NasdaqGM:MNDO

Stock Analysis Report

Executive Summary

MIND C.T.I. Ltd., together with its subsidiaries, designs, develops, markets, supports, implements, and operates real-time and offline convergent billing and customer care software solutions in the United States, the United Kingdom, Europe, Israel, and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has MIND C.T.I's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MNDO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

MNDO

-6.6%

US Software

-4.2%

US Market


1 Year Return

3.7%

MNDO

29.5%

US Software

14.0%

US Market

Return vs Industry: MNDO underperformed the US Software industry which returned 35.1% over the past year.

Return vs Market: MNDO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

MNDOIndustryMarket
7 Day-0.8%-6.6%-4.2%
30 Day1.2%1.8%-1.8%
90 Day4.1%8.4%2.6%
1 Year16.3%3.7%30.8%29.5%16.3%14.0%
3 Year32.4%-6.6%138.3%128.2%43.2%34.0%
5 Year13.2%-34.6%203.2%181.5%65.9%47.6%

Price Volatility Vs. Market

How volatile is MIND C.T.I's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MIND C.T.I undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNDO ($2.58) is trading below our estimate of fair value ($7.1)

Significantly Below Fair Value: MNDO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MNDO is good value based on its PE Ratio (9.8x) compared to the Software industry average (49.4x).

PE vs Market: MNDO is good value based on its PE Ratio (9.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MNDO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MNDO is good value based on its PB Ratio (2.5x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is MIND C.T.I forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.1%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as MIND C.T.I has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has MIND C.T.I performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNDO has high quality earnings.

Growing Profit Margin: MNDO's current net profit margins (24.5%) are lower than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: MNDO's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: MNDO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MNDO had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the Software industry average (18.4%).


Return on Equity

High ROE: MNDO's Return on Equity (25.2%) is considered high.


Next Steps

Financial Health

How is MIND C.T.I's financial position?


Financial Position Analysis

Short Term Liabilities: MNDO's short term assets ($18.3M) exceed its short term liabilities ($6.8M).

Long Term Liabilities: MNDO's short term assets ($18.3M) exceed its long term liabilities ($2.3M).


Debt to Equity History and Analysis

Debt Level: MNDO is debt free.

Reducing Debt: MNDO has not had any debt for past 5 years.

Debt Coverage: MNDO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MNDO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MNDO has a low level of unsold assets or inventory.

Debt Coverage by Assets: MNDO's debt is not covered by short term assets (assets are -1.6489479675654E+17x debt).


Next Steps

Dividend

What is MIND C.T.I's current dividend yield, its reliability and sustainability?

10.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MNDO's dividend (10.09%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MNDO's dividend (10.09%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: MNDO's dividend payments have been volatile in the past 10 years.

Growing Dividend: MNDO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (98.6%), MNDO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average board tenure


CEO

Eisinger Iancu (61yo)

24.8yrs

Tenure

US$503,690

Compensation

Ms. Monica Iancu, also known as Eisinger, founded MIND C.T.I. Ltd in 1994 and has been its Chief Executive Officer and President since April 6, 1995. Ms. Iancu co-founded Mind Software Inc., a subsidiary o ...


CEO Compensation Analysis

Compensation vs Market: Eisinger's total compensation ($USD503.69K) is about average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Eisinger's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Monica Iancu
Founder24.8yrsUS$503.69k16.74% $8.5m
Mihail Rotenberg
Chairman of the Board7.8yrsno datano data
Joseph Tenne
External Director5.5yrsno datano data
Meir Nissensohn
External Director5.5yrsno datano data

6.6yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MNDO's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MIND C.T.I. Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MIND C.T.I. Ltd
  • Ticker: MNDO
  • Exchange: NasdaqGM
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$50.526m
  • Shares outstanding: 19.81m
  • Website: https://www.mindcti.com

Number of Employees


Location

  • MIND C.T.I. Ltd
  • Building #7
  • Industrial Park
  • Yokne'am Illit
  • 20692
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNDONasdaqGM (Nasdaq Global Market)YesOrdinary SharesUSUSDAug 2000
MC2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2000

Biography

MIND C.T.I. Ltd., together with its subsidiaries, designs, develops, markets, supports, implements, and operates real-time and offline convergent billing and customer care software solutions in the United States, the United Kingdom, Europe, Israel, and internationally. 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 processes. In addition, the company offers professional services comprising installation, turnkey project implementation services, customer support, training and maintenance services, software and process customization, and project management, as well as managed services, including day to day billing operational tasks primarily 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 corporations for telecom expense management, call accounting, traffic analysis, and fraud detection. The company offers its products directly, as well as through network equipment vendors and systems integrators, and resellers primarily to communication providers, such as traditional wireline and wireless, voice over IP, broadband IP network operators, LTE operators, cable operators, and mobile virtual network operators. The company was founded in 1995 and is headquartered in Yokne'am Illit, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:33
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.