ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Mitek Systems's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 12.50%.
As of today (2026-06-28), Mitek Systems's WACC % is 6.76%. Mitek Systems's ROC % is 5.29% (calculated using TTM income statement data).
Mitek Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Mitek Systems (FRA:MKQ) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Mitek Systems's WACC % is 6.76%. Mitek Systems's ROC % is 5.29% (calculated using TTM income statement data).
Mitek Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Mitek Systems ROC % Related Terms
Mitek Systems ROC % Historical Data
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The historical data trend for Mitek Systems's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Mitek Systems (FRA:MKQ) has a ROC % of 12.50% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Mitek Systems and its competitors.
Is Mitek Systems' ROC % too high?
Mitek Systems' current ROC % is 12.50%. The Software industry median ROC % is 3.03. Mitek Systems' value of 12.50% is 312.5% above this industry median. 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' ROC % compare to PD and IBTA?
Mitek Systems' ROC % of 12.50% can be compared against companies in the Software industry. The industry median ROC % is 3.03. Mitek Systems' value of 12.50% is 312.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Software company?
The median ROC % among Software companies is 3.03, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mitek Systems's current ROC % of 12.50% is 312.5% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Mitek Systems and its competitors. For the Software industry, the median ROC % is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mitek Systems's current ROC % is 12.50%. 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 €8.73, compared to a current price of €15.11 — trading 73.1% above its estimated fair value. The current ROC % is 12.50% and 312.5% above the Software industry median of 3.03. Mitek Systems' overall GF Score™ is 78/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Mitek Systems (FRA:MKQ), the current ROC % is 12.50% 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 €15.11 is trading 73.1% above its estimated GF Value™ of €8.73.
GuruFocus considers Mitek Systems to be Significantly Overvalued.
Key valuation signals for FRA:MKQ:
ROC %: 12.50%
GF Value™: €8.73 vs. price of €15.11 (73.1% above fair value)
Industry Position: 312.5% above the Software median
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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