New Relic Stock Analysis, Valuation (NYSE:NEWR)

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$103.98 $1.79 (1.69%) NEWR stock closing price Aug 13, 2018 (Closing)

Watch the robo advisor video of New Relic stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for NEWR stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

New Relic Inc Stock Rating 2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for NEWR stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for New Relic valuation analysis. New Relic stock rating is our opinion about the business fundamentals of the company.

Should you buy NEWR stock?

  • The Year Over Year (YoY) revenue growth for New Relic was 34.2% in 2018-03.
  • The company has a healthy free cash flow margin of 6.1.

Should you sell NEWR stock?

  • New Relic registered a negative operating margin of -13.18 (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, New Relic had an average Net loss of -12.8%.
  • PE ratio is meaningless for NEWR stock as the company has losses.
  • The company is trading at a price to sales multiple of 16.3, which is higher in comparison to the Computer and Technology sector average of 2.9, making NEWR stock expensive.
  • A negative ROE of -22.8 indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and New Relic stock

Amigobulls New Relic stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of NEWR stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, New Relic revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.