Elastic N.V. (ESTC) on Decifer

Decifer ranks ESTC number 130 of 265 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 274% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 17% a year, profits grew 436% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• Strong returns near 274 percent and revenue up 17 percent are held back by no worldview growth reason despite momentum of 19 out of 35 and durability pressure.

The current read

The evidence on ESTC lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Cloud & Data Platform Migration: Enterprises are still mid-cycle in migrating compute, storage and applications off legacy on-prem stacks toward hybrid and public cloud architectures.

Read the full ESTC research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.