Taking everything into account, MITK scores 5 out of 10 in our fundamental rating. MITK was compared to 278 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on MITK.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MITK had positive earnings in the past year.
In the past year MITK had a positive cash flow from operations.
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

MITK's Return On Assets of 1.92% is fine compared to the rest of the industry. MITK outperforms 61.87% of its industry peers.
With a decent Return On Equity value of 3.66%, MITK is doing good in the industry, outperforming 64.03% of the companies in the same industry.
The Return On Invested Capital of MITK (3.68%) is better than 70.14% of its industry peers.
MITK had an Average Return On Invested Capital over the past 3 years of 3.01%. This is significantly below the industry average of 10.76%.
The 3 year average ROIC (3.01%) for MITK is below the current ROIC(3.68%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	1.92%
ROE	3.66%
ROIC	3.68%

ROA(3y)1.56%

ROA(5y)1.49%

ROE(3y)3.03%

ROE(5y)3%

ROIC(3y)3.01%

ROIC(5y)3.2%

1.3 Margins

MITK has a Profit Margin of 4.90%. This is in the better half of the industry: MITK outperforms 63.31% of its industry peers.
In the last couple of years the Profit Margin of MITK has declined.
Looking at the Operating Margin, with a value of 10.87%, MITK is in the better half of the industry, outperforming 76.26% of the companies in the same industry.
MITK's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 85.09%, MITK belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
MITK's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	10.87%
PM (TTM)	4.9%
GM	85.09%

OM growth 3Y-1.17%

OM growth 5Y-2.03%

PM growth 3Y32.91%

PM growth 5Y-8.66%

GM growth 3Y-0.39%

GM growth 5Y-0.44%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MITK is destroying value.
MITK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MITK has been increased compared to 5 years ago.
MITK has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.87 indicates that MITK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MITK has a Altman-Z score of 1.87. This is comparable to the rest of the industry: MITK outperforms 48.20% of its industry peers.
The Debt to FCF ratio of MITK is 2.89, which is a good value as it means it would take MITK, 2.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MITK (2.89) is better than 64.75% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that MITK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, MITK is doing worse than 69.78% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.65
Debt/FCF	2.89
Altman-Z	1.87

ROIC/WACC0.37

WACC9.82%

2.3 Liquidity

MITK has a Current Ratio of 1.19. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
MITK's Current ratio of 1.19 is on the low side compared to the rest of the industry. MITK is outperformed by 65.83% of its industry peers.
MITK has a Quick Ratio of 1.19. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
MITK's Quick ratio of 1.19 is on the low side compared to the rest of the industry. MITK is outperformed by 64.75% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.19
Quick Ratio	1.19

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.04% over the past year.
The Earnings Per Share has been growing slightly by 7.68% on average over the past years.
Looking at the last year, MITK shows a small growth in Revenue. The Revenue has grown by 4.42% in the last year.
MITK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.15% yearly.

EPS 1Y (TTM)1.04%

EPS 3Y2.91%

EPS 5Y7.68%

EPS Q2Q%-27.27%

Revenue 1Y (TTM)4.42%

Revenue growth 3Y7.68%

Revenue growth 5Y12.15%

Sales Q2Q%3.6%

3.2 Future

The Earnings Per Share is expected to grow by 7.55% on average over the next years.
MITK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.20% yearly.

EPS Next Y7.05%

EPS Next 2Y7.55%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year8.66%

Revenue Next 2Y8.2%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.02, the valuation of MITK can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 87.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.87, MITK is valued rather cheaply.
The Price/Forward Earnings ratio is 10.30, which indicates a very decent valuation of MITK.
87.41% of the companies in the same industry are more expensive than MITK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, MITK is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.02
Fwd PE	10.3

4.2 Price Multiples

MITK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MITK is cheaper than 92.45% of the companies in the same industry.
MITK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MITK is cheaper than 93.88% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	9.01
EV/EBITDA	7.25

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MITK has a very decent profitability rating, which may justify a higher PE ratio.