Last Updated: 11 Nov 2024
Executive Summary
Elastic NV (ESTC) is a search technology company with a market capitalization of $8.93 billion. The company has experienced revenue growth of 18.3% year-over-year but remains unprofitable, with an EBITDA loss of $104.3 million. Analysts are bullish on the stock, with a consensus target price of $100.96 and a majority of ratings indicating a "Buy" or "Strong Buy" recommendation.
Company Overview
Elastic NV provides search and data analytics solutions for various applications. Its flagship product, the Elastic Stack, includes Elasticsearch, Kibana, Logstash, and Beats. The company's offerings are used by organizations in various industries, including e-commerce, financial services, healthcare, and manufacturing.
Fundamental Analysis
Revenue: Revenue for the latest twelve months (TTM) was $1.32 billion, representing an 18.3% increase year-over-year.
Profitability: The company is currently unprofitable, with an EBITDA loss of $104.3 million and an operating margin of -9.69%.
Valuation: ESTC trades at a trailing price-to-earnings (PE) ratio of 142.54, a forward PE of 57.47, and a price-to-sales ratio of 6.76.
Financial Health: The company has a book value of $7.39 per share and no outstanding debt.
Technical Analysis
Trend: The stock is currently in a downtrend, with the 50-day moving average below the 200-day moving average.
Support and Resistance: Key support levels include $78.21 (50-day moving average) and $69 (52-week low). Key resistance levels include $86.95 (current price) and $100.96 (analyst target price).
Momentum: The relative strength index (RSI) is currently at 47.5, indicating neutral momentum.
Short Term Outlook
In the short term, ESTC is likely to face headwinds due to its high valuation and macroeconomic uncertainty. The stock may continue to trade within the range of $78.21 to $86.95.
Long Term Outlook
Analysts are bullish on the long-term prospects of ESTC. The company's strong product portfolio and growing customer base are expected to drive revenue growth in the coming years. However, profitability remains a concern, and investors should monitor the company's progress in improving its margins.
Analyst Recommendations
The consensus analyst recommendation for ESTC is "Buy." Five analysts rate the stock as "Strong Buy," 11 rate it as "Buy," 10 rate it as "Hold," and none rate it as "Sell" or "Strong Sell."
