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Mitek Systems

MITK
69
Software - Application · Technology
Also trades as: 0K1W.L GBP 0.17 (-1.28%)
Price
$17.07
-0.39 (-2.23%)
Market Cap
$770.9M
Exchange
NASDAQ
Winston Score
69
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 9, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
21/30
Growth
Strong
15/20
Cash Flow
Exceptional
10/10
Stability
Strong
8/10
Valuation
Good
6/10
Ownership
Mixed
6/15
Dividends
Not counted
n/a

66 of 95 counted points = Winston Score 69. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count rising — dilution

+4.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 45.1M (2021) → 46.9M (2025)

§Winston Score History

The full picture

Mitek Systems makes software that helps companies verify people's identities and read documents automatically. Its main products let banks, fintech apps, and other businesses scan government IDs, check passports, and confirm that a real person is signing up — not a fraudster. The company is best known for its mobile check deposit technology, which is used by hundreds of millions of bank customers across the United States.

Mitek earns money through software licenses and recurring subscription fees, giving it a high gross margin near 88%. It operates primarily in the United States and Europe, serving financial institutions, payment companies, and online marketplaces that need to meet identity verification regulations. Its large installed base in mobile banking creates some switching costs, but the identity verification market is competitive, with larger players like Jumio and Socure pushing for the same customers. The key growth driver is rising demand for digital identity checks as more financial services move online and regulators tighten anti-fraud requirements.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+264.0% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$35M/ year

→ Flat (+2% vs prior year)

19.6% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

3.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$100M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Mitek Systems is a rare growth stock that's already generating positive cash flow while growing at 18%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
84.9%
Premium pricing power — 84.9% gross margin
Profit after running costs
Operating Margin
21.4%
Excellent — 21.4% operating margin
Return on the money invested
ROCE
11.7%
Below par — 11.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+11.1%
Steady sales growth (+11.1% YoY)
Profit growth
EPS YoY
+46.5%
Earnings growing fast (+46.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
270%
Turns 270% of profit into real cash
Spare cash per sale
FCF Margin
26.6%
Converts sales into free cash efficiently (26.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.21
Conservative — low debt load (0.21)
Covers its interest
Interest Cover
4.88x
Adequate interest coverage (4.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
34.1x
Pricey — P/E 34.1

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+19.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (34.1 → 14.8)

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Dividends

Not applicable for this business.
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