Stocks/MNDO

MNDO

MIND C.T.I. Ltd
Technology·Software - Application
--
$0M market cap
Claude Rating
4/10UNDERWEIGHT
Revenue
$19.6M
Free Cash Flow
$4.0M
Rev Growth
+1.8%
FCF Margin
20.5%
P/FCF
--
EV/FCF
-3.3x
Fwd EV/EBITDA
-4.8x
Fair Value
$0.90
Upside
--

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. It

2-Year Price History

$0.92-44.6%
$1.0$1.2$1.4$1.6$1.8volJun 24Oct 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q44.40.7--0.6--0.8-0.019.5----------
Est2027-Q34.30.7--0.5--0.7-0.018.7----------
Est2027-Q24.30.7--0.5--0.7-0.018.0----------
Est2027-Q14.40.6--0.5--0.4-0.017.3----------
Est2026-Q44.60.7--0.6--0.9-0.016.9----------
Est2026-Q34.50.7--0.5--0.7-0.016.0----------
Est2026-Q24.50.7--0.5--0.8-0.015.2----------
Est2026-Q14.70.7--0.5--0.5-0.014.4----------
Act2026-Q15.11.00.90.90.60.6-0.014.00.920.535.0%--3.3x
Act2025-Q44.90.90.81.01.31.3-0.013.60.920.837.0%----
Act2025-Q34.80.80.60.71.21.2-0.012.51.020.728.2%----
Act2025-Q24.80.60.30.50.90.9-0.011.41.020.712.5%----
Act2025-Q15.00.60.40.50.70.7-0.014.90.820.620.0%----
Act2024-Q45.21.41.31.20.30.3-0.015.80.820.745.5%----
Act2024-Q35.21.00.70.91.01.0-0.015.50.520.732.7%----
Act2024-Q25.31.31.11.12.02.0-0.014.60.520.649.4%----
Act2024-Q15.81.51.21.30.90.9-0.017.50.620.565.3%----
Act2023-Q45.61.61.21.40.70.7-0.016.60.620.540.3%----
Act2023-Q35.31.41.21.31.01.0-0.015.90.720.547.3%----
Act2023-Q25.31.31.11.11.91.9-0.015.00.820.547.8%----
Act2023-Q15.51.51.31.30.60.5-0.018.00.820.465.6%----
Act2022-Q45.41.41.21.31.41.4-0.017.50.920.441.3%----
Act2022-Q35.31.41.41.31.01.0-0.016.00.920.454.8%----
Act2022-Q25.21.41.31.21.61.6-0.115.11.220.460.0%19.9x--
Act2022-Q15.71.71.61.50.50.5-0.018.91.420.376.1%----
Historical Valuation

Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.

YearPriceRev GrEBITDA %EBITDAEV/EBITDAEV/FCFP/EP/S
20221.5027.3%6
20231.56+0.3%26.5%6
20241.76-0.8%24.0%5
20251.15-9.3%14.9%3
TTM-5.5%16.7%3
2026E-6.4%0.1%0
2027E-4.9%0.1%0

EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.

AI Analysis

LLM Evaluations

Claude4/10UNDERWEIGHTFV: $0.90

MIND C.T.I. is a classic value trap — optically cheap (2.4x EV/FCF, 20% trailing dividend yield now eliminated) but facing structural revenue decline in a shrinking niche (legacy telecom billing). Revenue has declined for multiple consecutive years and management guidance points to continued headwinds. The elimination of the dividend removes the primary reason income investors held the stock. While the $13.6M cash balance (~62% of market cap) provides downside protection, the operating business is deteriorating rapidly (operating income down 52% YoY) with no credible growth catalyst. AI-driven competitive disruption and telecom consolidation are secular headwinds that small-scale players like MNDO cannot overcome. The share buyback may slow the decline in per-share value but won't reverse the fundamental trajectory. Geopolitical risk from Israel-Iran tensions adds a tail risk. This is a melting ice cube with a cash cushion — not a buy despite the low multiples.

Catalyst Share buyback program could support the stock near cash-per-share floor (~$0.65/share in net cash). A potential acquirer could pay a premium for the customer base and recurring revenue stream. Any stabilization in telecom customer churn would be a positive surprise.
Risk Accelerating revenue decline as AI-driven billing solutions displace MNDO's legacy products, combined with the loss of income-seeking shareholders now that the dividend has been eliminated, creating sustained selling pressure with no natural buyer base.
Trend
DETERIORATING
Mgmt
4/10
Quarter
3/10
Exp. Move
-12.0%

Valuation & Metrics

Market Stats

Price--
Market Cap$0M
Enterprise Value$-13M
P/S Ratio0.0x
P/FCF--
EV/FCF-3.3x
FCF Margin (TTM)20.5%
FCF Yield0.0%
Dividend Yield (TTM)0.0%
Annual Dilution-0.7%
CurrencyUSD

TTM Financial Snapshot

Revenue$19.6M
Net Income$3.0M
Free Cash Flow$4.0M

Revenue Growth (YoY)+1.8%
EBITDA Margin16.7%
Net Margin15.3%
FCF Margin20.5%
CapEx % of Revenue0.1%
SBC % of Revenue0.5%
ROIC28.2%
WC Change % Rev4.0%
Interest Coverage--

Forward Outlook & Risk

Short Interest

Short % of Float--
Short Shares0.0M
Days to Cover1.0
Change (vs Prior)-29.3%
Need at least 2 settlement dates for chart

Forward Projections & Estimates

NTM Revenue Growth-6.4%
Forward FCF Margin16.0%
Forward EBITDA Margin14.9%
Forward P/FCF0.0x
Forward EV/FCF-4.5x
Forward Int. Coverage--
Model Risk Score7/10
Bankruptcy Odds2%
Est. Borrow Rate8.0%
Terminal EV/FCF6.0x
LT Growth-3.0%
LT FCF Margin16.0%

Employees

Headcount136
Revenue / Employee$143,721
Gross Profit / Employee$74,647

Institutional Ownership

Headline & net flow

NEUTRAL
Net flow · still filing
No float data — flow unavailable.

Ownership composition

Active
10.7%(-7.3% YoY)
15 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
0.0%(-0.7% YoY)
0 filers
Vanguard, iShares, SPDR
Market makers
0.0%(-0.2% YoY)
0 filers
Citadel, Susquehanna
Insiders
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
MORGAN STANLEY$1.1M$1.62−$42K−$159K-0.3%$1.65T
ACADIAN ASSET MANAGEMENT LLC$221K$2.09+$0+$0-0.5%$70.48B
Glenorchy Capital Ltd$195K$1.61−$4K−$94K+2.7%$185M
CITADEL ADVISORS LLC$114K$1.36+$14K+$109K-0.4%$138.22B
RBF Capital, LLC$86K$1.15−$2K+$3K+0.1%$2.03B
BNP PARIBAS FINANCIAL MARKETS$71K$1.59−$12K−$18K-0.2%$149.31B
ADVISOR GROUP HOLDINGS, INC.$27K$1.36+$6K+$22K-0.3%$67.63B
RENAISSANCE TECHNOLOGIES LLC$26K$1.45+$12K+$26K+1.2%$63.91B
Signal Advisors Wealth, LLC$21K$1.15−$21K+$21K-0.7%$1.40B
LPL Financial LLC$13K$1.15+$1K+$13K-0.2%$372.65B
Centiva Capital, LP$12K$1.15+$12K+$12K+0.5%$2.14B
WELLS FARGO & COMPANY/MN$10K$1.67+$0−$23K-0.2%$497.71B
SBI Securities Co., Ltd.$3K$1.44+$0−$0+0.9%$3.62B
UBS Group AG$2K$1.57+$0+$2K-0.3%$562.11B
Caitong International Asset Management Co., Ltd$0$1.15+$0+$0+1.3%$540M
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)NEUTRAL
Holders
+0.04%
avg per quarter
Holders (ex-self)
+0.04%
excl. this stock
Buyers (this Q)
+0.02%
8 buyers · $0.00B in
Sellers (this Q)
-0.20%
5 sellers · $0.00B out
alpha coverage: 100% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
-4.8%
how holders react when this stock falls
On quiet Qs
-9.9%
−10% to +10% baseline
On rallies (+10%+)
-2.4%
how they react when this stock rises
Holders' portfolio flow this Q
+4.2%
inflows — adds are organic
Sellers' portfolio flow this Q
+6.4%
Sellers grew AUM elsewhere — opinionated cut of this stock.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-1.9%
Holder mid (any stock)
-2.6%
Holder rally (any stock)
-2.4%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

0867K1.7M2.6M3.5M$1.10$1.35$1.59$1.84$2.092021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
MORGAN STANLEY958KInvesco Ltd.Burgundy Asset Management Ltd.ACADIAN ASSET MANAGEMENT LLC193KGlenorchy Capital Ltd170KHighTower Advisors, LLCRBF Capital, LLC75KFIRST MANHATTAN COKoss-Olinger Consulting, LLCRENAISSANCE TECHNOLOGIES LLC22K

Analyst Coverage

Analyst Coverage
Analyst Ratings
1
Buy: 1Consensus: Buy

Corporate

Order Flow (FINRA, ~3w lag)

50.2%retail-7.1pp
4.0%dark-1.1pp
week of 2026-04-13
0%20%40%60%80%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Filing Risk Analysis

Filing Risk Scores

MIND CTI LTD: Shrinking Core and Unsustainable Payouts Amidst Regional Escalation

Overall Risk
6/10
Fraud
3/10
Dilution
4/10
Insolvency
2/10
Earnings Overstated
4/10
Hidden Liabilities
5/10
Legal
3/10
Audit Warnings
2/10
Hidden Upside
4/10
Contextually Acceptable
5/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

MIND C.T.I. reported a significant performance decline in its FY2025 results (published March 10, 2026), with annual revenue falling 9.3% to $19.4 million and net income plunging 43% to $2.6 million. Most notably, the Board of Directors has ended the company's long-standing policy of paying an annual dividend, pivoting instead to a share repurchase program, which removes the primary incentive for its traditional income-seeking investor base (Sources: Stock Titan, Quiver Quantitative).

🐻 Bear Case

The bear case is centered on structural decay and the loss of the stock's 'yield play' status. Revenue and profitability are trending downward simultaneously; operating income fell from $4.4 million (20% margin) in 2024 to just $2.1 million (11% margin) in 2025. With earnings per share (EPS) shrinking to $0.13 and management warning of continued 'revenue headwinds' into 2026, the company lacks a viable growth catalyst to offset its shrinking core billing business (Sources: Intellectia.AI, Grafa).

🚩 Red Flags

Key red flags include a massive 52% year-over-year drop in operating income and the abrupt elimination of the annual dividend. Additionally, the company's dividend payout ratio previously reached an unsustainable 169% before the cut. Technical indicators currently show the stock in a firm 'Downtrend' with its price and moving averages crossing negatively (Sources: Market Chameleon, WallStreetZen).

⚔️ Competitive Threats

MNDO is facing 'intensified market competition' and severe pricing pressure from the 'rapid emergence of AI-driven solutions' that automate billing and customer care more efficiently. Furthermore, ongoing consolidation in the telecommunications industry is shrinking the company's addressable market as merged entities move toward larger, integrated BSS/OSS providers (Sources: Stock Titan, DayTraders.com).

💬 Customer Sentiment

Sentiment among the existing customer base appears weak, as management explicitly cited 'continued customer churn' and 'lower spending levels' as primary drivers for the revenue decline. Customers are increasingly focused on cost reduction and are prioritizing AI-integrated efficiency tools over MNDO's legacy product suite (Source: Benzinga via DayTraders.com).