Elastic N.V. (ESTC) Stock Analysis

Analysis from 10-Q filed 2026-08-28. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC -1.6%. FCF margin 19.4%. D/E 0.4x. Source: 10-Q filed 2026-08-28.

Metric	Value	Context
ROIC	-1.6%	Below expectations
FCF Margin	19.4%	Strong cash generation
Debt/Equity	0.4x	Conservative leverage

ROIC -1.6% — Bottom 50% of sector peers. FCF margin 19.4% — Top 50%.

Explore Elastic N.V.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ESTC: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Elastic N.V. earns -1.6% ROIC, Bottom 50% in Technology

ROIC TTM -1.6%, sector median 3.7%, Bottom 50%. DuPont: NOPAT margin -1.5% × asset turnover 0.7x. Gross margin 75.5%. Operating margin -2.6%. Source: 10-Q filed 2026-08-28.

Metric	ESTC	Rating	Context
Return on Invested Capital (ROIC)	-1.6%	Red flag	Below sector median of 3.7%
Return on Equity (ROE)	36.7%	Excellent	Efficient use of shareholder equity
Gross Margin	75.5%	Excellent	Strong pricing power
Operating Margin	-2.6%	Warning	Moderate operational efficiency

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Cash Flow: Elastic N.V. generates $349.0M FCF at 19.4% margin, positive NaN/8 quarters

FCF TTM $349.0M. FCF margin 19.4%, Top 50%. OCF/Net income 0.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-28.

Metric	ESTC	Rating	Context
Free Cash Flow Margin	19.4%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$349.0M	Good	Positive cash generation
OCF/Net Income	0.9x	Good	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Elastic N.V. at 0.4x leverage, -1.9x interest coverage

Debt/Equity 0.4x. Net cash $889.8M. Interest coverage -1.9x. Source: 10-Q filed 2026-08-28.

Metric	ESTC	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$889.8M	Excellent	Net cash positive
Interest Coverage	-1.9x	Warning	Monitor debt obligations

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Valuation: Elastic N.V. trades at 25.6x earnings

P/E 25.6x. EV/Sales 4.9x. FCF yield 3.6%. Source: 10-Q filed 2026-08-28.

Metric	ESTC	Rating	Context
P/E Ratio	25.6x	Adequate	Premium valuation
EV/Sales	4.9x	Good	Growth premium priced in
FCF Yield	3.6%	Adequate	Lower cash yield

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Capital Allocation: Elastic N.V. returns 3.9% shareholder yield, reducing shares 1.1% YoY

Total shareholder yield 3.9% (buyback 3.9%). Share count -1.1% YoY. Capital returned $380.1M TTM. Source: 10-Q filed 2026-08-28.

Metric	ESTC	Rating	Context
Total Shareholder Yield	3.9%	Good	Dividend + buyback yield combined
Buyback Yield	3.9%	Good	Active share repurchases
Share Count Change (YoY)	-1.1%	Good	Net share reduction (accretive)
Total Capital Returned (TTM)	$380.1M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	-1.6%	Bottom 50%	-0.4x below
Free Cash Flow Margin	19.4%	Top 50%	1.9x above
Gross Margin	75.5%	Top 25%	1.5x above
Operating Margin	-2.6%	Bottom 50%	-0.6x below
Return on Equity (ROE)	36.7%	Top 25%	6.9x above
P/E Ratio	25.6x	N/A	-

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Financial Scorecard

Metric	ESTC	Rating	Sector Context
Return on Invested Capital (ROIC)	-1.6%	Red flag	Bottom 50% of sector (median: 3.7%)
Free Cash Flow Margin	19.4%	Good	Top 50% of sector (median: 10.3%)
Gross Margin	75.5%	Excellent	Top 25% of sector (median: 50.5%)
Debt to Equity Ratio	44.0%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	25.6x	Adequate	Growth premium
Free Cash Flow Yield	3.6%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is Elastic N.V.'s Return on Invested Capital (ROIC)?

Elastic N.V. (ESTC) has a trailing twelve-month Return on Invested Capital (ROIC) of -1.6%. The 8-quarter median ROIC is -1.9% with a declining trend. Sector median 3.7%. Source: 10-Q filed 2026-08-28.

Q: What is Elastic N.V.'s Free Cash Flow Margin?

Elastic N.V. (ESTC) has a free cash flow margin of 19.4%, generating $349.0 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-28.

Q: What is Elastic N.V.'s P/E ratio and how does it compare to peers?

Elastic N.V. (ESTC) trades at a P/E ratio of 25.6x, which is above the sector median of N/A. EV/Sales 4.9x. FCF yield 3.6%. Source: 10-Q filed 2026-08-28.

Q: What is Elastic N.V.'s revenue and earnings growth?

Elastic N.V. (ESTC) grew revenue by 16.2% year-over-year. Source: 10-Q filed 2026-08-28.

Q: Is Elastic N.V. buying back stock?

Elastic N.V. (ESTC) repurchased $380.1 million of stock over the trailing twelve months. This represents a buyback yield of 3.9%. Share count -1.1% YoY. Source: 10-Q filed 2026-08-28.

Q: How does Elastic N.V. compare to competitors in Technology?

Compared to other companies in Technology, Elastic N.V. (ESTC) shows: ROIC -1.6%, sector median 3.7% (Bottom 50%). FCF margin 19.4%, sector median 10.3% (Top 50%). Gross margin 75.5%, 25.0pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Elastic N.V.?

No quantitative warning flags fired for Elastic N.V. (ESTC) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2026-08-28.

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Data Source: Data sourced from 10-Q filed 2026-08-28. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.