Elastic N.V.ESTC
NYSE • Technology
$48.30
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+17.7% YoY
Gross Margin
76.3%
Health Score
7/10
D/E Ratio
0.64
Confidence
MEDIUM
Business Snapshot
Elastic N.V. is a software company specialising in enterprise search, observability, and security solutions built on the Elastic Stack (Elasticsearch, Kibana, Beats, Logstash). Its primary revenue-generating products are Elastic Cloud (SaaS) and self-managed software subscriptions. The company operates in the rapidly growing market for search-powered analytics and observability, competing with vendors like Splunk and Datadog, and holds a strong position as the leading open-source-based search platform. With TTM revenue of $1.68B, Elastic is a substantial player in the software application industry, distinguished by its open-source heritage and strong developer community that drives adoption.
Financial Health
Gross margin stands at 76.3%, slightly up from 75.9% last year, indicating healthy pricing power and cost management. However, net margin remains negative at -5.0%, highlighting that the company is not yet profitable on a GAAP basis...
Risk Assessment
- EARNINGS QUALITY — The company has negative GAAP net income of -$84.52M over the trailing twelve months, with net margin of -5.0%, indicating persistent unprofitability despite recent improvement.
- VALUATION — Without a P/E ratio, traditional valuation is opaque; a price/sales of 3.09x and price/book of 9.81x suggest a premium to asset book value, requiring confidence in future profitability.
- 52-WEEK POSITION — The current price of $48.30 is well below the 52-week midpoint of $69.06, and 49.7% below the 52-week high of $96.07, reflecting significant recent price depreciation.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The FMP DCF fair value of $51.03 suggests undervaluation, but the Python DCF was not calculable, creating a gap in model-based support....