<div id="readability-page-1"><div id="blog-content"><p><img height="334" src="https://imageproxy.pbkrs.com/https://images.unsplash.com/photo-1612178991541-b48cc8e92a4d/query-YXV0bz1mb3JtYXQmZml0PWNyb3AmaXhpZD1NWHd4TWpBM2ZEQjhNSHh3YUc5MGJ5MXdZV2RsZkh4OGZHVnVmREI4Zkh3PSZpeGxpYj1yYi0xLjIuMSZxPTgwJnc9MTAwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="500" original-src="https://imageproxy.pbkrs.com/https://images.unsplash.com/photo-1612178991541-b48cc8e92a4d/query-YXV0bz1mb3JtYXQmZml0PWNyb3AmaXhpZD1NWHd4TWpBM2ZEQjhNSHh3YUc5MGJ5MXdZV2RsZkh4OGZHVnVmREI4Zkh3PSZpeGxpYj1yYi0xLjIuMSZxPTgwJnc9MTAwMA"/></p><p><em>Image Source: Unsplash</em></p><p><br/>As part of our ongoing series at <em>The Acquirer’s Multiple</em>, each week we spotlight a stock from our Stock Screeners that might be a deeply undervalued gem hiding in plain sight. This week’s spotlight is <strong>MIND C.T.I. Ltd (MNDO)</strong> — a small Israeli software company that provides billing, customer care, and enterprise resource management solutions primarily to telecom and enterprise customers around the world.</p><p><br/><strong>Business Overview</strong></p><p>MIND develops, licenses, and supports convergent billing and customer care software that helps telecom operators and enterprises manage complex billing, rating, and customer relationships. Its modular suite covers real-time billing, mediation, analytics, and revenue management, giving clients flexibility and scalability without heavy customization costs.</p><p>With over two decades of operating history and long-term customer relationships across more than 40 countries, MNDO generates recurring, high-margin revenue streams supported by multi-year service contracts and maintenance renewals. The company also maintains a debt-free balance sheet and a disciplined dividend policy.</p><p><br/><strong>What Is IV/P (Intrinsic Value to Price)?</strong></p><p>IV/P tells you whether a stock offers more intrinsic value than the price you’re paying for it. The ratio blends earnings power, reinvestment efficiency, and capital-return policy to estimate a conservative measure of worth.</p><ul><li><strong>IV/P &gt; 1 → Undervalued</strong></li><li><strong>IV/P &lt; 1 → Overvalued</strong></li></ul><p>MNDO’s <strong>IV/P = 2.10</strong>, meaning its intrinsic value is estimated to be roughly <strong>110 % higher</strong> than its current market price — a strong signal of potential undervaluation. </p><p><br/><strong>Supporting Metrics</strong></p><table><thead><tr><th>Metric</th><th>Value</th></tr></thead><tbody><tr><td><strong>Market Cap</strong></td><td>≈ US $ 21.6 M</td></tr><tr><td><strong>Enterprise Value</strong></td><td>≈ US $ 11 M</td></tr><tr><td><strong>Free Cash Flow (TTM)</strong></td><td>≈ US $ 2.85 M</td></tr><tr><td><strong>FCF Yield</strong></td><td>≈ 13 %</td></tr><tr><td><strong>Acquirer’s Multiple</strong></td><td>3.67</td></tr></tbody></table><p><br/>MIND’s strong free-cash-flow generation relative to its small market cap highlights its deep-value characteristics. An Acquirer’s Multiple below 4 suggests the market is pricing the company as if its cash flows will decline permanently — yet cash generation has remained consistent for several years.</p><p><br/><strong>Revenue &amp; Profitability</strong></p><table><thead><tr><th>Metric</th><th>TTM</th></tr></thead><tbody><tr><td><strong>Revenue</strong></td><td>US $ 20.2 M</td></tr><tr><td><strong>Operating Income</strong></td><td>US $ 2.7 M</td></tr><tr><td><strong>Operating Margin</strong></td><td>≈ 13 %</td></tr><tr><td><strong>Net Income</strong></td><td>US $ 3.1 M</td></tr><tr><td><strong>Net Margin</strong></td><td>≈ 15 %</td></tr><tr><td><strong>Diluted EPS (TTM)</strong></td><td>US $ 0.15</td></tr></tbody></table><p>MIND’s steady top-line and double-digit operating margins underscore disciplined expense management and recurring license renewals. Despite its small size, profitability has remained positive across market cycles — a testament to conservative management and sticky enterprise clients.</p><p><br/><strong>Balance Sheet Strength</strong></p><table><thead><tr><th>Item</th><th>Value</th></tr></thead><tbody><tr><td><strong>Cash &amp; Equivalents</strong></td><td>US $ 15.8 M</td></tr><tr><td><strong>Total Debt</strong></td><td>US $ 0.83 M</td></tr><tr><td><strong>Net Cash</strong></td><td>≈ US $ 15 M</td></tr><tr><td><strong>Shareholders’ Equity</strong></td><td>≈ US $ 24 M</td></tr></tbody></table><p>MIND operates with substantial net cash and zero leverage, providing both stability and optionality for future dividends or acquisitions. With working capital of roughly US $ 15.6 M, liquidity risk is negligible.</p><p><br/><strong>Capital Returns</strong></p><table><thead><tr><th>Metric</th><th>Value</th></tr></thead><tbody><tr><td><strong>Dividend Yield (TTM)</strong></td><td>≈ 8–9 %</td></tr><tr><td><strong>Dividends Paid (TTM)</strong></td><td>US $ 4.5 M</td></tr><tr><td><strong>Free Cash Flow (TTM)</strong></td><td>US $ 2.85 M</td></tr></tbody></table><p>The company has consistently paid generous annual dividends funded by accumulated cash reserves, returning most free cash flow to shareholders. Its low reinvestment needs make this policy sustainable so long as operations remain stable.</p><p><br/><strong>Why MIND Might Be Undervalued</strong></p><p>Micro-cap foreign software stocks often trade at deep discounts due to limited liquidity and minimal analyst coverage. Yet MNDO combines clean financials, steady free cash flow, a debt-free balance sheet, and high shareholder payouts. Its IV/P of 2.10 and AM of 3.67 imply the market is valuing each dollar of operating earnings far below intrinsic worth.</p><p><br/><strong>Conclusion</strong></p><p>With an IV/P of 2.10, an Acquirer’s Multiple of 3.67, and a free-cash-flow yield of about 13 %, MIND C.T.I. Ltd (MNDO) stands out as a disciplined, cash-rich micro-cap compounder trading at deep-value levels. For patient investors seeking steady dividends and downside protection backed by net-cash reserves, MNDO may represent a rare case where a small software business behaves like a durable, income-generating asset.</p><hr/><p><em>More By This Author:</em></p><p>Energy And Financials Lead This Week’s Deep Value Screen <br/>Meta Platforms Q3 2025: AI Expansion Drives Strong Growth Amid Record Investment<br/>Westlake Chemical Partners: Deep Value, 8% Yield, And A Fee-Based Cash Flow Powerhouse <br/></p></div></div>

MNDO

<p>MIND C.T.I. Ltd (MNDO), an Israeli software company, is highlighted as a deeply undervalued stock. It provides billing and customer care solutions, generating high-margin revenue with a debt-free balance sheet. The company's intrinsic value to price (IV/P) ratio is 2.10, indicating significant undervaluation. With a market cap of $21.6M, strong free cash flow, and consistent dividends, MNDO is seen as a cash-rich micro-cap stock offering potential for steady dividends and downside protection.</p>

MIND C.T.I. Ltd - Cash-Rich Micro-Cap Software Stock Trading At Deep Value