MITK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. MITK has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on MITK.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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.
Looking at the Return On Equity, with a value of 3.66%, MITK is in the better half of the industry, outperforming 64.03% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for MITK 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

MITK has a Profit Margin of 4.90%. This is in the better half of the industry: MITK outperforms 63.31% of its industry peers.
MITK's Profit Margin has declined in the last couple of years.
The Operating Margin of MITK (10.87%) is better than 76.26% of its industry peers.
In the last couple of years the Operating Margin of MITK has declined.
MITK's Gross Margin of 85.09% is amongst the best of the industry. MITK outperforms 92.45% 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
MITK has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.89 indicates that MITK is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MITK (1.89) is comparable to the rest of the industry.
MITK has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as MITK would need 2.89 years to pay back of 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.
The Debt to Equity ratio of MITK (0.65) is worse than 69.78% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.65
Debt/FCF	2.89
Altman-Z	1.89

ROIC/WACC0.37

WACC9.83%

2.3 Liquidity

MITK has a Current 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.
With a Current ratio value of 1.19, MITK is not doing good in the industry: 65.83% of the companies in the same industry are doing better.
A Quick Ratio of 1.19 indicates that MITK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.19, MITK is doing worse than 64.75% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.19
Quick Ratio	1.19

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

MITK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.04%.
Measured over the past 5 years, MITK shows a small growth in Earnings Per Share. The EPS has been growing by 7.68% on average per year.
MITK shows a small growth in Revenue. In the last year, the Revenue has grown by 4.42%.
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

MITK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.55% yearly.
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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.87, which indicates a very decent 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 87.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, MITK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.15, the valuation of MITK can be described as reasonable.
Based on the Price/Forward Earnings ratio, MITK is valued cheaper than 87.05% 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 25.98.

		Industry Rank	Sector Rank
PE	10.87
Fwd PE	10.15

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 92.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MITK is valued cheaper than 93.17% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	8.88
EV/EBITDA	7.38

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MITK has a very decent profitability rating, which may justify a higher PE ratio.