New Relic, Inc. [NYSE:NEWR]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to New Relic, Inc. [NEWR], the most recently available average analyst rating is from the quarter that ends in March. On average, stock market experts give NEWR an Outperform rating. Its stock price has been found in the range of 70.30 to 114.78. This is compared to its latest closing price of $100.82.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for New Relic, Inc. [NEWR] is sitting at 1.94. This is compared to 1 month ago, when its average rating was 1.94.
For the quarter ending in Mar-19 New Relic, Inc. [NEWR] generated $0.13 billion in sales. That’s 3.12% higher than the average estimate of $0.13 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Tue 6 Aug (In 82 Days).
Fundamental Analysis of New Relic, Inc. [NEWR]
Now let’s turn to look at profitability: with a current Operating Margin for New Relic, Inc. [NEWR] sitting at -13.18 and its Gross Margin at +82.33, this company’s Net Margin is now -7.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -23.29, and its Return on Invested Capital has reached -22.20%. Its Return on Equity is -22.55, and its Return on Assets is -11.39. These metrics suggest that this New Relic, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
What about valuation? This company’s Enterprise Value to EBITDA is 281.08. The Enterprise Value to Sales for this firm is now 12.13. New Relic, Inc. [NEWR] has a Price to Book Ratio of 19.28, a Price to Cash Flow Ratio of 113.96.
Shifting the focus to workforce efficiency, New Relic, Inc. [NEWR] earns $276,525 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.40 and its Total Asset Turnover is 0.89. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.66 and its Current Ratio is 1.66. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
New Relic, Inc. [NEWR] has 57.24M shares outstanding, amounting to a total market cap of $5.77B. Its stock price has been found in the range of 70.30 to 114.78. At its current price, it has moved by -12.51% from its 52-week high, and it has moved 42.84% from its 52-week low.
This stock’s Beta value is currently 1.01, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 43.27. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is New Relic, Inc. [NEWR] a Reliable Buy?
Shares of New Relic, Inc. [NEWR], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.