Mitek Systems, Inc. [NASDAQ: MITK] shares went lower by -14.90% from its previous closing of $9.80, now trading at the price of $8.34, also adding -1.46 points. Is MITK stock a buy or should you stay away?

The stock had a rather active trading session with the latest closing, by far recording 1.45 million contracts. Compared to the average trading volume of MITK shares, the company saw a far better performance. Moreover, the stock has a 38.84M float and a -12.81% run over in the last seven days. MITK share price has been hovering between $13.07 and $8.71 lately, and is definitely worthy of attention.

Mitek Systems, Inc. [NASDAQ:MITK]: Analyst Rating and Earnings

Its stock price has been found in the range of 8.71 to 13.07. This is compared to its latest closing price of $9.80.

Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Coming Soon..   ).

Fundamental Analysis of Mitek Systems, Inc. [MITK]

Now let’s turn to look at profitability: with a current Operating Margin for Mitek Systems, Inc. [MITK] sitting at -2.97 and its Gross Margin at +80.00, this company’s Net Margin is now -7.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is -2.40, and its Return on Invested Capital has reached -6.30%. Its Return on Equity is -15.06, and its Return on Assets is -11.83. These metrics suggest that this Mitek Systems, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Mitek Systems,

Inc. [MITK] has generated a Total Debt to Total Equity ratio of 0.84. Similarly, its Total Debt to Total Capital is 0.83, while its Total Debt to Total Assets stands at 0.63.

What about valuation? This company’s Enterprise Value to EBITDA is 134.14 and its Total Debt to EBITDA Value is 0.29. The Enterprise Value to Sales for this firm is now 4.57, and its Total Debt to Enterprise Value stands at 0.00. Mitek Systems, Inc. [MITK] has a Price to Book Ratio of 2.81, a Price to Cash Flow Ratio of 44.88.

Shifting the focus to workforce efficiency, Mitek Systems, Inc. [MITK] earns $206,360 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.31 and its Total Asset Turnover is 0.64. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.84 and its Current Ratio is 1.84. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Mitek Systems, Inc. [MITK] has 40.34M shares outstanding, amounting to a total market cap of $395.33M. Its stock price has been found in the range of 8.71 to 13.07. At its current price, it has moved down by -36.19% from its 52-week high, and it has moved down -4.25% from its 52-week low.

This stock’s Beta value is currently -0.20, which indicates that it is 3.69% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 21.67. This stock, according to these metrics, is currently Oversold.

Conclusion: Is Mitek Systems, Inc. [MITK] a Reliable Buy?

Mitek Systems, Inc. [MITK] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.