MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MITK. MITK was compared to 284 industry peers in the Software industry. MITK has only an average score on both its financial health and profitability. MITK may be a bit undervalued, certainly considering the very reasonable score on growth 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.
MITK had a positive operating cash flow in the past year.
In the past 5 years MITK has always been profitable.
Each year in the past 5 years MITK had a positive operating cash flow.
1.2 Ratios
MITK has a Return On Assets of 1.13%. This is in the better half of the industry: MITK outperforms 63.04% of its industry peers.
The Return On Equity of MITK (2.22%) is better than 65.58% of its industry peers.
MITK's Return On Invested Capital of 2.08% is fine compared to the rest of the industry. MITK outperforms 68.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MITK is significantly below the industry average of 11.91%.
| 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
MITK has a Profit Margin of 2.59%. This is in the better half of the industry: MITK outperforms 64.13% of its industry peers.
In the last couple of years the Profit Margin of MITK has declined.
MITK has a Operating Margin of 5.54%. This is in the better half of the industry: MITK outperforms 72.83% of its industry peers.
MITK's Operating Margin has declined in the last couple of years.
MITK has a better Gross Margin (85.61%) than 92.39% 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 | 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
Compared to 5 years ago, MITK has more shares outstanding
MITK has a worse debt/assets ratio than last year.
2.2 Solvency
MITK has an Altman-Z score of 2.08. This is not the best score and indicates that MITK is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MITK (2.08) is comparable to the rest of the industry.
MITK has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as MITK would need 3.69 years to pay back of all of its debts.
MITK has a better Debt to FCF ratio (3.69) than 60.14% of its industry peers.
MITK has a Debt/Equity ratio of 0.74. This is a neutral value indicating MITK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, MITK is doing worse than 72.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.17
WACC12.17%
2.3 Liquidity
MITK has a Current Ratio of 4.59. This indicates that MITK is financially healthy and has no problem in meeting its short term obligations.
MITK has a Current ratio of 4.59. This is amongst the best in the industry. MITK outperforms 85.51% of its industry peers.
A Quick Ratio of 4.59 indicates that MITK has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.59, MITK belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
| 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.
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 5.29%.
The Revenue has been growing by 15.26% on average over the past years. This is quite good.
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
Based on estimates for the next years, MITK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.33% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
MITK is valuated reasonably with a Price/Earnings ratio of 9.60.
Compared to the rest of the industry, the Price/Earnings ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 93.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MITK to the average of the S&P500 Index (29.63), we can say MITK is valued rather cheaply.
MITK is valuated reasonably with a Price/Forward Earnings ratio of 8.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 95.65% of the companies listed 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 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MITK is valued cheaply inside the industry as 87.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MITK is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.48 | ||
| EV/EBITDA | 15.75 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
A more expensive valuation may be justified as MITK's earnings are expected to grow with 13.33% in the coming years.
PEG (NY)N/A
PEG (5Y)0.55
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 |
9.31
+0.08 (+0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners81.32%
Inst Owner Change-3.83%
Ins Owners1.79%
Ins Owner Change12.47%
Market Cap421.18M
Analysts81.67
Price Target13.36 (43.5%)
Short Float %7.68%
Short Ratio4.86
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)3.25%
EPS NQ rev (1m)3.33%
EPS NQ rev (3m)-17.33%
EPS NY rev (1m)7.24%
EPS NY rev (3m)7.24%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-7.52%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 8.34 | ||
| P/S | 2.44 | ||
| P/FCF | 10.48 | ||
| P/OCF | 10.1 | ||
| P/B | 2.1 | ||
| P/tB | 14.83 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)0.97
EY10.42%
EPS(NY)1.12
Fwd EY12%
FCF(TTM)0.89
FCFY9.54%
OCF(TTM)0.92
OCFY9.9%
SpS3.81
BVpS4.44
TBVpS0.63
PEG (NY)N/A
PEG (5Y)0.55
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 | 2.08 |
F-Score6
WACC12.17%
ROIC/WACC0.17
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 Year12.51%
EBIT Next 3YN/A
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%