Elastic N.V. Ordinary Shares (ESTC)

FairStock Score: 46/100 — MIXED

Key Financials

Strengths

• Generates $387 million in annual free cash flow (8.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 17.7% demonstrates strong top-line momentum

Concerns

• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Elastic N.V. Ordinary Shares is a small-cap technology company valued at $4.7 billion. The business generates $1.7 billion in annual revenue with a 0.5% net margin and $387 million in free cash flow. From a quality standpoint, Elastic shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is 0.9% FCF yield. Growth dynamics show revenue growing at 17.7% and profit growth of 145.5%. Our composite FairStock Score of 46/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Elastic's 18% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $387 million in annual free cash flow (8.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer