MIND CTI (MNDO) AI Stock Analysis

• Market Cap: $24.64M
• Dividend Yield: 18.18%
• Average Volume (3M): 29.20K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.40
• Revenue Growth: -9.54%
• EPS Growth: -40.68%
• Country: US
• Employees: 136
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 20,366,325
• 10 Day Avg. Volume: 40,871
• 30 Day Avg. Volume: 29,203
• PEG Ratio: -0.75
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 9.79
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 5.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $1.50 ▲(23.97% Upside)

MIND CTI's strong financial stability and attractive valuation are key strengths, offering potential value for investors. However, declining revenue and bearish technical indicators present risks that could impact future performance.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a high equity ratio and low debt-to-equity ratio indicates financial stability, reducing financial risk and providing a solid foundation for future growth.

Healthy Cash Flow

Efficient cash generation relative to net income ensures the company can sustain operations, invest in growth opportunities, and return value to shareholders.

High Gross Profit Margin

A high gross profit margin reflects the company's ability to maintain pricing power and cost efficiency, which supports long-term profitability and competitive positioning.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in market demand or competitive pressures, which could impact the company's ability to grow and sustain profitability.

Pressure on Profit Margins

Declining net profit margins suggest increasing costs or pricing pressures, which could erode profitability and affect the company's financial health over time.

Market Challenges

Facing shrinking markets and strong competition can limit growth opportunities and require strategic adjustments, potentially affecting long-term market position and revenue potential.

MIND CTI Business Overview & Revenue Model

Company Description

MIND C.T.I. Ltd., together with its subsidiaries, designs, develops, markets, supports, implements, and operates billing and customer care systems in the Americas, Europe, Israel, the Asia Pacific, and Africa. It operates in two segments, Billing and Related Services and Messaging. The company offers billing and customer care solutions that support various services, such as voice, data, and content services, as well as prepaid, postpaid, and pay-in-advance payment models in a single platform. Its solutions also include a workflow engine to support the implementation of business processes, including subscriber registration, order management, trouble ticket, and debt collection; and an integral point of sale solution that covers all dealer, store and cashier management, and sales cycle related activities. In addition, the company offers professional services comprising turnkey project delivery, customer support and maintenance, integration, customizations, and project management, as well as managed services, including day to day billing operational tasks to its billing and customer care customers. Further, it provides PhonEX ONE, a call management system that collects, records, and stores call information, which is used by organizations for telecom expense management, call accounting, traffic analysis, and fraud detection. The company offers its products directly, as well as through distributors and resellers primarily to communication service providers, such as traditional wireline and wireless, voice over IP, broadband IP network operators, wireless internet service providers, LTE operators, cable operators, and mobile virtual network operators. MIND C.T.I. Ltd. was incorporated in 1995 and is headquartered in Yokne'am Illit, Israel.

How the Company Makes Money

MIND CTI generates revenue through multiple streams, primarily by selling its telecommunications software and services to businesses and service providers. Key revenue streams include licensing fees for its VoIP and data solutions, recurring subscription fees from clients utilizing its software-as-a-service (SaaS) offerings, and professional services related to system integration and support. Additionally, the company has established partnerships with telecom operators and technology providers, which not only expand its market reach but also enhance its product offerings, thereby contributing to its overall revenue growth.

MIND CTI Financial Statement Overview

Summary

MIND CTI shows financial stability with a strong balance sheet, low debt, and healthy profit margins. However, declining revenue and profit margins indicate pressure on profitability. Cash flows are stable, but growth in cash reserves is limited.

Income Statement

The income statement shows stable but declining revenue trends with revenue decreasing from $26.33M in 2021 to $21.45M in 2024. Gross profit margin remains healthy at 50.1% in 2024. However, the net profit margin is slightly declining, moving from 22.6% in 2021 to 21.6% in 2024, indicating some pressure on profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 79.1% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.03, suggesting minimal leverage and reduced financial risk. Return on equity has remained stable, providing consistent returns to shareholders.

Cash Flow

Cash flow analysis indicates robust operating cash flow, with a slight increase in free cash flow from $4.04M in 2023 to $4.10M in 2024. The operating cash flow to net income ratio remains healthy, reflecting efficient cash generation relative to net income. However, free cash flow growth has stagnated, indicating limited growth in cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.77M	21.45M	21.61M	21.55M	26.33M	23.37M
Gross Profit	10.10M	10.74M	10.87M	11.51M	13.88M	12.22M
EBITDA	3.34M	5.17M	5.75M	5.89M	7.13M	6.07M
Net Income	2.89M	4.63M	5.17M	5.29M	5.95M	5.38M
Balance Sheet
Total Assets	29.37M	30.70M	31.63M	31.74M	33.13M	32.42M
Cash, Cash Equivalents and Short-Term Investments	12.49M	15.75M	16.60M	17.48M	18.46M	17.02M
Total Debt	961.00K	825.00K	642.00K	886.00K	1.47M	1.84M
Total Liabilities	7.18M	6.41M	7.14M	7.94M	9.40M	9.30M
Stockholders Equity	22.18M	24.30M	24.49M	23.81M	23.73M	23.12M
Cash Flow
Free Cash Flow	3.06M	4.10M	4.04M	4.43M	6.82M	6.43M
Operating Cash Flow	3.08M	4.11M	4.10M	4.56M	6.90M	6.50M
Investing Cash Flow	3.89M	2.29M	-1.54M	1.83M	-5.69M	-34.00K
Financing Cash Flow	-4.50M	-4.87M	-4.84M	-5.23M	-5.20M	-4.78M

MIND CTI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNDO, the sentiment is Positive. The current price of 1.21 is above the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.13, and below the 200-day MA of 1.37, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNDO.

MIND CTI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNDO	70 Outperform	$24.64M	8.66	12.73%	18.18%	-9.54%	-40.68%
NTWK	62 Neutral	$35.51M	73.96	1.40%	―	7.70%	-36.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNTM	59 Neutral	$20.24M	―	―	―	419.60%	75.23%
AWRE	48 Neutral	$47.45M	-8.41	-18.98%	―	2.73%	25.65%
AIXI	41 Neutral	$8.85M	-0.45	―	―	19.01%	44.24%

MIND CTI Corporate Events

MIND CTI Announces Q3 2025 Results and Share Buyback Program

MIND CTI reported its financial results for the third quarter of 2025, showing a decline in revenues and net income compared to the same period in 2024. Despite the challenging environment, the company successfully extended its solutions for existing customers and remains focused on advancing its technology roadmap, including 5G and AI technologies. The Board of Directors approved a share repurchase program of up to $2.4 million, reflecting a shift from annual dividends to share buybacks, aiming to enhance shareholder value without hindering growth plans.