MIND C.T.I. Ltd. Ordinary Shares (MNDO)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for small, understandable businesses selling at a discount to intrinsic value. MIND C.T.I. provides billing and customer-care software for telecom and messaging operators—sticky, mission-critical systems, though the company is tiny with 139 employees and a $21.6 million market cap at the 2026-10-13 close. In its latest reported quarter, the second quarter of 2026, revenue was $4.6 million and net income $775,000, a 16.81% net margin. FairStock's calculations show trailing P/E of 5.94, P/B of 0.79, EV/EBITDA of 5.84, and FCF yield of 14.3% on $3.1 million trailing free cash flow. Those are Graham-style cheapness numbers. The FairStock Graham Number is $2.06, implying a 53.88% margin of safety at the $0.95 close. The balance sheet looks conservative: debt-to-equity 0.03, and FairStock's Altman Z-Score is 2.83. FairStock's return metrics are adequate: ROE 14.38%, ROCE 6.46%. The 18.33% dividend yield is eye-catching, but with a small market cap and slow top-line movement, it may be hard to sustain. The supplied revenue-growth figure is 1.78%, while the supplied profit-growth figure is 77.14%, which I treat as a low-base clue rather than a durable trend. FairStock's Piotroski F-Score is 6/9, suggesting fair, not flawless, momentum. FairStock's PEG ratio of 0.08 looks cheap if growth persists, but one year does not make a trend. The moat, if any, comes from switching costs in billing systems, but the company is too small to have wide protection. The Lynch category is none because only zero years of filed results are available and three are needed. At this price, the market is pricing in stagnation or distrust. If cash flow holds and the dividend is covered, the shares could reward patience; if revenue stalls or the payout is cut, the discount may be deserved.

In plain English: MIND C.T.I. makes software that phone and messaging companies use to bill customers and manage accounts. The business is small but profitable, has little debt, and pays a very large dividend, while sales are growing only slowly. Based on the provided numbers, the shares look cheap compared with profits, cash generation, and net assets, but the tiny size and high payout make it riskier than the price alone suggests.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer