Mitek Systems (MITK) AI Stock Analysis

• Market Cap: $451.91M
• Dividend Yield: N/A
• Average Volume (3M): 411.70K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.15
• Revenue Growth: 6.98%
• EPS Growth: N/A
• Country: US
• Employees: 565
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.22
• Shares Outstanding: 45,647,050
• 10 Day Avg. Volume: 354,837
• 30 Day Avg. Volume: 411,698
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 10.84
• 1Y Price Target: $13.75
• Price Target Upside: 32.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 79 Outperform
• Price Target: $11.50 ▲(11.00% Upside)

Mitek Systems' strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's robust revenue growth and operational efficiencies are significant strengths. However, the relatively high valuation and technical indicators suggest some caution. The absence of corporate events and dividend yield slightly tempers the score.

Positive Factors

SaaS Revenue Growth

The shift to SaaS provides a stable, recurring revenue model, enhancing predictability and reducing volatility in financial performance.

Operational Efficiency

High free cash flow conversion indicates strong cash generation ability, supporting strategic initiatives and financial stability.

Fraud and Identity Solutions Expansion

Growth in Fraud and Identity solutions reflects increasing demand and strengthens Mitek's market position in critical security sectors.

Negative Factors

Deposit Software Revenue Decline

Declining deposit software revenue highlights challenges in maintaining stable income from this segment, potentially impacting overall growth.

Gross Margin Decline

A slight decline in gross margin suggests potential pressure on profitability, requiring careful cost management to sustain margins.

Debt-to-Equity Fluctuations

Inconsistent debt levels can pose risks to financial stability, affecting leverage management and potentially increasing financial costs.

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 generates revenue primarily through software licensing and subscription fees for its mobile capture and identity verification solutions. The company offers its products as a SaaS (Software as a Service) model, allowing clients to pay on a subscription basis, which provides a recurring revenue stream. Key revenue streams include transaction fees charged for each successful document verification or mobile deposit processed through its platform. Additionally, Mitek has formed significant partnerships with financial institutions and technology providers, expanding its customer base and enhancing its market reach, which contributes to its earnings. The company may also generate revenue through consulting services and implementation fees related to its software solutions.

Mitek Systems Financial Statement Overview

Summary

Mitek Systems exhibits strong financial health with impressive revenue growth and profitability improvements. The company maintains a solid balance sheet with manageable leverage and effective equity utilization. Cash flow generation is robust, supporting operational and strategic initiatives. While there are some fluctuations in revenue and leverage, the overall financial trajectory is positive, positioning the company well for future growth.

Income Statement

Mitek Systems has demonstrated strong revenue growth with a 42.5% increase in TTM, indicating robust demand for its products. The company maintains an impressive gross profit margin of nearly 100%, showcasing excellent cost management. Net profit margin has improved significantly to 8.7% in TTM, reflecting enhanced profitability. EBIT and EBITDA margins have also shown improvement, indicating operational efficiency. However, the company experienced a slight revenue decline in the previous annual period, which could be a concern if it recurs.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.64 in TTM, indicating prudent leverage. Return on equity has improved to 7.1%, suggesting effective use of equity to generate profits. The equity ratio remains healthy, indicating a strong capital structure. However, the company has seen fluctuations in its debt-to-equity ratio over the years, which could pose risks if not controlled.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 18.44% in TTM, highlighting the company's ability to generate cash. The operating cash flow to net income ratio is 0.29, indicating a solid conversion of income to cash. The free cash flow to net income ratio is high at 0.98, suggesting efficient cash management. However, the operating cash flow coverage ratio has decreased compared to previous periods, which could impact liquidity if it continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.13M	172.08M	172.55M	144.80M	119.80M	101.31M
Gross Profit	177.81M	171.77M	149.60M	124.80M	105.26M	88.12M
EBITDA	41.72M	26.96M	39.62M	28.08M	24.07M	18.15M
Net Income	15.51M	3.28M	8.03M	3.69M	7.98M	7.81M
Balance Sheet
Total Assets	446.71M	413.75M	405.38M	364.48M	419.28M	169.15M
Cash, Cash Equivalents and Short-Term Investments	167.07M	130.34M	133.61M	90.33M	179.37M	60.02M
Total Debt	152.73M	151.34M	141.59M	135.49M	130.25M	7.85M
Total Liabilities	209.12M	198.95M	200.19M	193.50M	226.02M	36.91M
Stockholders Equity	237.59M	214.80M	205.19M	170.32M	193.26M	132.24M
Cash Flow
Free Cash Flow	55.80M	30.25M	30.55M	25.23M	35.95M	23.32M
Operating Cash Flow	56.98M	31.69M	31.59M	26.35M	37.34M	24.12M
Investing Cash Flow	726.00K	28.75M	-6.78M	1.70M	-170.49M	-24.71M
Financing Cash Flow	-16.11M	-25.88M	1.70M	-21.14M	143.68M	3.40M

Mitek Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.36
• 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 10.36 is above the 20-day moving average (MA) of 10.07, above the 50-day MA of 9.74, and above the 200-day MA of 9.55, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 46.36 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	79 Outperform	$451.91M	30.05	6.94%	―	6.98%	―
MLNK	63 Neutral	1.48B	-67.36	-5.73%	―	5.96%	50.29%
OPFI	62 Neutral	1.02B	-9.09	22.15%	―	6.79%	-593.75%
SMRT	58 Neutral	308.44M	-4.28	-11.62%	―	-28.45%	-224.48%
BMBL	52 Neutral	720.79M	-0.98	-147.04%	―	-5.06%	-2318.18%
FRGE	47 Neutral	218.03M	-3.54	-34.05%	―	14.78%	21.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%