Mitek Systems (MITK) AI Stock Analysis

• Market Cap: $431.04M
• Dividend Yield: N/A
• Average Volume (3M): 427.67K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.92
• Revenue Growth: 7.76%
• EPS Growth: N/A
• Country: US
• Employees: 565
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.36
• Shares Outstanding: 45,564,205
• 10 Day Avg. Volume: 407,038
• 30 Day Avg. Volume: 427,673
• PEG Ratio: 0.31
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.97
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 5.71
• 1Y Price Target: $13.33
• Price Target Upside: 35.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: $10.50 ▲(7.03%Upside)

Mitek Systems demonstrates strong financial performance, with robust revenue growth and high profit margins being significant contributors to the score. Technical analysis shows moderate strength, while valuation is somewhat high, indicating potential overvaluation. Positive earnings call sentiment and strategic corporate events further support the overall score.

Positive Factors

Financial Performance

Higher revenue, higher gross margin, and lower operating expense resulted in an EBITDA of $20.2M, well above expectations.

Operational Efficiency

The company has modestly increased its adjusted EBITDA guidance range reflecting improved efficiencies and ongoing cost discipline.

Product Adoption

The evolution of its ID verification platform from a point solution sale to a broader platform opportunity has received good feedback from customers.

Negative Factors

Growth Projections

Revenue growth is likely to result in muted revenue growth in FY25.

Market Valuation

MITK trades at an EV/EBITDA multiple of 7.2x based on FY26E adjusted EBITDA, with a price target based on a peer group average multiple of 11.5x.

Mitek Systems Business Overview & Revenue Model

Company Description

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 web browsers to facilitate digital consumer experiences. 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. The company also provides Mobile Fill, which includes automatic image capture, minimizes the numbers of clicks, and expedites form fill completion; and MiSnap, a mobile-capture software development kit that enables an intuitive user experience and instant capture of quality images of identity documents and checks. In addition, it offers CheckReader that enables financial institutions to automatically extract data from checks; Check Fraud Defender, an AI-powered and cloud-hosted model for fighting check fraud; and Check Intelligence that enables financial institutions to automatically extract data from a check image received across any deposit channel, including branch, ATM, remote deposit capture, and mobile. Further, the company provides ID_CLOUD, an automated identity verification solution that is integrated into a customers' application to read and validate identity documents; IDLive Face, a passive facial liveness detection product; IDVoice, a robust AI-driven voice biometric engine; IDLive Voice that helps stop spoofing attacks on voice biometric systems; and IDLive Doc that works to fight fraud related to digitally displayed document images. Mitek Systems, Inc. was incorporated in 1986 and is based in San Diego, California.

How the Company Makes Money

Mitek Systems generates revenue primarily through the sale of its software solutions and services. The company's key revenue streams include licensing fees for its identity verification and mobile capture technologies, as well as subscription fees for ongoing access to its software as a service (SaaS) offerings. Additionally, Mitek earns revenue from implementation services, support, and maintenance contracts. The company benefits from partnerships with financial institutions, technology providers, and other enterprises that integrate Mitek's solutions into their own offerings, expanding the reach and application of its technologies.

Mitek Systems Financial Statement Overview

Summary

Mitek Systems demonstrates strong revenue growth and robust cash flow generation, supported by a solid balance sheet. However, the company faces challenges in improving profitability and return on equity, which slightly tempers its financial performance score.

Income Statement

Mitek Systems shows consistent revenue growth with a 20.3% increase from 2022 to 2023, driven by strong gross profit margins consistently above 90%. However, the net profit margin remains modest at 2.6% TTM, indicating room for profitability improvement. EBIT and EBITDA margins have decreased slightly, reflecting some operational challenges.

Balance Sheet

The company maintains a solid balance sheet with an equity ratio of 50.7% TTM, indicating financial stability. The debt-to-equity ratio stands at 0.74, reflecting manageable leverage levels. Return on equity is relatively low at 2.2% TTM, suggesting a need for better utilization of equity capital.

Cash Flow

Mitek Systems demonstrates robust cash flow generation, with a significant increase in free cash flow by 32.2% TTM. The operating cash flow to net income ratio of 9.36 suggests strong cash conversion efficiency. The company's ability to generate cash is a key strength, supporting future growth and debt reduction.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
172.42M	172.08M	172.55M	143.94M	119.80M	101.31M
	Gross Profit
159.07M	171.77M	149.60M	123.94M	105.26M	88.12M
	EBIT
10.65M	2.23M	15.56M	27.57M	13.71M	8.87M
	EBITDA
28.14M	26.96M	39.62M	28.08M	24.07M	18.15M
	Net Income Common Stockholders
4.46M	3.28M	8.03M	3.69M	7.98M	7.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
123.93M	130.34M	133.61M	90.33M	179.37M	60.02M
	Total Assets
417.03M	413.75M	405.38M	360.41M	419.28M	169.15M
	Total Debt
145.45M	148.64M	140.28M	134.19M	129.45M	7.15M
	Net Debt
64.51M	55.18M	81.37M	102.13M	99.14M	-12.84M
	Total Liabilities
200.88M	198.95M	200.19M	190.09M	226.02M	36.91M
	Stockholders Equity
216.15M	214.80M	205.19M	170.32M	193.26M	132.24M
Cash Flow		Free Cash Flow
40.18M	30.25M	30.55M	25.23M	35.95M	23.32M
	Operating Cash Flow
41.72M	31.69M	31.59M	26.35M	37.34M	24.12M
	Investing Cash Flow
11.70M	28.75M	-6.78M	-3.53M	-170.49M	-24.71M
	Financing Cash Flow
-25.90M	-25.88M	1.70M	-21.14M	143.68M	3.40M

Mitek Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MITK, the sentiment is Positive. The current price of 9.81 is above the 20-day moving average (MA) of 9.55, above the 50-day MA of 8.66, and above the 200-day MA of 9.21, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 64.65 is Neutral, neither overbought nor oversold. The STOCH value of 76.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MITK.

Mitek Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MITK	78 Outperform	$431.04M	34.55	6.11%	―	7.76%	―
OPFI	77 Outperform	$1.14B	50.49	-47.39%	―	3.82%	-251.96%
MLNK	63 Neutral	$1.28B	―	-6.49%	―	5.15%	28.27%
Sector *	62 Neutral	$11.75B	10.58	-7.10%	2.91%	7.47%	-7.95%
BMBL	56 Neutral	$554.68M	―	-46.57%	―	-2.39%	-2961.26%
FRGE	52 Neutral	$172.84M	―	-27.44%	―	16.03%	30.99%
SMRT	51 Neutral	$169.32M	―	-22.66%	―	-25.43%	-135.09%

Mitek Systems Corporate Events

Mitek Systems Updates Investor Presentation June 2025

On June 3, 2025, Mitek Systems, Inc. updated its investor presentation, which is now available on their website. The company clarified that the furnishing of these materials is not required by Regulation FD or other securities laws, and they do not assume any obligation to update the information in the future.

The most recent analyst rating on (MITK) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Mitek Systems stock, see the MITK Stock Forecast page.

Mitek Systems Secures $75M Loan with SVB

On May 7, 2025, Mitek Systems announced an amendment to its existing credit facility with Silicon Valley Bank, establishing a $75 million term loan and a revised $25 million revolving line of credit. This financial maneuver aims to retire the company’s outstanding Convertible Notes by February 2026, securing financial flexibility and supporting Mitek’s strong balance sheet. Additionally, Mitek reported record financial results for the second quarter of fiscal 2025, with an 11% year-over-year revenue increase to $51.9 million and a significant rise in GAAP net income. The company also raised its adjusted EBITDA margin guidance for fiscal 2025, reflecting its robust performance and strategic focus on long-term growth.

Mitek Systems Appoints Garrett Gafke as COO

On April 25, 2025, Mitek Systems appointed Garrett Gafke as Chief Operating Officer to drive growth and innovation. Gafke, a seasoned executive in identity, fraud, and payments markets, is expected to enhance Mitek’s operations and solidify its position as a leader in digital identity verification and fraud prevention. His compensation package is heavily performance-based, aligning his incentives with shareholder value creation.