MIND CTI (MNDO) AI Stock Analysis

• Market Cap: $26.99M
• Dividend Yield: 16.6%
• Average Volume (3M): 34.32K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.39
• Revenue Growth: -5.54%
• EPS Growth: -27.40%
• Country: US
• Employees: 136
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 20,366,325
• 10 Day Avg. Volume: 46,291
• 30 Day Avg. Volume: 34,318
• PEG Ratio: -0.60
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.53
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: 2.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $1.50 ▲(13.64%Upside)

The overall stock score of 65 reflects a balance between strong valuation metrics and financial stability against bearish technical indicators. The low P/E ratio and high dividend yield underscore undervaluation, while the strong balance sheet supports financial resilience. However, technical analysis signals potential price weakness, necessitating caution.

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 primarily through the sale and licensing of its software products and solutions to telecommunications operators and service providers. The company earns money through initial software sales, recurring maintenance fees, and professional services such as implementation and customization. Additionally, MIND CTI offers managed services and cloud-based solutions which provide ongoing, subscription-based revenue. The company also benefits from strategic partnerships with technology and telecommunications firms, which help expand its market reach and customer base, contributing to its overall revenue growth.

MIND CTI Financial Statement Overview

Summary

MIND CTI shows financial stability with a strong balance sheet, low debt levels, and consistent equity returns. However, declining revenues and slightly pressured profit margins indicate a need for growth in revenue streams. Cash flows remain stable but exhibit limited growth.

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	20.68M	21.45M	21.61M	21.55M	26.33M	23.37M
Gross Profit	10.46M	10.74M	10.87M	11.51M	13.88M	12.22M
EBITDA	3.72M	4.56M	4.95M	5.72M	7.02M	5.66M
Net Income	3.79M	4.63M	5.17M	5.29M	5.95M	5.38M
Balance Sheet
Total Assets	32.86M	30.70M	31.63M	31.74M	33.13M	32.42M
Cash, Cash Equivalents and Short-Term Investments	14.91M	15.75M	16.60M	17.48M	18.46M	17.02M
Total Debt	789.00K	825.00K	642.00K	886.00K	1.47M	1.84M
Total Liabilities	12.34M	6.41M	7.14M	7.94M	9.40M	9.30M
Stockholders Equity	20.52M	24.30M	24.49M	23.81M	23.73M	23.12M
Cash Flow
Free Cash Flow	3.88M	4.10M	4.04M	4.43M	6.82M	6.43M
Operating Cash Flow	3.90M	4.11M	4.10M	4.56M	6.90M	6.50M
Investing Cash Flow	-472.40K	2.29M	-1.54M	1.83M	-5.69M	-34.00K
Financing Cash Flow	-4.83M	-4.87M	-4.84M	-5.23M	-5.20M	-4.78M

MIND CTI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNDO, the sentiment is Negative. The current price of 1.32 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.50, and below the 200-day MA of 1.71, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 28.94 is Positive, neither overbought nor oversold. The STOCH value of 6.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNDO.

MIND CTI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	68 Neutral	$34.43M	140.67	0.75%	―	9.18%	―
MNDO	65 Neutral	$26.99M	7.23	18.26%	16.60%	-5.54%	-27.40%
Sector *	63 Neutral	£571.22M	24.42	-6.00%	2.36%	3.52%	-29.29%
AWRE	56 Neutral	$38.60M	―	-16.05%	―	-9.72%	25.68%
AIXI	38 Underperform	$29.82M	―	544.07%	―	19.01%	44.24%
CNTM	28 Underperform	$8.05M	―	-108.59%	―	―	-85.24%