MIPS AB (MIPS) AI Stock Analysis

• Market Cap: $11.86B
• Dividend Yield: 1.45%
• Average Volume (3M): 48.38K
• Price to Earnings (P/E): 80.2
• Beta (1Y): 0.95
• Revenue Growth: 45.89%
• EPS Growth: 137.33%
• Country: SE
• Employees: 110
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Leisure
• EPS (TTM): 0.71
• Shares Outstanding: 26,493,273
• 10 Day Avg. Volume: 40,488
• 30 Day Avg. Volume: 48,383
• PEG Ratio: -2.05
• Price to Book (P/B): 17.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $579.98
• Price Target Upside: 26.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: kr516.00 ▲(12.61%Upside)

MIPS AB demonstrates strong financial health and positive earnings call highlights, bolstered by significant organic growth. However, high valuation concerns and overbought technical indicators warrant caution. The potential short-term challenges from tariff uncertainties and legal costs further moderate the overall score.

Positive Factors

Market Opportunities

The reaffirmation of MIPS's financial targets suggests that market opportunities remain promising and aligned with initial expectations.

Sales Growth

MIPS achieved a notable increase in net sales, growing by 40% year-over-year and 42% organically, driven by strong performance across all segments.

Negative Factors

Legal Costs

MIPS's earnings were negatively impacted due to legal costs amounting to SEK 9 million related to a lawsuit involving a US customer.

Trade Tariffs

Management anticipates that trade tariffs could create short-term uncertainty, potentially leading to postponed sales.

MIPS AB Business Overview & Revenue Model

Company Description

MIPS AB (publ) manufactures and sells helmet-based safety systems in North America, Europe, Sweden, Asia, and Australia. It offers sports helmets for biking, skiing and snowboarding, equestrian, team sports, climbing, and white water rafting; and road motorcycle and motocross helmets. The company also provides safety helmets for industrial use, and legal enforcement and armed forces. MIPS AB (publ) was incorporated in 2001 and is headquartered in Täby, Sweden.

How the Company Makes Money

MIPS AB generates revenue primarily through licensing agreements with helmet manufacturers who integrate MIPS technology into their products. The company charges these manufacturers a fee for the use of its patented technology, forming the bulk of its revenue stream. Additionally, MIPS may earn income from direct sales of its products, though its business model is predominantly centered around partnerships and collaborations with helmet brands across various sectors. MIPS's ability to maintain and grow its earnings is significantly influenced by its ongoing innovation in safety technology, expansion into new helmet markets, and the establishment of strategic alliances with leading manufacturers.

MIPS AB Financial Statement Overview

Summary

MIPS AB exhibits strong financial health with significant profitability, a stable balance sheet, and robust cash flows. The company shows consistent revenue and cash flow growth, though slight pressure on net margins suggests potential areas for improvement in cost management or revenue enhancement.

Income Statement

MIPS AB shows strong profitability with a gross profit margin of 72.82% and an EBIT margin of 36.12% for TTM. The revenue growth rate of 6.62% from the previous annual period indicates steady growth. However, the net profit margin at 28.74% and a slight decline from previous high profit periods suggest some pressure on net income.

Balance Sheet

The company's balance sheet is robust, highlighted by a very low debt-to-equity ratio of 0.02 and a strong equity ratio of 87.20% for TTM. Return on equity is solid at 22.87%, indicating effective use of equity to generate profits. The high equity figures demonstrate financial stability and low leverage risks.

Cash Flow

Cash flow performance is strong with a notable 34.85% growth in free cash flow for TTM. The operating cash flow to net income ratio of 1.28 indicates efficient cash conversion. Free cash flow to net income ratio of 1.20 supports this efficiency, reflecting solid cash-generating capabilities relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	515.00M	483.00M	357.00M	563.00M	608.00M	365.00M
Gross Profit	375.00M	350.00M	253.00M	406.00M	445.00M	266.00M
EBITDA	191.00M	209.00M	102.00M	242.00M	340.00M	178.00M
Net Income	148.00M	141.00M	64.00M	175.00M	255.00M	129.00M
Balance Sheet
Total Assets	742.00M	739.00M	738.00M	767.00M	756.00M	517.00M
Cash, Cash Equivalents and Short-Term Investments	408.00M	382.00M	408.00M	533.00M	450.00M	272.00M
Total Debt	10.00M	12.00M	14.00M	17.00M	7.00M	11.00M
Total Liabilities	95.00M	98.00M	81.00M	141.00M	179.00M	91.00M
Stockholders Equity	647.00M	641.00M	657.00M	626.00M	577.00M	426.00M
Cash Flow
Free Cash Flow	178.00M	132.00M	2.00M	215.00M	267.00M	101.00M
Operating Cash Flow	189.00M	142.00M	11.00M	236.00M	277.00M	116.00M
Investing Cash Flow	-11.00M	-10.00M	-89.00M	-22.00M	-11.00M	-15.00M
Financing Cash Flow	-164.00M	-162.00M	-42.00M	-136.00M	-95.00M	-15.00M

MIPS AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 458.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MIPS, the sentiment is Positive. The current price of 458.2 is above the 20-day moving average (MA) of 445.46, above the 50-day MA of 406.51, and above the 200-day MA of 456.96, indicating a bullish trend. The MACD of 10.74 indicates Positive momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 68.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:MIPS.

MIPS AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MIPS	74 Outperform	$11.86B	80.15	21.85%	1.45%	45.89%	137.33%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
0R3W		kr30.02B	27.24	14.34%	28.77%	―	―
FNXTF		$756.20M	84.16	2.00%	4.87%	―	―
9RN		€60.59M	―	-9.23%	―	―	―
3AJ		€1.08B	21.56	13.24%	1.81%	―	―
NWG0		€1.51B	18.70	12.85%	2.73%	―	―

MIPS AB Corporate Events

Mips AB Annual General Meeting Resolutions and Strategic Authorizations

The Annual General Meeting of Mips AB resulted in several key resolutions, including the approval of financial statements and the discharge of the Board and CEO from liability for 2024. A dividend of SEK 6.50 per share was declared, with payments scheduled for mid-May 2025. The meeting also saw the re-election of board members and the authorization for the Board to issue new shares and repurchase up to 10% of its own shares, reflecting strategic flexibility in capital management.