8.86 USD
+0.05 (+0.57%)
8.86 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MITK. MITK was compared to 280 industry peers in the Software industry. While MITK is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
The Return On Assets of MITK (3.47%) is better than 68.21% of its industry peers.
The Return On Equity of MITK (6.53%) is better than 71.07% of its industry peers.
The Return On Invested Capital of MITK (4.29%) is better than 72.50% 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 12.00%.
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
MITK has a Profit Margin of 8.71%. This is in the better half of the industry: MITK outperforms 70.36% of its industry peers.
MITK's Profit Margin has declined in the last couple of years.
MITK has a better Operating Margin (12.33%) than 77.50% of its industry peers.
MITK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 85.59%, MITK belongs to the top of the industry, outperforming 93.57% of the companies in the same industry.
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
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
MITK has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that MITK is in the distress zone and has some risk of bankruptcy.
MITK has a Altman-Z score (1.70) which is in line with its industry peers.
The Debt to FCF ratio of MITK is 2.74, which is a good value as it means it would take MITK, 2.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.74, MITK is in the better half of the industry, outperforming 65.36% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that MITK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, MITK is not doing good in the industry: 68.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.44
WACC9.74%
2.3 Liquidity
A Current Ratio of 1.14 indicates that MITK should not have too much problems paying its short term obligations.
The Current ratio of MITK (1.14) is worse than 67.86% of its industry peers.
A Quick Ratio of 1.14 indicates that MITK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, MITK is not doing good in the industry: 66.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.90% over the past year.
Measured over the past years, MITK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.42% on average per year.
The Revenue has been growing slightly by 6.98% 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)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
The Earnings Per Share is expected to grow by 5.65% on average over the next years.
The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y-4.55%
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
A Price/Earnings ratio of 8.36 indicates a reasonable valuation of MITK.
90.71% of the companies in the same industry are more expensive than MITK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. MITK is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.09, the valuation of MITK can be described as reasonable.
Based on the Price/Forward Earnings ratio, MITK is valued cheaper than 91.07% of the companies in the same industry.
MITK is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
MITK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MITK is cheaper than 94.64% of the companies in the same industry.
96.07% 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 | 7.25 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
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 |
8.86
+0.05 (+0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.41%
Inst Owner Change0.51%
Ins Owners2.13%
Ins Owner Change6.88%
Market Cap404.46M
Revenue(TTM)178.13M
Net Income(TTM)15.51M
Analysts81.67
Price Target13.26 (49.66%)
Short Float %4.77%
Short Ratio6.55
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)6.93%
EPS NQ rev (3m)0.94%
EPS NY rev (1m)0%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 8.09 | ||
| P/S | 2.27 | ||
| P/FCF | 7.25 | ||
| P/OCF | 7.1 | ||
| P/B | 1.7 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)1.06
EY11.96%
EPS(NY)1.09
Fwd EY12.36%
FCF(TTM)1.22
FCFY13.8%
OCF(TTM)1.25
OCFY14.09%
SpS3.9
BVpS5.2
TBVpS1.29
PEG (NY)N/A
PEG (5Y)0.48
Graham Number11.14
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%
ROICexgc growth 3Y-20.78%
ROICexgc 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 | 1.7 |
F-Score7
WACC9.74%
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-4.55%
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 Year23.92%
EBIT Next 3Y15.23%
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%
MITEK SYSTEMS INC / MITK FAQ
What is the ChartMill fundamental rating of MITEK SYSTEMS INC (MITK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MITK.
Can you provide the valuation status for MITEK SYSTEMS INC?
ChartMill assigns a valuation rating of 7 / 10 to MITEK SYSTEMS INC (MITK). This can be considered as Undervalued.
How profitable is MITEK SYSTEMS INC (MITK) stock?
MITEK SYSTEMS INC (MITK) has a profitability rating of 6 / 10.
Can you provide the financial health for MITK stock?
The financial health rating of MITEK SYSTEMS INC (MITK) is 3 / 10.
Can you provide the expected EPS growth for MITK stock?
The Earnings per Share (EPS) of MITEK SYSTEMS INC (MITK) is expected to decline by -4.55% in the next year.