Mitek Systems, Inc.
Mitek Systems, Inc. Fundamental Analysis
Mitek Systems, Inc. (MITK) shows weak financial fundamentals with a PE ratio of 38.90, profit margin of 8.74%, and ROE of 6.97%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 4.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MITK's fundamental strength across five key dimensions:
Efficiency Score
WeakMITK struggles to generate sufficient returns from assets.
Valuation Score
ModerateMITK shows balanced valuation metrics.
Growth Score
WeakMITK faces weak or negative growth trends.
Financial Health Score
ExcellentMITK maintains a strong and stable balance sheet.
Profitability Score
WeakMITK struggles to sustain strong margins.
Key Financial Metrics
Is MITK Expensive or Cheap?
P/E Ratio
MITK trades at 38.90 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MITK's PEG of 1.61 indicates fair valuation.
Price to Book
The market values Mitek Systems, Inc. at 2.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.96 times EBITDA. This signals the market has high growth expectations.
How Well Does MITK Make Money?
Net Profit Margin
For every $100 in sales, Mitek Systems, Inc. keeps $8.74 as profit after all expenses.
Operating Margin
Core operations generate 14.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.97 in profit for every $100 of shareholder equity.
ROA
Mitek Systems, Inc. generates $4.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mitek Systems, Inc. generates strong operating cash flow of $48.22M, reflecting robust business health.
Free Cash Flow
Mitek Systems, Inc. generates strong free cash flow of $44.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.99 in free cash annually.
FCF Yield
MITK converts 6.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How MITK Stacks Against Its Sector Peers
| Metric | MITK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.90 | 36.74 | Neutral |
| ROE | 6.97% | 968.00% | Weak |
| Net Margin | 8.74% | 5945062585.00% | Weak |
| Debt/Equity | 0.22 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 2.61 | 4.94 | Strong Liquidity |
| ROA | 4.64% | -296476.00% (disorted) | Weak |
MITK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mitek Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.66%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1.96%
Industry Style: Growth, Innovation, High Beta
GrowingFCF CAGR
107.81%
Industry Style: Growth, Innovation, High Beta
High Growth