Elastic NV (ESTC, Financial), a software company based in Mountain View, California, has seen a significant surge in its stock price over the past three months. As of November 7, 2023, the company's market cap stands at $7.46 billion, with a stock price of $75.85. Over the past week, the stock price has seen a gain of 0.63%, and over the past three months, it has seen a substantial gain of 20.99%. According to the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is significantly undervalued, with a current GF Value of $120.96, down from $176.75 three months ago.
Unpacking Elastic NV's Business Model
Elastic NV operates in the software industry, focusing on search-adjacent products. Its search engine processes both structured and unstructured data, gleaning insights from that data. The firm's primary focus is on enterprise search, observability, and security.
Profitability Analysis
As of July 31, 2023, Elastic NV's Profitability Rank stands at 3 out of 10, indicating a relatively low level of profitability compared to other companies in the industry. The company's Operating Margin is -14.63%, which is better than 28.89% of the companies in the industry. The ROE is -54.30%, better than 14.41% of the companies, and the ROA is -13.06%, better than 26.51% of the companies. The ROIC is -19.57%, better than 24.27% of the companies.
Growth Prospects
Elastic NV's Growth Rank is 7 out of 10, indicating a relatively high level of growth compared to other companies in the industry. The 3-Year Revenue Growth Rate per Share is 27.20%, better than 82.52% of the companies, and the 5-Year Revenue Growth Rate per Share is 31.10%, better than 91.37% of the companies. The Total Revenue Growth Rate (Future 3Y To 5Y Est) is 18.32%, better than 75.3% of the companies. The 3-Year EPS without NRI Growth Rate is -1.40%, better than 36.11% of the companies, and the 5-Year EPS without NRI Growth Rate is -15.10%, better than 12.09% of the companies. The EPS Growth Rate (Future 3Y To 5Y Est) is 63.59%, better than 97.54% of the companies.
Major Holders of Elastic NV's Stock
The top three holders of Elastic NV's stock are Baillie Gifford (Trades, Portfolio), holding 7,582,321 shares (7.79% share percentage), Jim Simons (Trades, Portfolio), holding 200,977 shares (0.21% share percentage), and Joel Greenblatt (Trades, Portfolio), holding 17,298 shares (0.02% share percentage).
Competitive Landscape
Elastic NV's top three competitors in the software industry are Guidewire Software Inc (GWRE, Financial) with a stock market cap of $7.62 billion, DocuSign Inc (DOCU, Financial) with a stock market cap of $8.33 billion, and AppFolio Inc (APPF, Financial) with a stock market cap of $7.13 billion.
Conclusion
In conclusion, Elastic NV's stock performance has been impressive over the past three months, with a significant gain of 20.99%. Despite its low profitability rank, the company has shown strong growth prospects, with a high growth rank and promising future revenue and EPS growth rates. With major holders like Baillie Gifford (Trades, Portfolio) and Jim Simons (Trades, Portfolio), and strong competitors in the industry, Elastic NV is a company to watch in the software industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
