MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
USA - NASDAQ:MITK - US6067102003 - Common Stock
9.13 USD
-0.1 (-1.08%)
9.0263 USD
-0.1 (-1.14%)
MITK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 285 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on MITK.
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.
In the past 5 years MITK has always been profitable.
In the past 5 years MITK always reported a positive cash flow from operatings.
1.2 Ratios
MITK's Return On Assets of 3.47% is fine compared to the rest of the industry. MITK outperforms 68.31% of its industry peers.
The Return On Equity of MITK (6.53%) is better than 70.42% of its industry peers.
MITK's Return On Invested Capital of 4.29% is fine compared to the rest of the industry. MITK outperforms 72.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MITK is significantly below the industry average of 11.85%.
The last Return On Invested Capital (4.29%) for MITK is above the 3 year average (3.13%), which is a sign of increasing profitability.
| 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's Profit Margin of 8.71% is fine compared to the rest of the industry. MITK outperforms 70.77% of its industry peers.
MITK's Profit Margin has declined in the last couple of years.
MITK's Operating Margin of 12.33% is fine compared to the rest of the industry. MITK outperforms 77.82% of its industry peers.
In the last couple of years the Operating Margin of MITK has declined.
MITK's Gross Margin of 85.59% is amongst the best of the industry. MITK outperforms 93.66% 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.
Compared to 1 year ago, MITK has less shares outstanding
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 1.76, we must say that MITK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MITK (1.76) is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 2.74, MITK is doing good in the industry, outperforming 65.49% of the companies in the same industry.
MITK has a Debt/Equity ratio of 0.64. This is a neutral value indicating MITK is somewhat dependend on debt financing.
The Debt to Equity ratio of MITK (0.64) is worse than 69.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 1.76 |
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 66.55% of its industry peers.
A Quick Ratio of 1.14 indicates that MITK should not have too much problems paying its short term obligations.
MITK has a Quick ratio of 1.14. This is in the lower half of the industry: MITK underperforms 65.14% of its industry peers.
| 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.
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
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
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
The Price/Earnings ratio is 8.61, which indicates a very decent valuation of MITK.
Based on the Price/Earnings ratio, MITK is valued cheaply inside the industry as 91.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.83, MITK is valued rather cheaply.
A Price/Forward Earnings ratio of 8.34 indicates a reasonable valuation of MITK.
Based on the Price/Forward Earnings ratio, MITK is valued cheaply inside the industry as 91.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, MITK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MITK is valued cheaper than 95.42% 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 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.47 | ||
| EV/EBITDA | 5.71 |
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 2Y6.79%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
No dividends for MITK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.13
-0.1 (-1.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.41%
Inst Owner Change0.83%
Ins Owners2.13%
Ins Owner Change1.03%
Market Cap416.78M
Revenue(TTM)178.13M
Net Income(TTM)15.51M
Analysts81.67
Price Target13.26 (45.24%)
Short Float %4.56%
Short Ratio5.7
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)0%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.34 | ||
| P/S | 2.34 | ||
| P/FCF | 7.47 | ||
| P/OCF | 7.31 | ||
| P/B | 1.75 | ||
| P/tB | 7.05 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)1.06
EY11.61%
EPS(NY)1.09
Fwd EY11.99%
FCF(TTM)1.22
FCFY13.39%
OCF(TTM)1.25
OCFY13.67%
SpS3.9
BVpS5.2
TBVpS1.29
PEG (NY)N/A
PEG (5Y)0.49
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 | 1.76 |
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.