MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
USA - NASDAQ:MITK - US6067102003 - Common Stock
8.97 USD
-0.13 (-1.43%)
8.97 USD
0 (0%)
MITK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
MITK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.47%, MITK is in the better half of the industry, outperforming 68.68% 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 71.17% of its industry peers.
MITK has a Return On Invested Capital of 4.29%. This is in the better half of the industry: MITK outperforms 72.24% of its industry peers.
MITK had an Average Return On Invested Capital over the past 3 years of 3.13%. This is significantly below the industry average of 11.92%.
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
With a decent Profit Margin value of 8.71%, MITK is doing good in the industry, outperforming 70.82% of the companies in the same industry.
In the last couple of years the Profit Margin of MITK has declined.
MITK has a better Operating Margin (12.33%) than 77.94% of its industry peers.
In the last couple of years the Operating Margin of MITK has declined.
The Gross Margin of MITK (85.59%) is better than 93.59% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MITK is destroying value.
Compared to 1 year ago, MITK has less shares outstanding
MITK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MITK has a worse debt to assets ratio.
2.2 Solvency
MITK has an Altman-Z score of 1.74. This is a bad value and indicates that MITK is not financially healthy and even has some risk of bankruptcy.
MITK has a Altman-Z score of 1.74. This is comparable to the rest of the industry: MITK outperforms 46.26% of its industry peers.
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.
The Debt to FCF ratio of MITK (2.74) is better than 65.12% 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 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.44
WACC9.7%
2.3 Liquidity
A Current Ratio of 1.14 indicates that MITK should not have too much problems paying its short term obligations.
MITK has a worse Current ratio (1.14) 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.
With a Quick ratio value of 1.14, MITK is not doing good in the industry: 65.48% 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
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.
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
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.
MITK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
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.
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
A Price/Earnings ratio of 8.46 indicates a reasonable valuation of MITK.
Compared to the rest of the industry, the Price/Earnings ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 90.75% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MITK to the average of the S&P500 Index (25.89), we can say MITK is valued rather cheaply.
A Price/Forward Earnings ratio of 8.19 indicates a reasonable valuation of MITK.
Based on the Price/Forward Earnings ratio, MITK is valued cheaper than 91.10% of the companies in the same industry.
MITK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 94.31% of the companies listed in the same industry.
MITK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MITK is cheaper than 96.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
MITK has a very decent profitability rating, which 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 |
8.97
-0.13 (-1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.41%
Inst Owner Change2.71%
Ins Owners2.13%
Ins Owner Change1.03%
Market Cap409.48M
Revenue(TTM)178.13M
Net Income(TTM)15.51M
Analysts81.67
Price Target13.26 (47.83%)
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)6.93%
EPS NQ rev (3m)4.85%
EPS NY rev (1m)0%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-3.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 8.19 | ||
| P/S | 2.3 | ||
| P/FCF | 7.34 | ||
| P/OCF | 7.19 | ||
| P/B | 1.72 | ||
| P/tB | 6.93 | ||
| EV/EBITDA | 5.55 |
EPS(TTM)1.06
EY11.82%
EPS(NY)1.09
Fwd EY12.21%
FCF(TTM)1.22
FCFY13.63%
OCF(TTM)1.25
OCFY13.92%
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 | 1.74 |
F-Score7
WACC9.7%
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.