NYSE:ESTC

Stock Analysis Report

Executive Summary

Elastic N.V., a search company, delivers technology that enables users to search through structured and unstructured data for a range of consumer and enterprise applications.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has Elastic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESTC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

ESTC

-2.6%

US Software

-1.0%

US Market


1 Year Return

-22.7%

ESTC

35.8%

US Software

18.0%

US Market

Return vs Industry: ESTC underperformed the US Software industry which returned 35.8% over the past year.

Return vs Market: ESTC underperformed the US Market which returned 18% over the past year.


Shareholder returns

ESTCIndustryMarket
7 Day0.2%-2.6%-1.0%
30 Day7.0%4.9%0.6%
90 Day-7.8%15.2%7.9%
1 Year-22.7%-22.7%37.3%35.8%20.4%18.0%
3 Yearn/a145.0%134.6%48.0%38.5%
5 Yearn/a214.6%191.9%72.2%53.3%

Price Volatility Vs. Market

How volatile is Elastic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Elastic undervalued compared to its fair value and its price relative to the market?

13.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ESTC ($72.78) is trading above our estimate of fair value ($0.58)

Significantly Below Fair Value: ESTC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ESTC is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: ESTC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESTC is overvalued based on its PB Ratio (13.5x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Elastic forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESTC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ESTC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ESTC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ESTC's revenue (29.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ESTC's revenue (29.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESTC is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Elastic performed over the past 5 years?

-83.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ESTC is currently unprofitable.

Growing Profit Margin: ESTC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ESTC's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare ESTC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ESTC is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: ESTC has a negative Return on Equity (-34.15%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Elastic's financial position?


Financial Position Analysis

Short Term Liabilities: ESTC's short term assets ($433.1M) exceed its short term liabilities ($264.7M).

Long Term Liabilities: ESTC's short term assets ($433.1M) exceed its long term liabilities ($68.9M).


Debt to Equity History and Analysis

Debt Level: ESTC is debt free.

Reducing Debt: ESTC has not had any debt for past 5 years.


Balance Sheet

Inventory Level: ESTC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ESTC's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ESTC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ESTC has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -29.2% each year


Next Steps

Dividend

What is Elastic's current dividend yield, its reliability and sustainability?

0.049%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.05%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ESTC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ESTC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ESTC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ESTC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ESTC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Shay Banon (42yo)

2.8yrs

Tenure

US$499,760

Compensation

Mr. Shay Banon is Founder of Elastic N.V. and also serves as its Chairman since June 2018. He serves as Chief Executive Officer of Elastic N.V. since May 2017 and also serves as its Director since July 201 ...


CEO Compensation Analysis

Compensation vs Market: Shay's total compensation ($USD499.76K) is below average for companies of similar size in the US market ($USD6.35M).

Compensation vs Earnings: Shay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shay Banon
Co-Founder2.8yrsUS$499.76k10.46% $614.4m
Steven Schuurman
Co-Founder & Non-Executive Director7.6yrsUS$17.28k7.32% $430.2m
Janesh Moorjani
Chief Financial Officer2.5yrsUS$472.41k0.012% $717.2k
Aaron Katz
Chief Revenue Officer5.6yrsUS$685.65k0.40% $23.4m
Uri Boness
0yrsno datano data
Simon Willnauer
0yrsno datano data
Robin Sharpe
Vice President of Operations0yrsno datano data
Anthony Luscri
VP of Investor Relations0yrsno datano data
W. H. Garrett
Senior VP & General Counsel4.6yrsno data0.075% $4.4m
Justin Hoffman
Vice President of Sales6.8yrsno datano data

4.6yrs

Average Tenure

44yo

Average Age

Experienced Management: ESTC's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shay Banon
Co-Founder2.8yrsUS$499.76k10.46% $614.4m
Steven Schuurman
Co-Founder & Non-Executive Director7.6yrsUS$17.28k7.32% $430.2m
Peter Fenton
Independent Non-Executive Director7.4yrsUS$26.50k0.26% $15.4m
Michelangelo A. Volpi
Independent Vice Chairman of the Board0yrsno datano data
Jonathan Chadwick
Independent Non-Executive Director1.5yrsUS$1.68m0.0028% $166.8k
Caryn Marooney
Independent Director0.8yrsUS$87.66k0.0013% $75.2k
Chetan Puttagunta
Lead Independent Director1.7yrsUS$30.30kno data
Alison Gleeson
Non-Executive Director0.08yrsno datano data

1.7yrs

Average Tenure

48.5yo

Average Age

Experienced Board: ESTC's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 107.8%.


Top Shareholders

Company Information

Elastic N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Elastic N.V.
  • Ticker: ESTC
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$5.874b
  • Shares outstanding: 80.71m
  • Website: https://www.elastic.co

Number of Employees


Location

  • Elastic N.V.
  • 800 West El Camino Real
  • Suite 350
  • Mountain View
  • California
  • 94040
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESTCNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDOct 2018
ESTC NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 2018

Biography

Elastic N.V., a search company, delivers technology that enables users to search through structured and unstructured data for a range of consumer and enterprise applications. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as perform search, analysis, and visualization. The company’s Elastic Stack product comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems. It also provides software solutions on the Elastic Stack that address cases, including app search, site search, enterprise search, logging, metrics, application performance monitoring, business analytics, and security analytics. Its products are used by individual developers and organizations of a range of industries. The company was founded in 2012 and is headquartered in Mountain View, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 02:50
End of Day Share Price2020/02/21 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.