Elastic N.V. (ESTC) on Decifer

Decifer ranks ESTC number 131 of 274 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.
• Improving returns near 274% and revenue up about 17% a year have momentum at 27 out of 35 but no growth role to invest behind.

The current read

The evidence on ESTC lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 1.9% this week, worth watching but not the weight of the evidence.

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.