10.595 USD
+0.06 (+0.52%)
MITK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. MITK may be a bit undervalued, certainly considering the very reasonable score on growth
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 has a better Return On Assets (1.92%) than 61.87% of its industry peers.
- MITK has a Return On Equity of 3.66%. This is in the better half of the industry: MITK outperforms 64.03% of its industry peers.
- MITK's Return On Invested Capital of 3.68% is fine compared to the rest of the industry. MITK outperforms 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 last Return On Invested Capital (3.68%) for MITK is above the 3 year average (3.01%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 4.90%, MITK is in the better half of the industry, outperforming 63.31% of the companies in the same industry.
- MITK's Profit Margin has declined in the last couple of years.
- MITK has a Operating Margin of 10.87%. This is in the better half of the industry: MITK outperforms 76.26% of its industry peers.
- In the last couple of years the Operating Margin of MITK has declined.
- 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%
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 more shares outstanding
- MITK has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for MITK has been reduced compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 1.87, MITK is in line with its industry, outperforming 48.20% of the companies in the same industry.
- 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.
- MITK has a Debt to FCF ratio of 2.89. This is in the better half of the industry: MITK outperforms 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
WACC9.83%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that MITK should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.19, MITK is doing worse than 65.83% of the companies in the same industry.
- 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 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.04% over the past year.
- MITK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.68% yearly.
- 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.
- Based on estimates for the next years, MITK will show a quite strong growth in Revenue. The Revenue will grow by 8.20% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- MITK is valuated reasonably with a Price/Earnings ratio of 10.92.
- MITK's Price/Earnings ratio is rather cheap when compared to the industry. MITK is cheaper than 87.41% of the companies in the same industry.
- MITK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 10.20, 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.
- When comparing the Price/Forward Earnings ratio of MITK to the average of the S&P500 Index (25.98), we can say MITK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 10.2 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MITK is valued cheaper than 92.45% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MITK is valued cheaper than 93.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| 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.
- The decent profitability rating of MITK may justify a higher PE ratio.
PEG (NY)1.55
PEG (5Y)1.42
EPS Next 2Y7.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for MITK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
What is the valuation status for MITK stock?
ChartMill assigns a valuation rating of 8 / 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.
What is the earnings growth outlook for MITEK SYSTEMS INC?
The Earnings per Share (EPS) of MITEK SYSTEMS INC (MITK) is expected to grow by 7.05% in the next year.