Mitek Systems (MITK) AI Stock Analysis

• Market Cap: $460.20M
• Dividend Yield: N/A
• Average Volume (3M): 453.96K
• Price to Earnings (P/E): 35.4
• Beta (1Y): 0.93
• Revenue Growth: 7.76%
• EPS Growth: N/A
• Country: US
• Employees: 565
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 0.36
• Shares Outstanding: 45,564,205
• 10 Day Avg. Volume: 495,348
• 30 Day Avg. Volume: 453,962
• PEG Ratio: 5.55
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.79
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: 3.53
• 1Y Price Target: $13.33
• Price Target Upside: 37.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: $12.00 ▲(23.46%Upside)

Mitek Systems scores well due to strong financial performance and positive earnings call sentiment, indicating a solid growth trajectory. Technical indicators show bullish trends but suggest caution due to overbought conditions. The high P/E ratio indicates potential valuation concerns, while recent corporate events positively influence the outlook.

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. is a leader in digital identity verification and mobile capture solutions. The company operates primarily within the technology sector, offering advanced software solutions that enable businesses to verify identities and authenticate transactions using mobile and web devices. Mitek's technology is widely used in the financial services sector, helping institutions reduce fraud, streamline processes, and enhance customer experiences.

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 financial health with robust revenue growth, high profit margins, and effective cash flow management. The balance sheet is stable, although growing debt levels warrant attention. Overall, Mitek is well-positioned in its industry with a solid financial foundation.

Income Statement

Mitek Systems has demonstrated strong revenue growth with a notable increase from $101.31M in 2020 to $177.38M in the TTM period. The gross profit margin is robust at 96.2% for TTM, indicating effective cost management. Net profit margin improved to 7.5% from prior periods, showing enhanced profitability. EBIT and EBITDA margins are strong at 9.4% and 18.6% respectively, reflecting efficient operational management. Consistent revenue growth and improving margins contribute positively to the income statement score.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.68 in the TTM period, showing manageable leverage. The return on equity has improved to 6.1%, reflecting enhanced shareholder returns. The equity ratio stands at 51.8%, indicating a strong equity position relative to total assets. However, a significant increase in total debt over the years requires cautious monitoring.

Cash Flow

Operating cash flow has shown a positive trend, increasing to $48.39M in the TTM period. Free cash flow grew by 55.7% compared to the prior period, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is robust, indicating efficient cash conversion from operations. However, the financing cash flow is negative, suggesting outflows primarily due to debt repayments.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
177.38M	172.08M	172.55M	143.94M	119.80M	101.31M
	Gross Profit
170.63M	171.77M	149.60M	123.94M	105.26M	88.12M
	EBIT
16.74M	2.23M	15.56M	27.57M	13.71M	8.87M
	EBITDA
32.97M	26.96M	39.62M	28.08M	24.07M	18.15M
	Net Income Common Stockholders
13.33M	3.28M	8.03M	3.69M	7.98M	7.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
136.17M	130.34M	133.61M	90.33M	179.37M	60.02M
	Total Assets
425.34M	413.75M	405.38M	360.41M	419.28M	169.15M
	Total Debt
150.70M	148.64M	140.28M	134.19M	129.45M	7.15M
	Net Debt
46.00M	55.18M	81.37M	102.13M	99.14M	-12.84M
	Total Liabilities
205.13M	198.95M	200.19M	190.09M	226.02M	36.91M
	Stockholders Equity
220.21M	214.80M	205.19M	170.32M	193.26M	132.24M
Cash Flow		Free Cash Flow
47.11M	30.25M	30.55M	25.23M	35.95M	23.32M
	Operating Cash Flow
48.40M	31.69M	31.59M	26.35M	37.34M	24.12M
	Investing Cash Flow
1.82M	28.75M	-6.78M	-3.53M	-170.49M	-24.71M
	Financing Cash Flow
-25.96M	-25.88M	1.70M	-21.14M	143.68M	3.40M

Mitek Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.72
• 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 9.72 is above the 20-day moving average (MA) of 9.72, above the 50-day MA of 8.85, and above the 200-day MA of 9.24, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.13 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	$460.20M	35.40	6.11%	―	7.76%	―
OPFI	77 Outperform	$1.09B	50.49	-47.39%	―	3.82%	-251.96%
MLNK	63 Neutral	$1.31B	―	-6.49%	―	5.15%	28.27%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
BMBL	56 Neutral	$508.19M	―	-46.57%	―	-2.39%	-2961.26%
FRGE	53 Neutral	$195.77M	―	-27.44%	―	16.03%	30.99%
SMRT	51 Neutral	$172.45M	―	-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.