MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
USA - NASDAQ:MITK - US6067102003 - Common Stock
9.9 USD
+0.14 (+1.43%)
9.99 USD
+0.09 (+0.91%)
MITK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MITK was profitable.
MITK had a positive operating cash flow in the past year.
In the past 5 years MITK has always been profitable.
MITK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.47%, MITK is doing good in the industry, outperforming 69.64% of the companies in the same industry.
MITK has a Return On Equity of 6.53%. This is in the better half of the industry: MITK outperforms 71.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.29%, MITK is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
MITK had an Average Return On Invested Capital over the past 3 years of 3.13%. This is significantly below the industry average of 11.85%.
The 3 year average ROIC (3.13%) for MITK is below the current ROIC(4.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 6.53% | ||
| ROIC | 4.29% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.13%
ROIC(5y)3.83%
1.3 Margins
The Profit Margin of MITK (8.71%) is better than 71.79% of its industry peers.
In the last couple of years the Profit Margin of MITK has declined.
The Operating Margin of MITK (12.33%) is better than 77.86% of its industry peers.
MITK's Operating Margin has declined in the last couple of years.
MITK has a better Gross Margin (85.59%) than 93.21% 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 | 12.33% | ||
| PM (TTM) | 8.71% | ||
| GM | 85.59% |
OM growth 3Y-43.97%
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
MITK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MITK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MITK has been increased compared to 5 years ago.
The debt/assets ratio for MITK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.85 indicates that MITK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.85, MITK perfoms like the industry average, outperforming 43.21% of the companies in the same industry.
MITK has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as MITK would need 2.74 years to pay back of all of its debts.
MITK has a better Debt to FCF ratio (2.74) than 64.64% of its industry peers.
MITK has a Debt/Equity ratio of 0.64. This is a neutral value indicating MITK is somewhat dependend on debt financing.
MITK has a worse Debt to Equity ratio (0.64) than 69.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.44
WACC9.83%
2.3 Liquidity
MITK has a Current Ratio of 1.14. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
MITK has a Current ratio of 1.14. This is in the lower half of the industry: MITK underperforms 66.43% of its industry peers.
MITK has a Quick Ratio of 1.14. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
MITK has a worse Quick ratio (1.14) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
MITK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.90%, which is quite impressive.
MITK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.42% yearly.
MITK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.98%.
Measured over the past years, MITK shows a quite strong growth in Revenue. The Revenue has been growing by 15.26% on average per year.
EPS 1Y (TTM)35.9%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%-12%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%1.67%
3.2 Future
Based on estimates for the next years, MITK will show a small growth in Earnings Per Share. The EPS will grow by 5.65% on average per year.
Based on estimates for the next years, MITK will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y-4.02%
EPS Next 2Y6.79%
EPS Next 3Y5.65%
EPS Next 5YN/A
Revenue Next Year3.23%
Revenue Next 2Y5.36%
Revenue Next 3Y5.84%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.34, the valuation of MITK can be described as reasonable.
90.71% of the companies in the same industry are more expensive than MITK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MITK to the average of the S&P500 Index (27.20), we can say MITK is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.04, the valuation of MITK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MITK is valued cheaper than 93.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, MITK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
95.00% of the companies in the same industry are more expensive than MITK, based on the Enterprise Value to EBITDA ratio.
96.79% 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 | 8.1 | ||
| EV/EBITDA | 6.51 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y6.79%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
MITK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.9
+0.14 (+1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.26%
Inst Owner Change0.88%
Ins Owners2.14%
Ins Owner Change1.06%
Market Cap451.94M
Analysts81.67
Price Target13.26 (33.94%)
Short Float %4.22%
Short Ratio4.88
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)2
Avg EPS beat(2)25.57%
Min EPS beat(2)14.53%
Max EPS beat(2)36.62%
EPS beat(4)4
Avg EPS beat(4)35.26%
Min EPS beat(4)1.42%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)13.54%
EPS beat(12)8
Avg EPS beat(12)16.86%
EPS beat(16)12
Avg EPS beat(16)17.43%
Revenue beat(2)2
Avg Revenue beat(2)4.55%
Min Revenue beat(2)1.85%
Max Revenue beat(2)7.26%
Revenue beat(4)4
Avg Revenue beat(4)3.14%
Min Revenue beat(4)0.88%
Max Revenue beat(4)7.26%
Revenue beat(8)4
Avg Revenue beat(8)-0.56%
Revenue beat(12)7
Avg Revenue beat(12)3%
Revenue beat(16)9
Avg Revenue beat(16)3.17%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-5.61%
EPS NQ rev (3m)-29.37%
EPS NY rev (1m)4.23%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.29%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 9.04 | ||
| P/S | 2.54 | ||
| P/FCF | 8.1 | ||
| P/OCF | 7.93 | ||
| P/B | 1.9 | ||
| P/tB | 7.65 | ||
| EV/EBITDA | 6.51 |
EPS(TTM)1.06
EY10.71%
EPS(NY)1.09
Fwd EY11.06%
FCF(TTM)1.22
FCFY12.35%
OCF(TTM)1.25
OCFY12.61%
SpS3.9
BVpS5.2
TBVpS1.29
PEG (NY)N/A
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 6.53% | ||
| ROCE | 8.86% | ||
| ROIC | 4.29% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 32.57% | ||
| OM | 12.33% | ||
| PM (TTM) | 8.71% | ||
| GM | 85.59% | ||
| FCFM | 31.33% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.13%
ROIC(5y)3.83%
ROICexc(3y)4.74%
ROICexc(5y)6.29%
ROICexgc(3y)31.43%
ROICexgc(5y)27.46%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexcg growth 3Y-20.78%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.5%
ROICexc growth 5YN/A
OM growth 3Y-43.97%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | 7.33% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 18.76 | ||
| Cash Conversion | 149.79% | ||
| Profit Quality | 359.8% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.85 |
F-Score7
WACC9.83%
ROIC/WACC0.44
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)35.9%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%-12%
EPS Next Y-4.02%
EPS Next 2Y6.79%
EPS Next 3Y5.65%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%1.67%
Revenue Next Year3.23%
Revenue Next 2Y5.36%
Revenue Next 3Y5.84%
Revenue Next 5YN/A
EBIT growth 1Y523.73%
EBIT growth 3Y-36.78%
EBIT growth 5YN/A
EBIT Next Year20.88%
EBIT Next 3Y18.43%
EBIT Next 5YN/A
FCF growth 1Y48.45%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y48.2%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%