Mitek Systems Inc

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MITK : NASDAQ : Technology
$8.4 | %
Today's Range: 8.3 - 8.75
Avg. Daily Volume: 459500.0
06/23/17 - 4:00 PM ET

Financial Analysis


MITEK SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. MITEK SYSTEMS INC is extremely liquid. Currently, the Quick Ratio is 5.00 which clearly shows the ability to cover any short-term cash needs. MITK managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 27.24% 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 FY17 Q2 FY16
Net Sales ($mil)11.428.52
EBITDA ($mil)1.791.28
EBIT ($mil)1.61.03
Net Income ($mil)1.220.58


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)36.0128.16
Total Assets ($mil)51.7642.3
Total Debt ($mil)0.00.0
Equity ($mil)42.8133.65


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin93.1392.84
EBITDA Margin15.6515.06
Operating Margin14.012.04
Sales Turnover0.760.71
Return on Assets4.465.04
Return on Equity5.396.33
Debt Q2 FY17 Q2 FY16
Current Ratio5.144.13
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)33.3232.22
Div / share0.00.0
EPS0.030.02
Book value / share1.281.04
Institutional Own % n/a n/a
Avg Daily Volume461366.0270417.0

Valuation


BUY. MITEK SYSTEMS INC's P/E ratio indicates a significant premium compared to an average of 70.17 for the Software industry and a significant premium compared to the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 6.81 indicates a significant premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 9.04. 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 145.83 Peers 70.17   MITK 41.72 Peers 29.09

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 24.31 Peers 44.61   MITK 0.38 Peers 0.80

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 6.81 Peers 9.04   MITK -14.29 Peers 77.19

Discount. 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 discount to 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 7.39 Peers 6.80   MITK 30.53 Peers 8.69

Average. 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 valuation on par with its industry on this measurement.

 

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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