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Mitek SystemsFRA:MKQ -3.24%78 Return-on-Tangible-Equity is 55.15% as of Mar. 2026, which is 501% above its 10-year median of 9.17. GuruFocus rates FRA:MKQ with a GF Score™ of 78/100 and a GF Value™ of €9.47 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,477 Software companies, Mitek Systems ranks better than 73.35% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Mitek Systems's annualized net income for the quarter that ended in Mar. 2026 was €33.0 Mil. Mitek Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €59.8 Mil. Therefore, Mitek Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 55.15%.
The historical rank and industry rank for Mitek Systems's Return-on-Tangible-Equity or its related term are showing as below:
FRA:MKQ'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -28.07 Med: 9.17 Max: 31.34
Current: 26.52
During the past 13 years, Mitek Systems's highest Return-on-Tangible-Equity was 31.34%. The lowest was -28.07%. And the median was 9.17%.
FRA:MKQ's Return-on-Tangible-Equity is ranked better than 73.35% of 2477
companies
in the Software industry
Industry Median: 8.83
vs FRA:MKQ: 26.52
Mitek Systems (FRA:MKQ) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Mitek Systems Return-on-Tangible-Equity Related Terms
Mitek Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mitek Systems's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:MKQ vs RDVT, GTM, IBTA: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Mitek Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mitek Systems Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Mitek Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mitek Systems's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 55.15% mean?
Mitek Systems (FRA:MKQ) has a Return-on-Tangible-Equity of 55.15% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mitek Systems and its competitors. This is 501% above median its historical median of 9.17. According to the industry distribution chart, Mitek Systems ranks #660 out of 2477 companies in the Software industry, placing it in the top 26.6%.
Is Mitek Systems' Return-on-Tangible-Equity too high?
Mitek Systems' current Return-on-Tangible-Equity of 55.15% is 501% above median its 10-year median of 9.17. The Software industry median Return-on-Tangible-Equity is 8.83. Mitek Systems' value of 55.15% is 524.6% above this industry median. Based on the distribution chart, Mitek Systems ranks #660 out of 2477 companies in the Software industry, which is above the industry midpoint. Overall, Mitek Systems has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mitek Systems' Return-on-Tangible-Equity compare to RDVT and GTM?
According to the Software industry distribution chart, Mitek Systems ranks #660 out of 2477 companies for Return-on-Tangible-Equity. This puts Mitek Systems in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.83. Mitek Systems' value of 55.15% is 524.6% above this benchmark. While the company's 10-year median is 9.17 vs. the industry median of 8.83, Mitek Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.83, based on 2,477 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mitek Systems's current Return-on-Tangible-Equity of 55.15% is 524.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mitek Systems and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mitek Systems's current Return-on-Tangible-Equity is 55.15%, which is 501% above median its own 10-year median of 9.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitek Systems stock overvalued right now?
Based on GuruFocus' analysis, Mitek Systems (FRA:MKQ) is currently considered Significantly Overvalued. The stock's GF Value™ is €9.47, compared to a current price of €16.12 — trading 70.2% above its estimated fair value. The current Return-on-Tangible-Equity is 55.15%, which is 501% above median its 10-year median of 9.17 and 524.6% above the Software industry median of 8.83. Mitek Systems' overall GF Score™ is 78/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Mitek Systems (FRA:MKQ), the current Return-on-Tangible-Equity is 55.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mitek Systems (FRA:MKQ) Overvalued in 2026?
Based on GuruFocus' analysis, Mitek Systems stock appears to be overvalued.
The current stock price of €16.12 is trading 70.2% above its estimated GF Value™ of €9.47.
GuruFocus considers Mitek Systems to be Significantly Overvalued.
Key valuation signals for FRA:MKQ:
Return-on-Tangible-Equity: 55.15% (501% above median its 10-year median of 9.17)
GF Value™: €9.47 vs. price of €16.12 (70.2% above fair value)
Industry Position: 524.6% above the Software median (#660 of 2477)
No single metric tells the full story. See the FRA:MKQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitek Systems Inc is engaged in the development, sale, and service of proprietary software solutions related to mobile imaging. The firm is a software development company with expertise in artificial intelligence, and machine learning. It serves more than 7,900 financial services organizations, financial technology (fintech) brands, telecommunications companies, and marketplace brands across the globe. The company's Mobile Deposit solution is used by consumers for mobile check deposits. The company's Mobile Verify verifies a user's identity online, enabling organizations to build safer digital communities, whereas CheckReader enables financial institutions to automatically extract data from a check image received across any deposit channel - branch, ATM, RDC, and mobile.
78GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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