Mitek Systems Inc

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MITK : NASDAQ : Technology
$7.64 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 871,800
07/26/16 - 4:00 PM ET

Financial Analysis


MITEK SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. MITEK SYSTEMS INC is extremely liquid. Currently, the Quick Ratio is 3.99 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 28.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)8.525.67
EBITDA ($mil)1.280.67
EBIT ($mil)1.020.57
Net Income ($mil)0.580.51


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)28.1625.71
Total Assets ($mil)42.333.39
Total Debt ($mil)0.00.0
Equity ($mil)33.6526.29


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin92.8492.05
EBITDA Margin15.0311.86
Operating Margin12.019.98
Sales Turnover0.710.64
Return on Assets5.04-2.92
Return on Equity6.33-3.71
Debt Q2 FY16 Q2 FY15
Current Ratio4.134.71
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)32.2230.73
Div / share0.00.0
EPS0.020.02
Book value / share1.040.86
Institutional Own % n/a n/a
Avg Daily Volume893085.0548966.0

Valuation


BUY. MITEK SYSTEMS INC's P/E ratio indicates a significant premium compared to an average of 59.94 for the Software industry and a significant premium compared to the S&P 500 average of 25.09. Conducting a second comparison, its price-to-book ratio of 7.70 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 7.08. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, MITEK SYSTEMS INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MITK 114.86 Peers 59.94   MITK 29.65 Peers 22.00

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MITK is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MITK is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MITK 25.94 Peers 48.14   MITK 0.61 Peers 0.86

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

MITK is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MITK trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MITK 7.70 Peers 7.08   MITK 333.33 Peers -2.41

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MITK is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MITK is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MITK 8.57 Peers 5.96   MITK 42.16 Peers 5.31

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MITK is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

MITK has a sales growth rate that significantly exceeds its peers.

 

 

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