Mitek Systems (NasdaqCM:MITK) - Stock price, News & Analysis

MITK fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	5/6
Dividends	0/6

MITK Stock Overview

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

Rewards

Trading at 40.7% below our estimate of its fair value

Earnings are forecast to grow 49.95% per year

Earnings have grown 17.7% per year over the past 5 years

Risk Analysis

Large one-off items impacting financial results

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Mitek Systems Competitors

Nuance Communications

NasdaqGS:NUAN

US$17.4b

Coupa Software

NasdaqGS:COUP

US$14.9b

Open Text

NasdaqGS:OTEX

US$13.1b

Bottomline Technologies

NasdaqGS:EPAY

US$2.1b

Price History & Performance

Summary of all time highs, changes and price drops for Mitek Systems
Historical stock prices
Current Share Price	US$16.95
52 Week High	US$23.29
52 Week Low	US$11.27
Beta	0.31
1 Month Change	-12.76%
3 Month Change	-23.99%
1 Year Change	43.16%
3 Year Change	77.12%
5 Year Change	202.68%
Change since IPO	3,290.00%

Recent News & Updates

Oct 21

Mitek Systems (NASDAQ:MITK) Has A Rock Solid Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 03

I Ran A Stock Scan For Earnings Growth And Mitek Systems (NASDAQ:MITK) Passed With Ease

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Aug 20

Mitek Systems' (NASDAQ:MITK) Returns On Capital Not Reflecting Well On The Business

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...

Shareholder Returns

	MITK	US Software	US Market
7D	-5.9%	-4.9%	-2.7%
1Y	43.2%	33.7%	21.3%

Return vs Industry: MITK exceeded the US Software industry which returned 33.7% over the past year.

Return vs Market: MITK exceeded the US Market which returned 21.3% over the past year.

Price Volatility

Is MITK's price volatile compared to industry and market?
MITK volatility
MITK Average Weekly Movement	4.9%
Software Industry Average Movement	7.4%
Market Average Movement	5.9%
10% most volatile stocks in US Market	15.1%
10% least volatile stocks in US Market	2.2%

Stable Share Price: MITK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MITK's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	355	Max Carnecchia	https://www.miteksystems.com

Mitek Systems, Inc. develops, markets, and sells mobile image capture and digital identity verification solutions in the United States, Europe, Latin America, and internationally. The company’s solutions are embedded in native mobile apps and browsers to facilitate online user experiences, fraud detection and reduction, and compliant transactions. It offers Mobile Deposit that enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; and Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile websites, and desktop applications.

Mitek Systems Fundamentals Summary

How do Mitek Systems's earnings and revenue compare to its market cap?
MITK fundamental statistics
Market Cap	US$746.21m
Earnings (TTM)	US$8.41m
Revenue (TTM)	US$119.80m

88.7x

P/E Ratio

6.2x

P/S Ratio

Is MITK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MITK income statement (TTM)
Revenue	US$119.80m
Cost of Revenue	US$14.54m
Gross Profit	US$105.26m
Expenses	US$96.85m
Earnings	US$8.41m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.19
Gross Margin	87.86%
Net Profit Margin	7.02%
Debt/Equity Ratio	62.6%

How did MITK perform over the long term?

See historical performance and comparison

Valuation

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

40.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MITK ($16.95) is trading below our estimate of fair value ($28.58)

Significantly Below Fair Value: MITK is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: MITK is poor value based on its PE Ratio (88.7x) compared to the US Software industry average (43.6x).

PE vs Market: MITK is poor value based on its PE Ratio (88.7x) compared to the US market (17.2x).

Price to Earnings Growth Ratio

PEG Ratio: MITK is poor value based on its PEG Ratio (1.8x)

Price to Book Ratio

PB vs Industry: MITK is good value based on its PB Ratio (3.9x) compared to the US Software industry average (6.4x).

Future Growth

How is Mitek Systems forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

49.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MITK's forecast earnings growth (49.9% per year) is above the savings rate (2%).

Earnings vs Market: MITK's earnings (49.9% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MITK's revenue (13.9% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: MITK's revenue (13.9% 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

Past Performance

How has Mitek Systems performed over the past 5 years?

17.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MITK has a large one-off loss of $8.5M impacting its September 30 2021 financial results.

Growing Profit Margin: MITK's current net profit margins (7%) are lower than last year (7.7%).

Past Earnings Growth Analysis

Earnings Trend: MITK's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: MITK's earnings growth over the past year (7.6%) is below its 5-year average (17.7% per year).

Earnings vs Industry: MITK earnings growth over the past year (7.6%) underperformed the Software industry 20.5%.

Return on Equity

High ROE: MITK's Return on Equity (4.4%) is considered low.

Financial Health

How is Mitek Systems's financial position?

Financial Position Analysis

Short Term Liabilities: MITK's short term assets ($204.1M) exceed its short term liabilities ($38.5M).

Long Term Liabilities: MITK's short term assets ($204.1M) exceed its long term liabilities ($187.6M).

Debt to Equity History and Analysis

Debt Level: MITK has more cash than its total debt.

Reducing Debt: Insufficient data to determine if MITK's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MITK's debt is well covered by operating cash flow (26.3%).

Interest Coverage: MITK's interest payments on its debt are well covered by EBIT (4.3x coverage).

Balance Sheet

Dividend

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

Dividend Yield vs Market

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

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

Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure

CEO

Max Carnecchia (58 yo)

3yrs

Tenure

US$1,343,474

Compensation

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 Chief Executive Officer of Illuminat...

CEO Compensation Analysis

Compensation vs Market: Max's total compensation ($USD1.34M) is below average for companies of similar size in the US market ($USD2.26M).

Compensation vs Earnings: Max's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: MITK's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: MITK's board of directors are considered experienced (3.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.

Data	Last Updated (UTC time)
Company Analysis	2021/11/26 23:15
End of Day Share Price	2021/11/26 00:00
Earnings	2021/09/30
Annual Earnings	2021/09/30

Market Cap

7D

1Y

Updated

Data