Elastic N.V. Ordinary Shares (ESTC)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Elastic N.V. traded at $94.32, a market value near $9.9B. I start with the business: it sells search and AI software, and the filed figures show scale but uneven profitability. In FY2026, the year ended 2026-04-30, revenue was $1.7B, net income $367.8M, diluted EPS $3.43, a sharp recovery from FY2025, when net income was -$108.1M and diluted EPS -$1.04. Yet in fiscal Q1 2027, the quarter ended 2026-07-31, revenue was $478.1M and net income was -$16.7M, or diluted EPS -$0.16. That swing tells me the turnaround is not yet proven. FairStock's P/E is 26.95, P/B 7.64, and Graham Number $31.17; at the 2026-10-13 close, the margin of safety is -202.60%, so price is far above asset-based value. FairStock's ROE is 33.12%, but its ROCE is -0.57%, and its EV/EBITDA is 522.81, warning signs that accounting returns may not reflect economic returns. FairStock's Piotroski F-Score is 4/9, Altman Z-Score 3.63, and D/E 0.46. Positive TTM free cash flow of $349.0M and a FairStock FCF yield of 3.5% are encouraging, but not enough to make me forget the quarterly loss. FairStock classifies it as a TURNAROUND because it returned to profit after a loss within the last three years. FairStock's PEG of 0.84 suggests growth-adjusted value, but only if growth persists. The moat from search/AI switching costs may exist, but the numbers alone do not yet prove durable pricing power. I would want consistent profits and returns before calling this a bargain.

In plain English: Elastic sells software that helps companies search, store, and study large amounts of data, including artificial intelligence tools. The business is growing sales and produces cash, but profits are uneven and it posted a quarterly loss in its latest reported period. At the recent close, the shares look expensive compared with the company's accounting value and current earnings.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-07-31) · fiscal Q3 2026 10-Q (period ended 2026-01-31) · fiscal Q2 2026 10-Q (period ended 2025-10-31) · fiscal Q1 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-04-30) · FY2025 10-K (period ended 2025-04-30) · FY2024 10-K (period ended 2024-04-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer