Mitek Systems, trading under the ticker MITK on NASDAQ, is catching the eye of savvy investors as it navigates a market upswing. As a player in the Software - Application industry, Mitek Systems is backed by solid financial metrics that suggest a promising opportunity. The company boasts a robust net invested capital of $358.4 million, which underscores its commitment to growth and innovation in the technology sector. With cash and short-term investments amounting to $130.3 million, Mitek is well-positioned to weather financial fluctuations and invest in future ventures. However, it's worth noting the company has a long-term debt of $143.6 million, which should be considered when evaluating its financial health. Despite these liabilities, the potential for growth, supported by analyst projections with a highest estimated target price of $14.54, makes Mitek Systems a compelling prospect for those looking to capitalize on the current market rally. Mitek Systems is set to release its earnings today. Currently, the company's Operating Cash Flow Per Share remains steady compared to last year. This year, Stock-Based Compensation as a percentage of Revenue is anticipated to increase to 0.13, while Average Payables are expected to decrease to approximately $908,100. Despite some concerns among baby boomers about the software sector, Mitek Systems presents itself as a viable investment option.
Mitek Systems financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Mitek Systems, including all of Mitek Systems's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Mitek Systems assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Mitek Systems debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding Mitek Total Liabilities
Mitek Systems liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Mitek Systems has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Mitek Systems balance sheet include debt obligations and money owed to different Mitek Systems vendors, workers, and loan providers. Below is the chart of Mitek short long-term liabilities accounts currently reported on its balance sheet.
You can use Mitek Systems
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Mitek Systems's Liquidity
Mitek Systems
financial leverage refers to using borrowed capital as a funding source to finance Mitek Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Mitek Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Mitek Systems' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Mitek Systems' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Mitek Systems's total debt and its cash.
Detailed Perspective On Mitek Systems
The entity reported the previous year's revenue of 172.08
M. Net Income was 3.28
M with profit before overhead, payroll, taxes, and interest of 147.62
M.
Liabilities Breakdown
50.9 M
Total Current Liabilities
189.3 M
Non Current Liabilities Total
| Total Current Liabilities | 50.89 Million |
| Liabilities And Stockholders Equity | 499.61 Million |
| Non Current Liabilities Total | 189.34 Million |
| Non Current Liabilities Other | 5.23 Million |
Buy low, sell high is a timeless strategy that resonates with Mitek Systems (NASDAQ: MITK) as it presents a compelling buying opportunity during the current market upswing.
With a beta of 1.11, Mitek's stock exhibits moderate volatility, suggesting it could outperform in a rising market. The company's robust net assets of $413.75 million and a manageable debt-to-equity ratio of 0.75% highlight its financial stability. Despite a net interest income loss of 9.3 million, Mitek's EBITDA of $26.96 million underscores its operational efficiency. As the market rallies, Mitek's solid fundamentals and promising target price of $13.10 make it an attractive option for investors seeking growth in the technology sector..
Mitek Systems has a good chance to finish above $8.53 in 2 months
Mitek Systems' stock shows a standard deviation of 3.01, indicating significant volatility. This can be both a risk and an opportunity for investors, as it suggests potential for substantial price swings. The stock's dynamic nature might lead to it surpassing the $8.53 mark in the near future, especially if positive catalysts emerge. Despite its volatility, the stock has a skewness of 0.87 and kurtosis of 4.02, suggesting a moderate asymmetry and peakedness in price distribution. Understanding these volatility metrics can help investors make informed decisions about timing their trades.
In bear markets, heightened volatility can pressure investors to adjust their portfolios, possibly buying other assets as prices drop. This can be a crucial strategy to manage risk and optimize returns.Despite the broader market's upward momentum, Mitek Systems' stock has taken a dip, leaving investors to ponder its potential. With an analyst consensus rating of "Strong Buy" and a target price estimated at 13.1, there is a clear indication of confidence in the company's future prospects. However, it's important to weigh this optimism against the possible downside price of 5.29, which suggests some caution is warranted. As the fiscal year wraps up in September, investors should keep a close eye on Mitek's performance metrics and market conditions to make informed decisions. Balancing these factors can help in navigating the current volatility and identifying the right entry point for potential gains..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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