MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock - Currency: USD
Taking everything into account, MITK scores 5 out of 10 in our fundamental rating. MITK was compared to 282 industry peers in the Software industry. MITK has a medium profitability rating, but doesn't score so well on its financial health evaluation. MITK is valued quite cheap, while showing a decent growth score. This is a good combination!
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 has a Return On Assets of 3.13%. This is in the better half of the industry: MITK outperforms 72.69% of its industry peers.
MITK has a Return On Equity of 6.05%. This is in the better half of the industry: MITK outperforms 74.47% of its industry peers.
The Return On Invested Capital of MITK (4.11%) is better than 73.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MITK is significantly below the industry average of 12.28%.
The 3 year average ROIC (3.14%) for MITK is below the current ROIC(4.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROIC | 4.11% |
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 7.51%, MITK is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
In the last couple of years the Profit Margin of MITK has declined.
With a decent Operating Margin value of 11.26%, MITK is doing good in the industry, outperforming 78.01% of the companies in the same industry.
MITK's Operating Margin has declined in the last couple of years.
MITK's Gross Margin of 85.84% is amongst the best of the industry. MITK outperforms 93.97% of its industry peers.
MITK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.26% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MITK is destroying value.
The number of shares outstanding for MITK has been reduced compared to 1 year ago.
Compared to 5 years ago, MITK has more shares outstanding
Compared to 1 year ago, MITK has a worse debt to assets ratio.
2.2 Solvency
MITK has an Altman-Z score of 1.78. This is a bad value and indicates that MITK is not financially healthy and even has some risk of bankruptcy.
MITK's Altman-Z score of 1.78 is in line compared to the rest of the industry. MITK outperforms 45.74% of its industry peers.
MITK has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as MITK would need 3.19 years to pay back of all of its debts.
The Debt to FCF ratio of MITK (3.19) is better than 63.83% of its industry peers.
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 68.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.43
WACC9.48%
2.3 Liquidity
A Current Ratio of 1.04 indicates that MITK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, MITK is doing worse than 73.40% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that MITK should not have too much problems paying its short term obligations.
The Quick ratio of MITK (1.04) is worse than 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
MITK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.32%, which is quite impressive.
The Earnings Per Share has been growing by 17.42% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.76% in the past year.
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)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
3.2 Future
MITK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.38% yearly.
The Revenue is expected to grow by 6.37% on average over the next years.
EPS Next Y-7.92%
EPS Next 2Y3.34%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y5.66%
Revenue Next 3Y6.37%
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
MITK is valuated reasonably with a Price/Earnings ratio of 8.59.
Based on the Price/Earnings ratio, MITK is valued cheaper than 93.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. MITK is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.13 indicates a reasonable valuation of MITK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 93.26% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MITK to the average of the S&P500 Index (35.33), we can say MITK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MITK is valued cheaper than 95.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 95.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.05 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y3.34%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
No dividends for MITK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.36
-0.23 (-2.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.41%
Inst Owner Change0%
Ins Owners2.29%
Ins Owner Change4.07%
Market Cap426.44M
Analysts81.67
Price Target13.26 (41.67%)
Short Float %5.17%
Short Ratio4.9
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)19.02%
Min EPS beat(2)1.42%
Max EPS beat(2)36.62%
EPS beat(4)3
Avg EPS beat(4)30.19%
Min EPS beat(4)-5.73%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)12.66%
EPS beat(12)8
Avg EPS beat(12)16.56%
EPS beat(16)12
Avg EPS beat(16)18.92%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)0.88%
Max Revenue beat(2)7.26%
Revenue beat(4)3
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-8.11%
Max Revenue beat(4)7.26%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)7
Avg Revenue beat(12)3.39%
Revenue beat(16)9
Avg Revenue beat(16)3.47%
PT rev (1m)0%
PT rev (3m)-0.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.65%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 9.13 | ||
| P/S | 2.4 | ||
| P/FCF | 9.05 | ||
| P/OCF | 8.81 | ||
| P/B | 1.94 | ||
| P/tB | 9.07 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)1.09
EY11.65%
EPS(NY)1.03
Fwd EY10.95%
FCF(TTM)1.03
FCFY11.05%
OCF(TTM)1.06
OCFY11.35%
SpS3.89
BVpS4.83
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROCE | 8.69% | ||
| ROIC | 4.11% | ||
| ROICexc | 6.42% | ||
| ROICexgc | 22.72% | ||
| OM | 11.26% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% | ||
| FCFM | 26.56% |
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-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 7.82% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 15.68 | ||
| Cash Conversion | 133.14% | ||
| Profit Quality | 353.47% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.78 |
F-Score8
WACC9.48%
ROIC/WACC0.43
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)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
EPS Next Y-7.92%
EPS Next 2Y3.34%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
Revenue Next Year3.27%
Revenue Next 2Y5.66%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
EBIT growth 1Y700.3%
EBIT growth 3Y-36.3%
EBIT growth 5YN/A
EBIT Next Year19.39%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y72.26%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y71.49%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%