Mitek Systems Inc (MITK) stock analysis

P/E below its 5-year median

Mitek Systems's P/E of 39.9 is below its own 5-year median of 55.8.

P/E above the industry

Mitek Systems's P/E of 39.9 is above the Computer and Office Equipment median of 26.0.

EV/EBITDA below its 5-year median

Mitek Systems's EV/EBITDA of 21.7 is below its 5-year median of 23.1.

P/B below the industry

Mitek Systems's price-to-book of 3.38 is below the Computer and Office Equipment median of 3.71.

Trading above fair value

The share price of $18.74 is above our fair value estimate of $17.12.

Margin of safety under 20%

The price is 9.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 33.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 45.3% over the last twelve months, against a 5-year average of 2.4% a year.

Growing slower than the industry

Revenue grew 11.1% over the last twelve months; the Computer and Office Equipment median is 11.2%.

Guidance lowered

Mitek Systems lowered its Full Year FY26 Fraud & Identity solutions revenue outlook on Aug 6, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.2% over the last twelve months and averaged 3.3% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 18.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Mitek Systems's return on equity of 9.2% is above the Computer and Office Equipment median of 7.5%.

Earnings grew over 5 years

Net income grew 2.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.4% over the last twelve months, against a 5-year average of 4.1%.

Net margin above the industry

Mitek Systems's net margin of 11.4% is above the Computer and Office Equipment median of 3.8%.

Low debt

Debt is 19.7% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 109% of total debt.

Interest not well covered

Operating income covers interest expense 4.9 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.74 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.43; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Mitek Systems has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.