MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock - Currency: USD
Overall MITK gets a fundamental rating of 6 out of 10. We evaluated MITK against 285 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on MITK. These ratings could make MITK a good candidate for value investing.
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.
Each year in the past 5 years MITK has been profitable.
Each year in the past 5 years MITK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.13%, MITK is in the better half of the industry, outperforming 65.61% of the companies in the same industry.
MITK's Return On Equity of 2.22% is fine compared to the rest of the industry. MITK outperforms 66.67% of its industry peers.
MITK's Return On Invested Capital of 2.08% is fine compared to the rest of the industry. MITK outperforms 70.18% 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 11.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2.22% | ||
| ROIC | 2.08% |
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 2.59%, MITK is in the better half of the industry, outperforming 66.32% 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 5.54%, MITK is doing good in the industry, outperforming 72.63% of the companies in the same industry.
In the last couple of years the Operating Margin of MITK has declined.
MITK has a better Gross Margin (85.61%) than 91.93% of its industry peers.
MITK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.54% | ||
| PM (TTM) | 2.59% | ||
| GM | 85.61% |
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
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
MITK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MITK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.90 indicates that MITK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MITK's Altman-Z score of 1.90 is in line compared to the rest of the industry. MITK outperforms 52.28% of its industry peers.
The Debt to FCF ratio of MITK is 3.69, which is a good value as it means it would take MITK, 3.69 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.69, MITK is doing good in the industry, outperforming 61.05% of the companies in the same industry.
MITK has a Debt/Equity ratio of 0.74. This is a neutral value indicating MITK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, MITK is not doing good in the industry: 69.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.22
WACC9.55%
2.3 Liquidity
A Current Ratio of 4.59 indicates that MITK has no problem at all paying its short term obligations.
The Current ratio of MITK (4.59) is better than 82.81% of its industry peers.
A Quick Ratio of 4.59 indicates that MITK has no problem at all paying its short term obligations.
MITK has a Quick ratio of 4.59. This is amongst the best in the industry. MITK outperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.59 | ||
| Quick Ratio | 4.59 |
3. Growth
3.1 Past
MITK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.36%, 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 5.29% 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)24.36%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%7.14%
Revenue 1Y (TTM)5.29%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%0.91%
3.2 Future
MITK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.33% yearly.
Based on estimates for the next years, MITK will show a quite strong growth in Revenue. The Revenue will grow by 8.56% on average per year.
EPS Next Y-5.61%
EPS Next 2Y7.86%
EPS Next 3Y13.33%
EPS Next 5YN/A
Revenue Next Year3.15%
Revenue Next 2Y6.02%
Revenue Next 3Y8.56%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
With a Price/Earnings ratio of 8.36, the valuation of MITK can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 91.93% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.33, MITK is valued rather cheaply.
A Price/Forward Earnings ratio of 7.26 indicates a rather cheap valuation of MITK.
Based on the Price/Forward Earnings ratio, MITK is valued cheaper than 95.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, MITK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MITK is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
95.44% 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 | 9.13 | ||
| EV/EBITDA | 13.49 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
MITK's earnings are expected to grow with 13.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y7.86%
EPS Next 3Y13.33%
5. Dividend
5.1 Amount
No dividends for MITK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:MITK (4/23/2025, 9:30:00 AM)
8.11
+0.19 (+2.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners79.08%
Inst Owner Change-0.16%
Ins Owners1.71%
Ins Owner Change7.79%
Market Cap366.90M
Analysts81.67
Price Target13.36 (64.73%)
Short Float %7.08%
Short Ratio5.85
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)44.94%
Min EPS beat(2)1.42%
Max EPS beat(2)88.46%
EPS beat(4)2
Avg EPS beat(4)17.82%
Min EPS beat(4)-12.85%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)12.24%
EPS beat(12)8
Avg EPS beat(12)15.13%
EPS beat(16)12
Avg EPS beat(16)17.39%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.88%
Max Revenue beat(2)2.59%
Revenue beat(4)2
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-8.11%
Max Revenue beat(4)2.59%
Revenue beat(8)4
Avg Revenue beat(8)1.02%
Revenue beat(12)6
Avg Revenue beat(12)2.69%
Revenue beat(16)9
Avg Revenue beat(16)3.41%
PT rev (1m)0%
PT rev (3m)3.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)0%
EPS NY rev (3m)7.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 7.26 | ||
| P/S | 2.13 | ||
| P/FCF | 9.13 | ||
| P/OCF | 8.8 | ||
| P/B | 1.83 | ||
| P/tB | 12.91 | ||
| EV/EBITDA | 13.49 |
EPS(TTM)0.97
EY11.96%
EPS(NY)1.12
Fwd EY13.77%
FCF(TTM)0.89
FCFY10.95%
OCF(TTM)0.92
OCFY11.37%
SpS3.81
BVpS4.44
TBVpS0.63
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2.22% | ||
| ROCE | 2.67% | ||
| ROIC | 2.08% | ||
| ROICexc | 3.14% | ||
| ROICexgc | 11.65% | ||
| OM | 5.54% | ||
| PM (TTM) | 2.59% | ||
| GM | 85.61% | ||
| FCFM | 23.31% |
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-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 9.16% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 158.71% | ||
| Profit Quality | 901.19% | ||
| Current Ratio | 4.59 | ||
| Quick Ratio | 4.59 | ||
| Altman-Z | 1.9 |
F-Score6
WACC9.55%
ROIC/WACC0.22
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)24.36%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%7.14%
EPS Next Y-5.61%
EPS Next 2Y7.86%
EPS Next 3Y13.33%
EPS Next 5YN/A
Revenue 1Y (TTM)5.29%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%0.91%
Revenue Next Year3.15%
Revenue Next 2Y6.02%
Revenue Next 3Y8.56%
Revenue Next 5YN/A
EBIT growth 1Y118.97%
EBIT growth 3Y-36.3%
EBIT growth 5YN/A
EBIT Next Year16.59%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y41.59%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y42.08%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%