By examining the fundamental indicators between Mitek Systems and Olympic, we can assess the impact of market volatility on both companies' prices and determine if they can mitigate market risk when combined in one of your portfolios. Pair trading strategies can also be employed, such as matching a long position in Olympic with a short position in Mitek Systems. For more information, please refer to our
pair correlation module.
Now, let's delve into the assets. The asset utilization indicator represents the revenue generated for every dollar of assets a company currently holds. Mitek Systems has an asset utilization ratio of 39.94 percent, indicating that the company generates $0.4 for each dollar of assets. A rising asset utilization ratio suggests that Mitek Systems is becoming more efficient with each dollar of assets it uses for daily operations.
Continued study
Mitek Systems (MITK), a prominent player in the Software-Application industry, has been displaying promising signs in the US stock market. The company's Total Risk Alpha of -0.17 and Sortino Ratio of 0.03 suggest a favorable risk-return trade-off. Moreover, the company's EPS estimate for the current and next year stands at 0.96 and 1.16 respectively, indicating a positive earnings outlook. Mitek Systems also boasts a robust 200-day moving average of 10.09, which further underscores its strong market performance. However, investors should be aware of the company's
-21.1M cash from financing activities, which could potentially impact its financial stability. Overall, the investment potential of MITK appears promising, but a careful evaluation of its
financial health is recommended.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Mitek or Wag is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
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.
Correlation Between Mitek and Wag Group
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Mitek Systems together with similar or unrelated positions with a negative correlation. For example, you can also add Wag Group to your portfolio. If Wag Group is not perfectly correlated to Mitek Systems it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Mitek Systems, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Mitek Systems and Wag Group in your portfolio? Please note if you are using this as a pair-trade strategy between Mitek Systems and Wag Group, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between MITK and PET for more information.
Detailed Perspective On Mitek Systems
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Mitek Systems revenue. Based on the latest financial disclosure, Mitek Systems reported 143.94
M of revenue. This is 96.47% lower than that of the Software sector and significantly higher than that of the
Information Technology industry. The revenue for all United States stocks is 98.47% higher than that of the firm. As for Olympic Steel we see revenue of 2.56
B, which is much higher than that of the Information Technology
| MITK | 143.94 Million | 5.32 |
| Sector | 0.0 | 0.0 |
| ZEUS | 2.56 Billion | 94.68 |
Mitek Systems (MITK), a key player in the Software-Application industry, exhibits promising investment potential with a market capitalization of
$516.81M and a Wall Street target price of $14.5.
The company's financial stability is evident in its current ratio of 2.61X and net assets of $360.41M. Despite a total debt of $134.19M, the company maintains a healthy cash flow, with an end period cash flow of $32.1M and total cash from operating activities amounting to $26.4M. The company's revenue per share stands at $3.228, bolstered by a quarterly revenue growth of 0.125. However, the company's operating margin is relatively low at 0.11%, with a net income of $3.03M, indicating room for improvement in operational efficiency. The EPS estimate for the current year is $0.96, and the diluted EPS is $0.07. Mitek Systems' stock performance is relatively stable with a beta of 0.78, and the downside deviation is 2.22. The company's PEG ratio is 1.2756, and the price to earnings to growth is 1.28X, suggesting that the stock may be fairly valued. With a total of
2.26M shares shorted, investors should monitor the stock closely for potential short squeeze opportunities. Overall, Mitek Systems presents a compelling investment opportunity for those seeking exposure to the Software-Application industry. .
Mitek technical analysis suggests possible bounce-back
The latest Treynor ratio for Mitek Systems, a performance metric for
risk-adjusted returns, is at 0.4. This suggests that the company has been successful in generating substantial returns relative to its systematic risk. The positive ratio could be interpreted as a sign of resilience, indicating that the stock may be primed for a rebound. Investors should factor this into their
technical analysis as it could hint at an upward trend in the near future. Currently, Mitek Systems exhibits a below-average downside deviation. It has an Information Ratio of 0.03 and a Jensen Alpha of 0.12. However, we recommend investors to further scrutinize Mitek Systems' expected returns to ensure all indicators align with the current outlook about its relatively low value at risk. Understanding the various
market volatility trends can often assist investors in timing the market. Proper utilization of volatility indicators allows traders to measure Mitek Systems' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect
Mitek Systems' stock price, causing stress to investors as they watch the value of their shares decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Mitek Systems (MITK) presents a compelling investment opportunity. With an analyst overall consensus of a
Strong Buy, backed by
5 strong buy recommendations out of
3 estimates, the stock's potential is evident. The current market valuation of
$11.35 is below the real value estimated at
$13.64, indicating an undervalued position. Furthermore, the analyst target price estimated value stands at a promising
$16, suggesting a possible upside price of
$13.81. However, investors should also consider the possible downside price of
$8.71. Given these factors, Mitek Systems appears to be a promising investment as we approach the fiscal year end in September. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Mitek Systems. Please refer to our
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