NasdaqCM:MITK

Stock Analysis Report

Executive Summary

Mitek Systems, Inc. develops, markets, and sells mobile image capture and identity verification software solutions in the United States, Europe, Latin America, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Mitek Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MITK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-21.3%

MITK

2.0%

US Software

0.2%

US Market


1 Year Return

-20.4%

MITK

29.0%

US Software

12.2%

US Market

Return vs Industry: MITK underperformed the US Software industry which returned 29% over the past year.

Return vs Market: MITK underperformed the US Market which returned 12.2% over the past year.


Shareholder returns

MITKIndustryMarket
7 Day-21.3%2.0%0.2%
30 Day-21.2%3.7%3.5%
90 Day-19.2%2.5%6.3%
1 Year-20.4%-20.4%30.7%29.0%14.7%12.2%
3 Year41.5%41.5%122.4%114.0%47.8%38.3%
5 Year97.7%97.7%169.6%150.5%62.1%44.1%

Price Volatility Vs. Market

How volatile is Mitek Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mitek Systems undervalued compared to its fair value and its price relative to the market?

2.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MITK ($7.71) is trading above our estimate of fair value ($3.13)

Significantly Below Fair Value: MITK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MITK is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: MITK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MITK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MITK is good value based on its PB Ratio (2.9x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Mitek Systems forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

103.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MITK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: MITK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MITK's is expected to become profitable in the next 3 years.

Revenue vs Market: MITK's revenue (16.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MITK's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MITK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Mitek Systems performed over the past 5 years?

-14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MITK has large one-off items impacting its financial results.

Growing Profit Margin: MITK's current net profit margins (-0.9%) are higher than last year (-18.6%).


Past Earnings Growth Analysis

Earnings Trend: MITK is unprofitable, and losses have increased over the past 5 years at a rate of -14.7% per year.

Accelerating Growth: Unable to compare MITK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MITK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

High ROE: MITK has a negative Return on Equity (-0.67%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mitek Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MITK's short term assets ($54.1M) exceeds its short term liabilities ($20.0M)

Long Term Liabilities: MITK's short term assets (54.1M) exceeds its long term liabilities (8.5M)


Debt to Equity History and Analysis

Debt Level: MITK is debt free.

Reducing Debt: MITK had no debt 5 years ago.


Balance Sheet

Inventory Level: MITK has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MITK's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MITK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MITK is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -23.8% per year.


Next Steps

Dividend

What is Mitek Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MITK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MITK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MITK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MITK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MITK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Mitek Systems's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Max Carnecchia (56yo)

1yrs

Tenure

0

Mr. Scipio Maximus Carnecchia, also known as Max, has been Chief Executive Officer and Director of Mitek Systems Inc., since November 06, 2018. Mr. Carnecchia served as the Chief Executive Officer of Illum ...


Management Age and Tenure

1.0yrs

Average Tenure

54yo

Average Age

Experienced Management: MITK's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Insider Trading

Insider Buying: MITK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$13,50908 Nov 19
Stephen Ritter
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares1,425
Max PriceUS$9.48
SellUS$13,50908 Nov 19
Jason Gray
EntityIndividual
Shares1,425
Max PriceUS$9.48
SellUS$36,66908 Nov 19
Michael Diamond
EntityIndividual
Role
Senior Key Executive
GM & Senior VP of Digital Banking
Shares3,868
Max PriceUS$9.48
SellUS$86,13018 Sep 19
Jason Gray
EntityIndividual
Shares8,753
Max PriceUS$9.84
SellUS$148,89912 Aug 19
Stephen Ritter
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares15,000
Max PriceUS$9.93
SellUS$124,88525 Jun 19
Jeffrey Davison
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares13,077
Max PriceUS$9.55
SellUS$43,06508 May 19
Michael Diamond
EntityIndividual
Role
Senior Key Executive
GM & Senior VP of Digital Banking
Shares3,915
Max PriceUS$11.00
SellUS$82,88230 Apr 19
Jason Gray
EntityIndividual
Shares7,145
Max PriceUS$11.60
SellUS$127,08113 Feb 19
Stephen Ritter
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares11,377
Max PriceUS$11.17
SellUS$328,59608 Jan 19
James DeBello
EntityIndividual
Shares29,550
Max PriceUS$11.12
SellUS$398,07120 Nov 18
James DeBello
EntityIndividual
Shares42,308
Max PriceUS$9.41
SellUS$114,75220 Nov 18
Stephen Ritter
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares12,198
Max PriceUS$9.41
SellUS$113,86620 Nov 18
Michael Diamond
EntityIndividual
Role
Senior Key Executive
GM & Senior VP of Digital Banking
Shares12,102
Max PriceUS$9.41
SellUS$27,50920 Nov 18
Jason Gray
EntityIndividual
Shares2,925
Max PriceUS$9.41
SellUS$5,74320 Nov 18
Jeffrey Davison
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares611
Max PriceUS$9.40
SellUS$100,09720 Nov 18
Kalle Marsal
EntityIndividual
Shares10,639
Max PriceUS$9.41

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.9%.


Management Team

  • Judith Hicks (55yo)

    Vice President of Global People Operations

    • Tenure: 0.3yrs
  • Jeff Davison (54yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: US$626.38k
  • Mike Diamond (54yo)

    GM & Senior VP of Digital Banking

    • Tenure: 0.8yrs
    • Compensation: US$723.23k
  • Max Carnecchia (56yo)

    CEO & Director

    • Tenure: 1yrs
  • Todd Kehrli

    Investor Contacts

    • Tenure: 0yrs
  • Steve Ritter (49yo)

    Chief Technology Officer

    • Tenure: 3.8yrs
    • Compensation: US$1.06m

Board Members

  • Jim Hale (67yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$165.00k
  • Ken Denman (60yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$155.00k
  • Bruce Hansen (59yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$1.02m
  • Bill Aulet (61yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$155.00k
  • John Major (73yo)

    Member of Advisory Board

    • Tenure: 10.8yrs
  • Pete Hart (79yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$155.00k
  • Victor Nichols (62yo)

    Member of Advisory Board

    • Tenure: 5.1yrs
  • Donna Wells (57yo)

    Director

    • Tenure: 0yrs
  • Max Carnecchia (56yo)

    CEO & Director

    • Tenure: 1yrs
  • Jane Thompson (67yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$55.00k

Company Information

Mitek Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mitek Systems, Inc.
  • Ticker: MITK
  • Exchange: NasdaqCM
  • Founded: 1986
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$324.958m
  • Shares outstanding: 40.37m
  • Website: https://www.miteksystems.com

Number of Employees


Location

  • Mitek Systems, Inc.
  • 600 B Street
  • Suite 100
  • San Diego
  • California
  • 92101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MITKNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 1987

Biography

Mitek Systems, Inc. develops, markets, and sells mobile image capture and identity verification software solutions in the United States, Europe, Latin America, and internationally. The company’s solutions  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 23:41
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.