Mitek Systems, Inc. (MITK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Model N, Inc.

Mitek Systems, Inc.

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Why is Mitek Systems, Inc. ?

Poor Management Efficiency with a low ROCE of 11.87%

The company has been able to generate a Return on Capital Employed (avg) of 11.87% signifying low profitability per unit of total capital (equity and debt)

Company has a low Debt to Equity ratio (avg) at times

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 11.87%

The company declared very positive results in Mar'25 after flat results in Dec'24

OPERATING CASH FLOW(Y) Highest at USD 62.79 MM
ROCE(HY) Highest at 7.45%
RAW MATERIAL COST(Y) Fallen by 1.29% (YoY)

With ROE of 7.08%, it has a fair valuation with a 2.72 Price to Book Value

Over the past year, while the stock has generated a return of 56.44%, its profits have risen by 127.1% ; the PEG ratio of the company is 0.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 56.44% in the last 1 year, much higher than market (S&P 500) returns of 13.68%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mitek Systems, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mitek Systems, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Mitek Systems, Inc.

57.44%

0.43

49.42%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.15%

EBIT Growth (5y)

10.99%

EBIT to Interest (avg)

5.05

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.47

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.87%

ROE (avg)

8.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.72

EV to EBIT

23.46

EV to EBITDA

14.14

EV to Capital Employed

2.98

EV to Sales

3.25

PEG Ratio

0.30

Dividend Yield

ROCE (Latest)

12.69%

ROE (Latest)

7.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 62.79 MM

ROCE(HY)

Highest at 7.45%

RAW MATERIAL COST(Y)

Fallen by 1.29% (YoY

CASH AND EQV(HY)

Highest at USD 383.09 MM

DEBT-EQUITY RATIO (HY)

Lowest at -12 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.08 times

PRE-TAX PROFIT(Q)

At USD 4.91 MM has Grown at 57.86%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Mitek Systems, Inc.

Operating Cash Flow

Highest at USD 62.79 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 4.91 MM has Grown at 57.86%

over average net sales of the previous four periods of USD 3.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Cash and Eqv

Highest at USD 383.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -12 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales