Mitek Systems Inc. Common Stock (MITK)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and sell at a discount to intrinsic value. Mitek provides digital identity verification and fraud prevention, with products for mobile deposit and check fraud. In fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $54.0 million, net income $8.4 million, and diluted EPS $0.17. That is a sharp improvement from fiscal Q3 2025, the quarter ended 2025-06-30, when revenue was $45.7 million, net income $2.4 million, and diluted EPS $0.05. For FY2025, revenue was $179.7 million and net income $8.8 million, or $0.19 per diluted share. Yet the long-term record is uneven: FY2024 revenue was $172.1 million and net income $3.3 million, while FY2023 revenue was $172.6 million and net income $8.0 million. FairStock's computed Lynch category is SLOW GROWER, based on its five-year profit and revenue growth. Financial health is decent: debt-to-equity 0.22, Altman Z-Score 4.39, Piotroski 6/9, and trailing free cash flow $48.6 million, a 6.4% FCF yield. But returns are modest, with ROE 9.23% and ROCE 5.49%. At the 2026-10-13 close of $16.86, FairStock's P/E is 35.87, P/B 3.04, Graham Number $7.66, margin of safety -120.10%, and EV/EBITDA 13.50. The recent profit rebound is encouraging, but the price already anticipates improvement, and I see no clear margin of safety.

In plain English: Mitek Systems makes software that helps banks and other businesses verify identities and stop fraud, including mobile check deposits. The business is profitable and recently improved a lot, with low debt and decent cash generation, but its longer-term growth has been slow. At the recent close, the share price looks high compared with the company's profits and accounting value, even though cash flow is reasonable.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer