ESTCESTC
US • —
$58.68
P/E
18.01
PEG
—
FCF Yield
5.3%
Rev Growth YoY
+17.3% YoY
Gross Margin
76.1%
Health Score
8/10
D/E Ratio
0.61
Confidence
MEDIUM
Business Snapshot
Elastic (ESTC) provides Elasticsearch, a search and analytics engine used for enterprise search, observability, and security applications, with its primary revenue source coming from its Elastic Cloud SaaS offering. The company operates in the rapidly growing data analytics and enterprise search market, competing against both established tech giants and niche players with a differentiated open-source-based model. With a market capitalisation of $6.07B, it is a mid-cap company whose TTM revenue is not available in the provided data, making financial scale difficult to assess from revenue alone. A defining characteristic is its strong free cash flow generation of $321.80M, which for a company at this stage signals efficient monetisation of its subscription base.
Financial Health
Elastic demonstrates robust profitability with a gross margin of 76.1% and a net margin (TTM) of 21.1% — the high gross margin indicates significant pricing power and a scalable business model, though a year-over-year comparison is not available to assess trend direction. The balance sheet is in good health, with a debt/equity ratio of just 0.61x reflecting moderate leverage, and a current ratio of 1.92x suggesting ample short-term liquidity to cover obligations...
Risk Assessment
- VALUATION DIVERGENCE — The FMP DCF fair value is unavailable, preventing a cross-check against the Python DCF estimate of $98.89, which introduces uncertainty around the single-model fair value.
- EARNINGS QUALITY — The company has beaten estimates in 4 of 4 recent quarters, which is a positive signal — no earnings quality risk is evident from the data.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER SELLING — A net insider sell activity over the last 90 days (0 buys vs 7 sells) represents a cautious signal that insiders are reducing their exposure at current levels.
- DEBT / LIQUIDITY — The D/E ratio of 0.61x is well below 1.5x and the current ratio of 1.92x is above 1.0x, so no debt or liquidity risk is flagged by the data....
Elastic demonstrates robust profitability with a gross margin of 76.1% and a net margin (TTM) of 21.1% — the high gross margin indicates significant pricing power and a scalable business model, though a year-over-year comparison is not available to assess trend direction. The balance sheet is in good health, with a debt/equity ratio of just 0.61x reflecting moderate leverage, and a current ratio of 1.92x suggesting ample short-term liquidity to cover obligations. Free cash flow is a strong positive at $321.80M, translating to a free cash flow yield of 5.3%, which is attractive and indicates the company generates cash well in excess of reinvestment needs. This financial profile positions the company well for potential reinvestment into growth, acquisitions, or share buybacks without needing to raise external capital.
- VALUATION DIVERGENCE — The FMP DCF fair value is unavailable, preventing a cross-check against the Python DCF estimate of $98.89, which introduces uncertainty around the single-model fair value. - EARNINGS QUALITY — The company has beaten estimates in 4 of 4 recent quarters, which is a positive signal — no earnings quality risk is evident from the data. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER SELLING — A net insider sell activity over the last 90 days (0 buys vs 7 sells) represents a cautious signal that insiders are reducing their exposure at current levels. - DEBT / LIQUIDITY — The D/E ratio of 0.61x is well below 1.5x and the current ratio of 1.92x is above 1.0x, so no debt or liquidity risk is flagged by the data.
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