MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock
MITK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. Both the profitability and the financial health of MITK get a neutral evaluation. Nothing too spectacular is happening here. MITK is valued quite cheap, while showing a decent growth score. This is a good combination! This makes MITK very considerable for value investing!
1. Profitability
1.1 Basic Checks
MITK had positive earnings in the past year.
MITK had a positive operating cash flow in the past year.
MITK had positive earnings in each of the past 5 years.
Each year in the past 5 years MITK had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.79%, MITK is doing good in the industry, outperforming 63.44% of the companies in the same industry.
MITK has a better Return On Equity (1.53%) than 64.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.12%, MITK is in the better half of the industry, outperforming 65.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MITK is significantly below the industry average of 12.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.53% | ||
| ROIC | 1.12% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
1.3 Margins
Looking at the Profit Margin, with a value of 1.90%, MITK is in the better half of the industry, outperforming 65.23% of the companies in the same industry.
In the last couple of years the Profit Margin of MITK has declined.
The Operating Margin of MITK (3.13%) is better than 67.03% of its industry peers.
In the last couple of years the Operating Margin of MITK has declined.
MITK has a better Gross Margin (85.82%) than 92.47% of its industry peers.
In the last couple of years the Gross Margin of MITK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.13% | ||
| PM (TTM) | 1.9% | ||
| GM | 85.82% |
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MITK is destroying value.
MITK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MITK has more shares outstanding
The debt/assets ratio for MITK is higher compared to a year ago.
2.2 Solvency
MITK has an Altman-Z score of 2.13. This is not the best score and indicates that MITK is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MITK (2.13) is comparable to the rest of the industry.
The Debt to FCF ratio of MITK is 4.84, which is a neutral value as it means it would take MITK, 4.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.84, MITK is in line with its industry, outperforming 57.35% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that MITK is somewhat dependend on debt financing.
MITK's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. MITK is outperformed by 70.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.11
WACC9.9%
2.3 Liquidity
A Current Ratio of 4.39 indicates that MITK has no problem at all paying its short term obligations.
MITK's Current ratio of 4.39 is amongst the best of the industry. MITK outperforms 85.30% of its industry peers.
A Quick Ratio of 4.39 indicates that MITK has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.39, MITK belongs to the best of the industry, outperforming 85.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.39 | ||
| Quick Ratio | 4.39 |
3. Growth
3.1 Past
MITK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.05%.
The Earnings Per Share has been growing by 17.42% on average over the past years. This is quite good.
The Revenue has decreased by -0.27% in the past year.
MITK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.26% yearly.
EPS 1Y (TTM)1.05%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%120%
Revenue 1Y (TTM)-0.27%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%14.78%
3.2 Future
MITK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.34% yearly.
The Revenue is expected to grow by 7.26% on average over the next years.
EPS Next Y-11.99%
EPS Next 2Y3.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.53%
Revenue Next 2Y7.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MITK is valuated reasonably with a Price/Earnings ratio of 10.43.
MITK's Price/Earnings ratio is rather cheap when compared to the industry. MITK is cheaper than 92.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of MITK to the average of the S&P500 Index (28.29), we can say MITK is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.85, the valuation of MITK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MITK is valued cheaply inside the industry as 92.47% of the companies are valued more expensively.
MITK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
84.23% of the companies in the same industry are more expensive than MITK, based on the Enterprise Value to EBITDA ratio.
91.76% of the companies in the same industry are more expensive than MITK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.86 | ||
| EV/EBITDA | 19.23 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y3.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MITK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MITEK SYSTEMS INC
NASDAQ:MITK (1/21/2025, 8:14:23 PM)
After market: 10.01 0 (0%)10.01
-0.07 (-0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners81.32%
Inst Owner Change-0.85%
Ins Owners1.79%
Ins Owner Change12.47%
Market Cap449.65M
Analysts81.67
Price Target12.95 (29.37%)
Short Float %8.94%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)41.36%
Min EPS beat(2)-5.73%
Max EPS beat(2)88.46%
EPS beat(4)1
Avg EPS beat(4)11.71%
Min EPS beat(4)-23.03%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)18.79%
EPS beat(12)8
Avg EPS beat(12)17.91%
EPS beat(16)12
Avg EPS beat(16)17.52%
Revenue beat(2)1
Avg Revenue beat(2)-2.76%
Min Revenue beat(2)-8.11%
Max Revenue beat(2)2.58%
Revenue beat(4)1
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-8.11%
Max Revenue beat(4)2.58%
Revenue beat(8)4
Avg Revenue beat(8)3.38%
Revenue beat(12)6
Avg Revenue beat(12)3.53%
Revenue beat(16)9
Avg Revenue beat(16)3.43%
PT rev (1m)3.25%
PT rev (3m)3.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-62.45%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.41%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 11.85 | ||
| P/S | 2.61 | ||
| P/FCF | 14.86 | ||
| P/OCF | 14.19 | ||
| P/B | 2.09 | ||
| P/tB | 15.46 | ||
| EV/EBITDA | 19.23 |
EPS(TTM)0.96
EY9.59%
EPS(NY)0.84
Fwd EY8.44%
FCF(TTM)0.67
FCFY6.73%
OCF(TTM)0.71
OCFY7.05%
SpS3.83
BVpS4.78
TBVpS0.65
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.53% | ||
| ROCE | 1.45% | ||
| ROIC | 1.12% | ||
| ROICexc | 1.73% | ||
| ROICexgc | 7.52% | ||
| OM | 3.13% | ||
| PM (TTM) | 1.9% | ||
| GM | 85.82% | ||
| FCFM | 17.58% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
ROICexc(3y)4.75%
ROICexc(5y)6.3%
ROICexgc(3y)31.47%
ROICexgc(5y)27.48%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexcg growth 3Y-20.18%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.05%
ROICexc growth 5YN/A
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.84 | ||
| Debt/EBITDA | 6.55 | ||
| Cap/Depr | 8.5% | ||
| Cap/Sales | 0.84% | ||
| Interest Coverage | 4.23 | ||
| Cash Conversion | 142.13% | ||
| Profit Quality | 922.82% | ||
| Current Ratio | 4.39 | ||
| Quick Ratio | 4.39 | ||
| Altman-Z | 2.13 |
F-Score5
WACC9.9%
ROIC/WACC0.11
Cap/Depr(3y)7.2%
Cap/Depr(5y)9.44%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.83%
Profit Quality(3y)714.7%
Profit Quality(5y)578.49%
High Growth Momentum
Growth
EPS 1Y (TTM)1.05%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%120%
EPS Next Y-11.99%
EPS Next 2Y3.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.27%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%14.78%
Revenue Next Year3.53%
Revenue Next 2Y7.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-74.63%
EBIT growth 3Y-36.3%
EBIT growth 5YN/A
EBIT Next Year12.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.99%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y0.32%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%