Mitek Systems Inc. Common Stock (MITK)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $65 million in annual free cash flow (10.3% yield on market cap)
• Revenue growth of 18.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($6) with negative 118% margin of safety—limited downside protection

AI Analysis

Mitek Systems Inc. Common Stock is a micro-cap technology company valued at $629 million. The business generates $187 million in annual revenue with a 1.5% net margin and $65 million in free cash flow. From a quality standpoint, Mitek shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is trading at a premium 39.9x earnings, with trades far above its Graham Number ($6) with no margin of safety. Growth dynamics show revenue growing at 18.8% and profit growth of 160.1%. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Mitek's 19% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $65 million in annual free cash flow (10.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 40x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer