MIND CTI (MNDO) AI Stock Analysis

• Market Cap: $23.83M
• Dividend Yield: 18.97%
• Average Volume (3M): 29.20K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.43
• Revenue Growth: -9.54%
• EPS Growth: -40.68%
• Country: US
• Employees: 136
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 20,366,325
• 10 Day Avg. Volume: 40,871
• 30 Day Avg. Volume: 29,203
• PEG Ratio: -0.21
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 5.94
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 5.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $1.50 ▲(19.05% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

MNDO’s score is driven primarily by strong financial stability (low leverage and healthy cash generation) and attractive valuation (low P/E and high dividend yield). Offsetting these positives are deteriorating profitability/revenue trends in 2025 and weaker technical positioning with price below key moving averages and subdued momentum indicators.

Positive Factors

Conservative Balance Sheet

Very low leverage and a sizable equity base reduce solvency and refinancing risk. With debt-to-equity near 0.04 and a high balance-sheet score, the company has durable financial flexibility to fund technology work, execute buybacks, or absorb downturns without relying on external borrowing.

Strong Free Cash Flow

High-quality cash generation—FCF roughly equal to net income with year-over-year growth—provides repeatable funding for operations, R&D, and capital returns. Reliable cash conversion cushions margin swings and lowers dependence on external capital over the medium term.

High Recurring Services Mix

A revenue mix dominated by maintenance and services (96%) yields a sticky, recurring base and predictable cashflows. This supports steady follow-on orders and service renewal economics, improving revenue stability and the visibility of near-term cash generation.

Negative Factors

Revenue Decline Trend

Top-line contraction—full-year revenue falling in 2025—erodes operating leverage and limits the firm’s ability to reinvest in product and sales. Sustained revenue decline constrains long-term growth prospects and increases reliance on balance-sheet liquidity or buybacks to support returns.

Margin Compression & Lower Returns

Material margin step-down and reduced earnings power indicate weakening unit economics and cost pressure. With net margin compressed and ROE reduced, the business must restore pricing, scale, or efficiency to recover return on invested capital and long-term profitability.

Persistent Industry Headwinds

Structural market pressures—consolidation, churn, AI-driven price compression, and subdued client budgets—are described as ongoing. These secular forces can depress deal sizes, lengthen sales cycles, and require sustained product or go-to-market changes to regain growth momentum.

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 C.T.I. primarily makes money by selling and supporting software solutions for telecom billing and customer care. Revenue typically comes from (1) software license fees (or other forms of software usage rights), (2) implementation and integration services to deploy and tailor the systems to a customer’s environment, and (3) ongoing maintenance and support contracts that provide updates and technical support after deployment. If the company offers hosting or managed/recurring service arrangements, those would contribute recurring revenue; however, specific details on the mix of license vs. services vs. recurring revenue, and any named major partnerships driving earnings, are null.

MIND CTI Financial Statement Overview

Summary

Financial strength is supported by a very conservative balance sheet (low leverage; Balance Sheet Score 86) and solid, consistent free cash flow generation (Cash Flow Score 78). The main drag is weakening operating performance: revenue has been flat-to-down and profitability stepped down in 2025 versus prior years (Income Statement Score 62), indicating margin compression and weaker operating leverage.

Income Statement

Profitability remains solid with ~51% gross margin and ~13% net margin in 2025, but earnings power has clearly stepped down versus prior years (net margin ~22%–25% during 2020–2024). Revenue has been roughly flat to down recently (2025 down from 2024, and 2024 essentially flat vs. 2023), and operating margins compressed meaningfully in 2025, suggesting weaker operating leverage and/or higher costs. Overall: still profitable, but the trajectory has deteriorated over the last year.

Balance Sheet

The balance sheet looks very conservatively financed: debt is low relative to equity (debt-to-equity ~0.04 in 2025) with a sizable equity base. Returns on equity remain healthy (about 11% in 2025, though down from ~19%–25% in 2021–2024), indicating the company can generate profits without relying on leverage. Key weakness is the decline in return on equity alongside lower earnings, but overall leverage risk appears minimal.

Cash Flow

Cash generation is strong and high quality: free cash flow is essentially in line with net income in 2025 (near 1:1 conversion), and free cash flow grew materially in 2025 versus 2024. A watch item is that operating cash flow did not fully cover net income in 2025 (coverage just under 1x), implying some period working-capital or timing headwinds despite solid overall conversion. Even with that, free cash flow levels remain healthy and consistent across years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.46M	21.45M	21.61M	21.55M	26.33M
Gross Profit	9.92M	10.74M	10.87M	11.51M	13.88M
EBITDA	2.36M	5.17M	5.75M	5.89M	7.13M
Net Income	2.60M	4.63M	5.17M	5.29M	5.95M
Balance Sheet
Total Assets	30.17M	30.70M	31.63M	31.74M	33.13M
Cash, Cash Equivalents and Short-Term Investments	13.55M	15.75M	16.60M	17.48M	18.46M
Total Debt	929.00K	825.00K	642.00K	886.00K	1.47M
Total Liabilities	7.12M	6.41M	7.14M	7.94M	9.40M
Stockholders Equity	23.05M	24.30M	24.49M	23.81M	23.73M
Cash Flow
Free Cash Flow	3.96M	4.10M	4.04M	4.43M	6.82M
Operating Cash Flow	3.99M	4.11M	4.10M	4.56M	6.90M
Investing Cash Flow	4.27M	2.29M	-1.54M	1.83M	-5.69M
Financing Cash Flow	-4.63M	-4.87M	-4.84M	-5.23M	-5.20M

MIND CTI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.26 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.20, and above the 200-day MA of 1.23, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 27.45 is Neutral, 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
MNDO	72 Outperform	$23.83M	9.04	12.73%	18.97%	-9.54%	-40.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NTWK	59 Neutral	$43.25M	36.21	1.40%	―	7.70%	-36.01%
CNTM	59 Neutral	$35.27M	-4.76	86.81%	―	419.60%	75.23%
AWRE	46 Neutral	$31.32M	-6.80	-21.18%	―	2.73%	25.65%
AIXI	39 Underperform	$2.75M	-0.28	―	―	19.01%	44.24%

MIND CTI Corporate Events

MIND CTI Posts Lower 2025 Earnings, Shifts to Share Buybacks as AGM Set for May 6

On March 10, 2026, Israel-based MIND CTI reported that fourth-quarter 2025 revenue fell to $4.9 million from $5.2 million a year earlier, with operating income dropping to $0.8 million and net income to $1.0 million, even as operating cash flow improved to $1.2 million. For full-year 2025, revenue declined to $19.4 million from $21.4 million and net income nearly halved to $2.6 million, as industry consolidation, customer churn, AI-driven pricing pressure, and lower client spending weighed on results despite a solid $13.6 million cash position and steady follow-on orders from existing customers.

The company’s 2025 revenue mix remained dominated by maintenance and services, which contributed 96% of annual sales, with Europe accounting for 59% of revenue, the Americas 34%, and the rest of the world 7%. Management said these market headwinds are expected to persist into 2026 but emphasized ongoing investments in technology transformation, AI integration, and revamped go-to-market efforts, while also confirming a capital return shift from dividends to a share repurchase program and scheduling its 2026 annual general meeting for May 6, 2026 to vote on auditor reappointment, board elections, and approval of the 2025 financial statements.

The most recent analyst rating on (MNDO) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on MIND CTI stock, see the MNDO Stock Forecast page.