Mitek Systems currently holds roughly 71.05
M in cash with 37.34
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.6.
Mitek Systems has a
performance score of 1 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.7714, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Mitek's beta means in this case. As returns on the market increase, Mitek Systems returns are expected to increase less than the market. However, during the bear market, the loss on holding Mitek Systems will be expected to be smaller as well. Although it is important to respect
Mitek Systems price patterns, it is better to be realistic regarding the information on the equity's historical
price patterns. The philosophy towards estimating
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Mitek Systems technical indicators, you can presently evaluate if the expected return of 0.0321% will be sustainable into the future.
Mitek Systems right now secures a risk of 2.23%. Please verify Mitek Systems
potential upside, as well as the
relationship between the kurtosis and
day typical price to decide if Mitek Systems will be following its current price movements.
Investing in Mitek Systems, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Mitek Systems along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Mitek Systems' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Mitek Systems. Your research has to be compared to or analyzed against Mitek Systems' peers to derive any actionable benefits. When done correctly, Mitek Systems' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Mitek Systems.
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.
Mitek Systems Gross Profit
Mitek Systems Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Mitek Systems previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Mitek Systems Gross Profit growth over the last 10 years. Please check Mitek Systems'
gross profit and other
fundamental indicators for more details.
Mitek Systems Correlation with Peers
Investors in Mitek can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Mitek Systems. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Mitek Systems and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Mitek is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Mitek for more details
Detailed Perspective On Mitek Systems
We consider Mitek Systems not too volatile.
Mitek Systems has Sharpe Ratio of 0.0144, which conveys that the firm had 0.0144% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Mitek Systems, which you can use to evaluate the future volatility of the firm. Please verify Mitek Systems
risk adjusted performance of
(0.00086473), and Mean Deviation of 1.5 to check out if the risk estimate we provide is consistent with the expected return of 0.0321%.
Our perspective of the latest Mitek Systems rise
Mitek Systems jensen alpha is up to 0.01.
Mitek Systems exhibits very low volatility with skewness of 1.45 and kurtosis of 6.41. However, we advise investors to further study Mitek Systems technical indicators to ensure that all market info is available and is reliable. Understanding different
market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mitek Systems' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact
Mitek Systems' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Current Takeaway on Mitek Systems Investment
When is the right time to buy or sell Mitek Systems? Buying stocks such as Mitek Systems isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 17th of May 2023, we believe that Mitek Systems is currently
undervalued with
very small probability of distress in the next two years. Our concluding 90 days 'Buy-vs-Sell' recommendation on the company is
Strong Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Mitek Systems. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com