ELASTIC NV (ESTC) Stock Fundamental Analysis
NYSE:ESTC - New York Stock Exchange, Inc. - NL0013056914 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ESTC. ESTC was compared to 282 industry peers in the Software industry. The financial health of ESTC is average, but there are quite some concerns on its profitability. ESTC is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year ESTC was profitable.
ESTC had a positive operating cash flow in the past year.
ESTC had negative earnings in 4 of the past 5 years.
In the past 5 years ESTC always reported a positive cash flow from operatings.
1.2 Ratios
ESTC has a Return On Assets of -4.16%. This is comparable to the rest of the industry: ESTC outperforms 51.06% of its industry peers.
ESTC has a Return On Equity (-11.64%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.16% | ||
| ROE | -11.64% | ||
| ROIC | N/A |
ROA(3y)-4.99%
ROA(5y)-8.13%
ROE(3y)-20.84%
ROE(5y)-28.06%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ESTC has a Gross Margin of 74.39%. This is in the better half of the industry: ESTC outperforms 64.18% of its industry peers.
In the last couple of years the Gross Margin of ESTC has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for ESTC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.6%
GM growth 5Y0.85%
2. Health
2.1 Basic Checks
ESTC does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ESTC has more shares outstanding
The number of shares outstanding for ESTC has been increased compared to 5 years ago.
ESTC has a better debt/assets ratio than last year.
2.2 Solvency
ESTC has an Altman-Z score of 3.52. This indicates that ESTC is financially healthy and has little risk of bankruptcy at the moment.
ESTC has a Altman-Z score of 3.52. This is in the better half of the industry: ESTC outperforms 60.99% of its industry peers.
ESTC has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as ESTC would need 2.18 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.18, ESTC is doing good in the industry, outperforming 67.73% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that ESTC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, ESTC is doing worse than 67.02% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for ESTC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 3.52 |
ROIC/WACCN/A
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.92 indicates that ESTC should not have too much problems paying its short term obligations.
ESTC has a Current ratio (1.92) which is comparable to the rest of the industry.
A Quick Ratio of 1.92 indicates that ESTC should not have too much problems paying its short term obligations.
ESTC's Quick ratio of 1.92 is in line compared to the rest of the industry. ESTC outperforms 59.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.43% over the past year.
Looking at the last year, ESTC shows a quite strong growth in Revenue. The Revenue has grown by 17.04% in the last year.
ESTC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.24% yearly.
EPS 1Y (TTM)71.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%123.81%
Revenue 1Y (TTM)17.04%
Revenue growth 3Y19.81%
Revenue growth 5Y28.24%
Sales Q2Q%15.95%
3.2 Future
The Earnings Per Share is expected to grow by 27.47% on average over the next years. This is a very strong growth
ESTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.95% yearly.
EPS Next Y13.47%
EPS Next 2Y14.34%
EPS Next 3Y15.59%
EPS Next 5Y27.47%
Revenue Next Year13.02%
Revenue Next 2Y12.71%
Revenue Next 3Y13.39%
Revenue Next 5Y14.95%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 41.31, ESTC can be considered very expensive at the moment.
ESTC's Price/Earnings ratio is a bit cheaper when compared to the industry. ESTC is cheaper than 63.83% of the companies in the same industry.
ESTC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 36.41, the valuation of ESTC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESTC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ESTC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.31 | ||
| Fwd PE | 36.41 |
4.2 Price Multiples
71.99% of the companies in the same industry are more expensive than ESTC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.61 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ESTC's earnings are expected to grow with 15.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.07
PEG (5Y)N/A
EPS Next 2Y14.34%
EPS Next 3Y15.59%
5. Dividend
5.1 Amount
ESTC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.27
-0.43 (-0.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners84.65%
Inst Owner Change0.03%
Ins Owners12.94%
Ins Owner Change1.54%
Market Cap8.89B
Analysts82.94
Price Target114.13 (35.43%)
Short Float %3.9%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.49%
Min EPS beat(2)23.43%
Max EPS beat(2)31.56%
EPS beat(4)4
Avg EPS beat(4)35.94%
Min EPS beat(4)23.43%
Max EPS beat(4)52.52%
EPS beat(8)8
Avg EPS beat(8)41.46%
EPS beat(12)12
Avg EPS beat(12)68.28%
EPS beat(16)16
Avg EPS beat(16)67.05%
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.12%
Max Revenue beat(2)1.61%
Revenue beat(4)3
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.61%
Revenue beat(8)5
Avg Revenue beat(8)0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.17%
Revenue beat(16)9
Avg Revenue beat(16)1.12%
PT rev (1m)-1.29%
PT rev (3m)-16.14%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)8.47%
EPS NY rev (3m)8.42%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.31 | ||
| Fwd PE | 36.41 | ||
| P/S | 5.93 | ||
| P/FCF | 33.61 | ||
| P/OCF | 33.06 | ||
| P/B | 9.49 | ||
| P/tB | 14.75 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.04
EY2.42%
EPS(NY)2.31
Fwd EY2.75%
FCF(TTM)2.51
FCFY2.98%
OCF(TTM)2.55
OCFY3.03%
SpS14.21
BVpS8.88
TBVpS5.71
PEG (NY)3.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.16% | ||
| ROE | -11.64% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.39% | ||
| FCFM | 17.65% |
ROA(3y)-4.99%
ROA(5y)-8.13%
ROE(3y)-20.84%
ROE(5y)-28.06%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.6%
GM growth 5Y0.85%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 35.28% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 3.52 |
F-Score6
WACC7.95%
ROIC/WACCN/A
Cap/Depr(3y)22.57%
Cap/Depr(5y)25.6%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)71.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%123.81%
EPS Next Y13.47%
EPS Next 2Y14.34%
EPS Next 3Y15.59%
EPS Next 5Y27.47%
Revenue 1Y (TTM)17.04%
Revenue growth 3Y19.81%
Revenue growth 5Y28.24%
Sales Q2Q%15.95%
Revenue Next Year13.02%
Revenue Next 2Y12.71%
Revenue Next 3Y13.39%
Revenue Next 5Y14.95%
EBIT growth 1Y55.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year24.8%
EBIT Next 3Y22.72%
EBIT Next 5Y15.87%
FCF growth 1Y80.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y78.92%
OCF growth 3Y260.74%
OCF growth 5YN/A