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MNDO

MIND C.T.I NasdaqGM:MNDO Stock Report

Last Price

US$2.25

Market Cap

US$45.1m

7D

-3.6%

1Y

-29.8%

Updated

24 Sep, 2022

Data

Company Financials
MNDO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends4/6

MNDO Stock Overview

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.

MIND C.T.I. Ltd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MIND C.T.I
Historical stock prices
Current Share PriceUS$2.25
52 Week HighUS$3.41
52 Week LowUS$2.20
Beta0.86
1 Month Change-6.26%
3 Month Change-7.61%
1 Year Change-29.84%
3 Year Change-4.47%
5 Year Change-13.32%
Change since IPO-77.55%

Recent News & Updates

Sep 06

MIND C.T.I.: Exposed To The Soft Europe Market As Revenues Drop

Summary MIND C.T.I. recently reported its Q2 2022 financial results. The firm provides communications company billing software and related products worldwide. 51% of MNDO's revenue comes from Europe and the global slowdown, which may be especially pronounced there, may hit revenue and net results hard. I'm on Hold for MNDO in the near term. A Quick Take On MIND C.T.I. MIND C.T.I. Ltd (MNDO) reported its Q2 2022 financial results on August 11, 2022, with decreasing revenue and reduced net income. The company provides a range of billing and customer care software for telecommunications service providers worldwide. Since management has communicated little of its intentions, other than to pursue M&A opportunities, it is difficult to develop a bullish case for this contracting-revenue company. I'm on Hold for MNDO for the near term. MIND C.T.I. Overview Yoqneam, Israel-based MIND C.T.I. was founded in 1995 to develop software support systems for telecommunications providers of all types. The firm is headed by founder and Chief Executive Officer Monica Iancu, who was previously Chairperson of the Board until 2012 and is a graduate of Technion - Israel Institute of Technology. The company's primary offerings include: Billing Customer care Workflow engine Point of sale Unified communications analytics Call accounting Managed services The firm acquires customers via its direct sales and market teams and targets all types of communications services providers, including wireline, wireless, cable, IP services and Quad-play carriers. In the first six months of 2022, MNDO's customers in Europe accounted for 51% of revenue and customers from the Americas produced 43% of revenue. MIND C.T.I.'s Market & Competition According to a recent market research report by Market Research Future, the global market for telecom billing and revenue management is expected to reach $19.7 billion by 2027. This represents a forecast CAGR of 11.0% from 2022 to 2027. The main drivers for this expected growth are increased demand for revenue assurance, fraud management and partner & interconnect management requirements. Also, North America is expected to produce the greatest demand through 2027, followed by the European market, the Asia Pacific region and the MENA/South America combined regions. Major competitive or other industry participants include: Netcracker CSG Systems International Inc. Oracle Telefonaktiebolaget LM Ericsson Huawei Technologies Co. Ltd. SAP SE Comarch SA Sterlite Technologies Limited Emida Commerx MIND C.T.I.'s Recent Financial Performance Over the past several quarters, total revenue by quarter has dropped per the chart below: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has also fallen materially in the past five quarters: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have varied as the chart shows here: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating income by quarter has dropped in recent reporting periods: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have remained relatively flat to slightly down in recent quarters: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, MNDO's stock price has fallen 27.8% vs. the U.S. S&P 500 index' drop of around 13.4%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For MIND C.T.I. Below is a table of relevant capitalization and valuation figures for the company: Measure [TTM] Amount Enterprise Value / Sales 1.40 Revenue Growth Rate -4.8% Net Income Margin 23.8% GAAP EBITDA % 27.1% Market Capitalization $47,350,000 Enterprise Value $33,450,000 Operating Cash Flow $5,180,000 Earnings Per Share (Fully Diluted) $0.27 (Source - Seeking Alpha) As a reference, a relevant partial public comparable would be CSG Systems International (CSGS); shown below is a comparison of their primary valuation metrics: Metric CSG Systems Int'l Mind C.T.I. Variance Net Income Margin 4.2% 23.75% 464.1% Revenue Growth Rate 5.1% 27.1% 427.3% Operating Cash Flow $84,730,000 $5,180,000 -93.9% Enterprise Value / Sales 2.0 1.4 -28.6% (Source - Seeking Alpha) A full comparison of the two companies' performance metrics may be viewed here. The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. MNDO's most recent GAAP Rule of 40 calculation was 22.3% as of Q2 2022, so the firm needs some improvement in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % -4.8% GAAP EBITDA % 27.1% Total 22.3% (Source - Seeking Alpha) Commentary On MIND C.T.I. In its last earnings announcement (Source - Seeking Alpha), covering Q2 2022's results, management noted the significant revenue decrease was in line with expectations, as the previous growth in its messaging segment in 2021 was 'temporary in nature.'

Aug 11

MIND C.T.I GAAP EPS of $0.06, revenue of $5.2M

MIND C.T.I press release (NASDAQ:MNDO): Q2 GAAP EPS of $0.06. Revenue of $5.2M (-27.8% Y/Y).

Jun 07
Many Would Be Envious Of MIND C.T.I's (NASDAQ:MNDO) Excellent Returns On Capital

Many Would Be Envious Of MIND C.T.I's (NASDAQ:MNDO) Excellent Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common...

Shareholder Returns

MNDOUS SoftwareUS Market
7D-3.6%-4.4%-5.2%
1Y-29.8%-35.3%-23.0%

Return vs Industry: MNDO exceeded the US Software industry which returned -35.3% over the past year.

Return vs Market: MNDO underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is MNDO's price volatile compared to industry and market?
MNDO volatility
MNDO Average Weekly Movement2.8%
Software Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: MNDO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MNDO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995214Eisinger Iancuhttps://mindcti.com

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.

MIND C.T.I. Ltd Fundamentals Summary

How do MIND C.T.I's earnings and revenue compare to its market cap?
MNDO fundamental statistics
Market CapUS$45.13m
Earnings (TTM)US$5.68m
Revenue (TTM)US$23.90m

8.0x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MNDO income statement (TTM)
RevenueUS$23.90m
Cost of RevenueUS$11.20m
Gross ProfitUS$12.69m
Other ExpensesUS$7.02m
EarningsUS$5.68m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 08, 2022

Earnings per share (EPS)0.28
Gross Margin53.12%
Net Profit Margin23.75%
Debt/Equity Ratio0%

How did MNDO perform over the long term?

See historical performance and comparison

Dividends

11.6%

Current Dividend Yield

92%

Payout Ratio