over the past 5 years?

-2.2%

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 2.2% 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 (15.1%).


Return on Equity

High ROE: NEWR has a negative Return on Equity (-26.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is New Relic's financial position?


Financial Position Analysis

Short Term Liabilities: NEWR's short term assets ($992.7M) exceed its short term liabilities ($352.9M).

Long Term Liabilities: NEWR's short term assets ($992.7M) exceed its long term liabilities ($505.1M).


Debt to Equity History and Analysis

Debt Level: NEWR's debt to equity ratio (109.7%) is considered high.

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: Whilst unprofitable NEWR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NEWR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 59.4% per year.


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NEWR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Lew Cirne (50 yo)

12.58yrs

Tenure

US$5,122,230

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

Compensation vs Market: Lew's total compensation ($USD5.12M) is about average for companies of similar size in the US market ($USD5.65M).

Compensation vs Earnings: Lew's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Lewis Cirne
Founder12.58yrsUS$5.12m10.3%
$ 347.8m
Michael Christenson
President2.08yrsUS$11.30m0.10%
$ 3.4m
Mark Sachleben
CFO & Corporate Secretary12.42yrsUS$2.65m0.61%
$ 20.7m
William Staples
Chief Product Officer0.58yrUS$5.68mno data
Gregory Ouillon
EMEA Field Chief Technology Officer0.92yrno datano data
Peter Goldmacher
Vice President of Investor Relationsno datano datano data
Seema Kumar
Chief Marketing Officer0.33yrno datano data
Kristy Friedrichs
Chief People Officer3.58yrsno datano data
Dmitri Chen
Executive VP and GM of Asia-Pacific & Japan0.83yrno datano data
Bonney Pelley
Senior Vice President of Business Operationsno datano datano data
Jay Snyder
Executive VP & Chief Customer Officer0.33yrno datano data
John Siebert
Executive Vice President of Sales for Americas0.083yrno datano data

0.9yrs

Average Tenure

50yo

Average Age

Experienced Management: NEWR's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lewis Cirne
Founder12.58yrsUS$5.12m10.3%
$ 347.8m
Michael Christenson
President2.08yrsUS$11.30m0.10%
$ 3.4m
James Tolonen
Independent Director4.33yrsUS$237.54k0.015%
$ 503.0k
Caroline Carlisle
Independent Director2.08yrsUS$211.84k0.0044%
$ 148.3k
Hope Cochran
Independent Chairman0.083yrUS$220.02k0.0047%
$ 158.8k
David Henshall
Director0.083yrno datano data
Adam Messinger
Independent Director6.42yrsUS$214.84k0.073%
$ 2.5m
Daniel Scholnick
Independent Director11.92yrsUS$222.37k0.061%
$ 2.1m
Anne DelSanto
Director0.083yrno datano data

2.1yrs

Average Tenure

52yo

Average Age

Experienced Board: NEWR's board of directors are not considered experienced ( 2.1 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: NEWR 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 3.1%.


Top Shareholders

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$3.378b
  • Shares outstanding: 60.24m
  • Website: https://www.newrelic.com

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
NEWR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2014

Biography

New Relic, Inc., a software-as-a-service company, provides platform that companies use to build, develop, and operate their digital businesses worldwide. It offers a suite of products on its open and exten ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 06:06
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.