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 and overvalued.


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

0.8%

NEWR

1.5%

US Software

1.3%

US Market


1 Year Return

-31.8%

NEWR

23.1%

US Software

5.9%

US Market

Return vs Industry: NEWR underperformed the US Software industry which returned 23.1% over the past year.

Return vs Market: NEWR underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

NEWRIndustryMarket
7 Day0.8%1.5%1.3%
30 Day4.6%-0.8%-1.9%
90 Day-30.6%-3.4%-1.8%
1 Year-31.8%-31.8%24.8%23.1%8.3%5.9%
3 Year73.1%73.1%122.8%114.1%45.6%36.2%
5 Yearn/a179.3%159.1%66.1%47.9%

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?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NEWR ($61.09) is trading below our estimate of fair value ($65.63)

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


Price To Earnings Ratio

PE vs Industry: NEWR is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (9.9x) compared to the US Software industry average (5.1x).


Next Steps

Future Growth

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

31.9%

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 (17.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NEWR's revenue (17.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NEWR's Return on Equity is forecast to be low in 3 years time (15.8%).


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

Earnings Trend: NEWR is unprofitable, but has reduced losses over the past 5 years at a rate of 4.6% 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 (19.1%).


Return on Equity

High ROE: NEWR has a negative Return on Equity (-14.28%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NEWR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NEWR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is New Relic's financial position?


Financial Position Analysis

Short Term Liabilities: NEWR's short term assets ($900.6M) exceeds its short term liabilities ($312.6M)

Long Term Liabilities: NEWR's short term assets (900.6M) exceeds its long term liabilities (478.5M)


Debt to Equity History and Analysis

Debt Level: NEWR's debt to equity ratio (113.5%) 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

Inventory Level: NEWR has a low level of unsold assets or inventory.

Debt Coverage by Assets: NEWR's debt is covered by short term assets (assets are 2.190590x 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.

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 110.9% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

2.8yrs

Average management tenure


CEO

Lew Cirne (49yo)

11.7yrs

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

Compensation vs. Market: Lew's total compensation ($USD4.29M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

2.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: NEWR's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

48.5yo

Average Age

Experienced Board: NEWR's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$4,282,09522 May 19
Peter Fenton
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares45,000
Max PriceUS$96.71
SellUS$1,914,30018 Dec 18
Mark Sachleben
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares22,500
Max PriceUS$85.08

Ownership Breakdown


Management Team

  • Lew Cirne (49yo)

    Founder

    • Tenure: 11.7yrs
    • Compensation: US$4.29m
  • Mark Sachleben (54yo)

    CFO & Corporate Secretary

    • Tenure: 11.5yrs
    • Compensation: US$2.54m
  • Mike Christenson (60yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$198.44k
  • Jim Gochee (49yo)

    Executive Officer

    • Tenure: 0.08yrs
    • Compensation: US$1.89m
  • Roger Scott

    Executive VP & Chief Customer Officer

    • Tenure: 2.8yrs
  • Kristy Friedrichs

    Chief People Officer

    • Tenure: 2.7yrs
  • Tony Righetti

    Senior Manager of Investor Relations

    • Tenure: 0yrs
  • Andrew Lawson

    Executive VP & GM of EMEA

    • Tenure: 0.4yrs

Board Members

  • Peter Fenton (46yo)

    Independent Chairman of the Board

    • Tenure: 10.9yrs
    • Compensation: US$237.27k
  • James Tolonen (69yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$237.61k
  • Caroline Carlisle (67yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$198.44k
  • Hope Cochran (48yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$266.33k
  • Lew Cirne (49yo)

    Founder

    • Tenure: 11.7yrs
    • Compensation: US$4.29m
  • Mike Christenson (60yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$198.44k
  • Adam Messinger (47yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$213.06k
  • Dan Scholnick (41yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$226.06k

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$3.568b
  • Shares outstanding: 58.41m
  • 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

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 Analysis2019/10/15 00:18
End of Day Share Price2019/10/14 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.