Is Elastic N.V. (ESTC) Halal?

NYSE Technology Netherlands $5.1B
✓ HALAL
Confidence: 95/100
Elastic N.V. (ESTC) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 10.6% against the AAOIFI threshold of 30%, Elastic N.V. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from April 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 10.6%
/ 30%
25.0%
/ 30%
6.7%
/ 30%
3.27%
/ 5%
✓ HALAL
DJIM 10.6%
/ 33%
25.0%
/ 33%
6.7%
/ 33%
3.27%
/ 5%
✓ HALAL
MSCI 22.9%
/ 33%
53.9%
/ 33%
14.5%
/ 33%
3.27%
/ 5%
✗ NOT HALAL
S&P 10.6%
/ 33%
25.0%
/ 33%
6.7%
/ 33%
3.27%
/ 5%
✓ HALAL
FTSE 22.9%
/ 33%
53.9%
/ 33%
14.5%
/ 50%
3.27%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-0.79
P/B Ratio
6.4
EV/EBITDA
-264.9
EV: $4.4B
Revenue
$1.5B
Growth: 17.7%
Beta
1.0
Average volatility
Current Ratio
1.8

Profitability

Gross Margin 76.1%
Operating Margin 0.2%
Net Margin -5.0%
Return on Equity (ROE) -10.2%
Return on Assets (ROA) -0.7%

Cash Flow & Balance Sheet

Operating Cash Flow$266M
Free Cash Flow$262M
Total Debt$595M
Debt-to-Equity74.8
Current Ratio1.8
Total Assets$2.6B

Price & Trading

Last Close$51.31
50-Day MA$59.35
200-Day MA$76.66
Avg Volume2.1M
Beta1.0
52-Week Range
$47.48
$96.07

About Elastic N.V. (ESTC)

CEO
Mr. Ashutosh Kulkarni
Employees
3,921
Sector
Technology
Industry
Software - Application
Country
Netherlands
Exchange
NYSE
Market Cap
$5.1B
Currency
USD

Elastic N.V., a search artificial intelligence (AI) company, provides software platforms to run in hybrid, public or private clouds, and multi-cloud environments in the United States and internationally. It primarily offers Elastic's Search AI Platform, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data. The company also provides Elastic search product a distributed, real-time vector database and analytics engine and data store for all types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the platforms; Elasticsearch search platform, a platform with retrieval algorithms and the ability to integrate with large language models; and elastic security, a security solution that provides unified protection to prevent, detect, and respond to threats. In addition, it offers Elastic Observability, a solution that enables unified analysis, including Logs analytics to search and analyze petabytes of structured and unstructured logs; infrastructure monitoring to gain visibility across cloud, on-premises, Kubernetes, serverless, and hosts; Application Performance Monitoring to stream native production-grade; digital experience monitoring; and large language models. The company was incorporated in 2012 and is based in Amsterdam, the Netherlands.

Purification Calculator

As a halal stock with 3.27% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Elastic N.V. (ESTC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Elastic N.V. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Elastic N.V.'s debt ratio?

Elastic N.V.'s debt ratio is 10.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 22.9%.

Does Elastic N.V. require dividend purification?

Yes, Elastic N.V. has an impermissible income ratio of 3.27%, which means 3.27% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Elastic N.V.'s key financial metrics?

Elastic N.V. has a market capitalization of $5.1B, and revenue of $1.5B. The company maintains a gross margin of 76.1% and a net margin of -5.0%. Return on equity stands at -10.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.