Mitek Systems Inc

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MITK : NASDAQ : Technology
$8.49 up 0.24 | 2.90%
Today's Range: 8.24 - 8.77
Avg. Daily Volume: 477,400
09/28/16 - 10:52 AM ET

Financial Analysis


MITEK SYSTEMS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. MITEK SYSTEMS INC is extremely liquid. Currently, the Quick Ratio is 3.69 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 31.29% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)9.116.44
EBITDA ($mil)1.361.18
EBIT ($mil)1.11.05
Net Income ($mil)0.740.92


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)24.9223.95
Total Assets ($mil)45.9436.94
Total Debt ($mil)0.00.0
Equity ($mil)36.9828.16


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin92.5192.84
EBITDA Margin14.9118.27
Operating Margin12.0416.24
Sales Turnover0.720.62
Return on Assets4.254.25
Return on Equity5.285.58
Debt Q3 FY16 Q3 FY15
Current Ratio3.873.68
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)32.7330.86
Div / share0.00.0
EPS0.020.03
Book value / share1.130.91
Institutional Own % n/a n/a
Avg Daily Volume497851.0821769.0

Valuation


HOLD. MITEK SYSTEMS INC's P/E ratio indicates a significant premium compared to an average of 60.61 for the Software industry and a significant premium compared to the S&P 500 average of 24.83. For additional comparison, its price-to-book ratio of 7.10 indicates a significant premium versus the S&P 500 average of 2.78 and a discount versus the industry average of 7.50. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, MITEK SYSTEMS INC seems to be trading 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 133.67 Peers 60.61   MITK 36.73 Peers 23.87

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 27.66 Peers 32.31   MITK 0.63 Peers 0.85

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

MITK is trading at a valuation on par with 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 7.10 Peers 7.50   MITK 20.00 Peers 34.49

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.

 

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

However, MITK is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MITK 7.98 Peers 5.75   MITK 42.74 Peers 4.67

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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