New Relic, Inc.Find Ratings Reports
NEW RELIC INC's gross profit margin for the second quarter of its fiscal year 2021 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. NEW RELIC INC is extremely liquid. Currently, the Quick Ratio is 2.44 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 11.75% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||195.69||166.05|
|Net Income ($mil)||-53.77||-47.55|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||783.51||839.78|
|Total Assets ($mil)||1287.48||1243.48|
|Total Debt ($mil)||560.12||505.14|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||73.54||80.35|
|Return on Assets||-19.22||-10.65|
|Return on Equity||-72.39||-34.19|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||65.38||60.97|
|Div / share||0.0||0.0|
|Book value / share||5.23||6.35|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||726520.0||453335.0|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 20.18 indicates a significant premium versus the S&P 500 average of 4.61 and a significant discount versus the subsector average of 25.92. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, NEW RELIC INC proves to trade at a discount to investment alternatives.
|NEWR NM||Peers 72.80||NEWR NM||Peers 145.26|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
NEWR's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
NEWR's P/CF is negative making the measure meaningless.
|NEWR 10552.00||Peers 581.05||NEWR NA||Peers 1.27|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
NEWR's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|NEWR 20.18||Peers 25.92||NEWR -77.47||Peers 110.03|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
NEWR is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, NEWR is expected to significantly trail its peers on the basis of its earnings growth rate.
|NEWR 9.65||Peers 14.51||NEWR 11.51||Peers 48.06|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
NEWR is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
NEWR significantly trails its peers on the basis of sales growth.