NEW YORK ( TheStreet) -- Mitek Systems (Nasdaq: MITK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Highlights from the ratings report include:
- MITK's very impressive revenue growth greatly exceeded the industry average of 0.4%. Since the same quarter one year prior, revenues leaped by 150.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MITK has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 8.39, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 86.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MITK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MITEK SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MITEK SYSTEMS INC continued to lose money by earning -$0.02 versus -$0.04 in the prior year. This year, the market expects an improvement in earnings ($0.10 versus -$0.02).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 103.2% when compared to the same quarter one year prior, rising from -$0.80 million to $0.03 million.
-- Written by a member of TheStreet RatingsStaff