ELASTIC NV (ESTC) Stock Fundamental Analysis
NYSE:ESTC - New York Stock Exchange, Inc. - NL0013056914 - Common Stock - Currency: USD
Taking everything into account, ESTC scores 5 out of 10 in our fundamental rating. ESTC was compared to 285 industry peers in the Software industry. No worries on liquidiy or solvency for ESTC as it has an excellent financial health rating, but there are worries on the profitability. ESTC is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year ESTC was profitable.
ESTC had a positive operating cash flow in the past year.
In the past 5 years ESTC reported 4 times negative net income.
ESTC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.70%, ESTC is in line with its industry, outperforming 46.32% of the companies in the same industry.
The Return On Equity of ESTC (-15.46%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.7% | ||
| ROE | -15.46% | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of ESTC (74.13%) is better than 65.26% 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 | 74.13% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.19%
GM growth 5Y0.75%
2. Health
2.1 Basic Checks
ESTC does not have a ROIC to compare to the WACC, probably because it is not profitable.
ESTC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.60 indicates that ESTC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.60, ESTC is doing good in the industry, outperforming 64.91% of the companies in the same industry.
ESTC has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as ESTC would need 2.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.40, ESTC is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that ESTC is somewhat dependend on debt financing.
ESTC has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: ESTC underperforms 67.72% of its industry peers.
Although ESTC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 3.6 |
ROIC/WACCN/A
WACC7.94%
2.3 Liquidity
ESTC has a Current Ratio of 2.02. This indicates that ESTC is financially healthy and has no problem in meeting its short term obligations.
ESTC has a Current ratio of 2.02. This is in the better half of the industry: ESTC outperforms 61.05% of its industry peers.
ESTC has a Quick Ratio of 2.02. This indicates that ESTC is financially healthy and has no problem in meeting its short term obligations.
ESTC's Quick ratio of 2.02 is fine compared to the rest of the industry. ESTC outperforms 61.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
ESTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.33%, which is quite impressive.
The Revenue has grown by 17.95% in the past year. This is quite good.
The Revenue has been growing by 36.07% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)48.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)17.95%
Revenue growth 3Y27.71%
Revenue growth 5Y36.07%
Sales Q2Q%16.5%
3.2 Future
ESTC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.66% yearly.
Based on estimates for the next years, ESTC will show a quite strong growth in Revenue. The Revenue will grow by 17.10% on average per year.
EPS Next Y66.46%
EPS Next 2Y34%
EPS Next 3Y28.64%
EPS Next 5Y38.66%
Revenue Next Year16.94%
Revenue Next 2Y15.6%
Revenue Next 3Y15.27%
Revenue Next 5Y17.1%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.51, the valuation of ESTC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ESTC.
The average S&P500 Price/Earnings ratio is at 28.29. ESTC is valued rather expensively when compared to this.
ESTC is valuated quite expensively with a Price/Forward Earnings ratio of 35.42.
ESTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESTC is cheaper than 60.70% of the companies in the same industry.
ESTC is valuated expensively when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.51 | ||
| Fwd PE | 35.42 |
4.2 Price Multiples
ESTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ESTC is cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.33 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ESTC's earnings are expected to grow with 28.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y34%
EPS Next 3Y28.64%
5. Dividend
5.1 Amount
ESTC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
75.67
-2.2 (-2.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.89%
Inst Owner Change0.48%
Ins Owners15.41%
Ins Owner Change0.05%
Market Cap7.90B
Analysts81.21
Price Target136.09 (79.85%)
Short Float %2.98%
Short Ratio1.81
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)42.04%
Min EPS beat(2)31.56%
Max EPS beat(2)52.52%
EPS beat(4)4
Avg EPS beat(4)31.32%
Min EPS beat(4)4.95%
Max EPS beat(4)52.52%
EPS beat(8)8
Avg EPS beat(8)54.22%
EPS beat(12)12
Avg EPS beat(12)68.61%
EPS beat(16)16
Avg EPS beat(16)68.78%
Revenue beat(2)2
Avg Revenue beat(2)1.04%
Min Revenue beat(2)0.47%
Max Revenue beat(2)1.61%
Revenue beat(4)2
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.61%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.02%
Revenue beat(16)9
Avg Revenue beat(16)1.71%
PT rev (1m)0.06%
PT rev (3m)3.93%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)13.65%
EPS NY rev (1m)12.9%
EPS NY rev (3m)14.09%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.51 | ||
| Fwd PE | 35.42 | ||
| P/S | 5.53 | ||
| P/FCF | 33.33 | ||
| P/OCF | 32.9 | ||
| P/B | 9.2 | ||
| P/tB | 15 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.78
EY2.35%
EPS(NY)2.14
Fwd EY2.82%
FCF(TTM)2.27
FCFY3%
OCF(TTM)2.3
OCFY3.04%
SpS13.69
BVpS8.23
TBVpS5.05
PEG (NY)0.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.7% | ||
| ROE | -15.46% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.13% | ||
| FCFM | 16.58% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3Y0.19%
GM growth 5Y0.75%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 21.69% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 3.6 |
F-Score6
WACC7.94%
ROIC/WACCN/A
Cap/Depr(3y)23.34%
Cap/Depr(5y)64.33%
Cap/Sales(3y)0.46%
Cap/Sales(5y)1.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
EPS Next Y66.46%
EPS Next 2Y34%
EPS Next 3Y28.64%
EPS Next 5Y38.66%
Revenue 1Y (TTM)17.95%
Revenue growth 3Y27.71%
Revenue growth 5Y36.07%
Sales Q2Q%16.5%
Revenue Next Year16.94%
Revenue Next 2Y15.6%
Revenue Next 3Y15.27%
Revenue Next 5Y17.1%
EBIT growth 1Y29.52%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year63.82%
EBIT Next 3Y35.03%
EBIT Next 5Y12.43%
FCF growth 1Y12854.3%
FCF growth 3Y98.28%
FCF growth 5YN/A
OCF growth 1Y4645.79%
OCF growth 3Y87.55%
OCF growth 5YN/A