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

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)

The company is Net-Debt Free

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

With a growth in Net Profit of 244.01%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 7.21%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
CASH AND EQV(HY) Highest at USD 267.66 MM

With ROE of 7.08%, it has a very expensive valuation with a 2.54 Price to Book Value

Over the past year, while the stock has generated a return of 102.52%, 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.

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, High Return

Absolute

Risk Adjusted

Volatility

Mitek Systems, Inc.

102.52%

1.09

54.45%

S&P 500

22.36%

1.70

13.18%

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

2.54

EV to EBIT

21.81

EV to EBITDA

13.14

EV to Capital Employed

2.77

EV to Sales

3.02

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

12.69%

ROE (Latest)

7.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

21What is working for the Company

ROCE(HY)

Highest at 7.21%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at USD 267.66 MM

NET SALES(Q)

Highest at USD 54.84 MM

OPERATING PROFIT(Q)

Highest at USD 18 MM

OPERATING PROFIT MARGIN(Q)

Highest at 32.82 %

PRE-TAX PROFIT(Q)

Highest at USD 12.74 MM

NET PROFIT(Q)

Highest at USD 9.54 MM

EPS(Q)

Highest at USD 0.2

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Pre-Tax Profit

At USD 12.74 MM has Grown at 137.36%

over average net sales of the previous four periods of USD 5.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 9.54 MM has Grown at 130.72%

over average net sales of the previous four periods of USD 4.13 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 54.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 54.84 MM has Grown at 17.51%

over average net sales of the previous four periods of USD 46.67 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 18 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 32.82 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 12.74 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 9.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 267.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents