MIPS AB (MIPS) AI Stock Analysis

• Market Cap: kr8.24B
• Dividend Yield: 2.09%
• Average Volume (3M): 38.40K
• Price to Earnings (P/E): 59.7
• Beta (1Y): 0.88
• Revenue Growth: 23.02%
• EPS Growth: 32.69%
• Country: SE
• Employees: 110
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 1.29
• Shares Outstanding: 26,491,121
• 10 Day Avg. Volume: 39,531
• 30 Day Avg. Volume: 38,402
• PEG Ratio: 0.75
• Price to Book (P/B): 19.44
• Price to Sales (P/S): 25.80
• P/FCF Ratio: 94.40
• 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: kr580.01
• Price Target Upside: 92.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: kr331.00 ▲(9.89% Upside)

MIPS AB's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust growth in Europe and a solid financial position. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. Challenges in the U.S. market and legal costs also weigh on the score.

Positive Factors

Strong European Market Growth

MIPS's robust growth in Europe demonstrates its strong market position and effective strategy, contributing to sustained revenue expansion in a key region.

Solid Financial Position

A strong balance sheet with high equity and substantial cash reserves provides MIPS with financial stability and flexibility for future investments.

High Profitability Margins

MIPS's high profitability margins indicate efficient operations and strong pricing power, supporting long-term financial health and shareholder returns.

Negative Factors

U.S. Market Challenges

Ongoing challenges in the U.S. market due to tariffs and economic conditions could hinder MIPS's growth prospects and market expansion in a significant region.

Legal Costs Impacting Profitability

High legal costs are reducing MIPS's profitability, potentially diverting resources from growth initiatives and affecting overall financial performance.

Decelerating Revenue Growth

Slowing revenue growth may indicate market saturation or increased competition, challenging MIPS's ability to maintain its growth trajectory.

MIPS AB Business Overview & Revenue Model

Company Description

MIPS AB (MIPS) is a Swedish technology company specializing in the development and commercialization of advanced helmet safety systems. The company operates primarily in the sports and motorcycle helmet markets, providing innovative solutions designed to reduce the risk of head injuries through its patented Multi-directional Impact Protection System (MIPS). MIPS's core products are integrated into helmets used by athletes in various sports, including cycling, skiing, and motorcycling, as well as in safety helmets for industrial applications.

How the Company Makes Money

MIPS generates revenue primarily through the licensing of its patented technology to helmet manufacturers. The company charges licensing fees based on the volume of helmets produced by its partners that incorporate MIPS technology. Additionally, MIPS benefits from partnerships with several leading helmet brands, which enhances its market presence and drives sales. The company may also derive income from consulting services and technical support for manufacturers looking to integrate their safety systems into new helmet designs. This strategic model allows MIPS to expand its reach in various markets while maintaining relatively low overhead costs associated with manufacturing.

MIPS AB Financial Statement Overview

Summary

MIPS AB exhibits strong financial health with robust profitability, a solid balance sheet, and stable cash flow generation. The company’s low leverage and high equity ratio provide a strong foundation for future growth. While there are some pressures on operating margins and free cash flow growth, the overall financial position remains strong, positioning the company well for continued success in the leisure industry.

Income Statement

MIPS AB demonstrates strong profitability with a high gross profit margin of 73.1% and a solid net profit margin of 27.1% in the TTM period. The company has shown impressive revenue growth of 38.8% in the TTM, indicating robust demand and market presence. However, the EBIT and EBITDA margins have slightly decreased compared to previous periods, suggesting some pressure on operating efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.018, indicating minimal leverage and financial risk. The return on equity is strong at 23.5%, reflecting efficient use of shareholder funds. The equity ratio stands at 84.7%, showcasing a strong capital structure with substantial equity backing.

Cash Flow

Cash flow performance is stable, with an operating cash flow to net income ratio of 2.08, indicating good cash generation relative to earnings. However, the free cash flow growth rate has declined by 9.6% in the TTM, which could signal potential challenges in maintaining cash flow levels. The free cash flow to net income ratio remains healthy at 0.91, suggesting effective conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	529.00M	483.00M	357.00M	563.00M	608.00M	365.00M
Gross Profit	388.00M	350.00M	253.00M	406.00M	445.00M	266.00M
EBITDA	175.00M	209.00M	88.00M	242.00M	340.00M	178.00M
Net Income	138.00M	141.00M	64.00M	175.00M	255.00M	129.00M
Balance Sheet
Total Assets	622.00M	739.00M	738.00M	767.00M	756.00M	517.00M
Cash, Cash Equivalents and Short-Term Investments	280.00M	382.00M	408.00M	533.00M	450.00M	272.00M
Total Debt	7.00M	12.00M	14.00M	17.00M	7.00M	11.00M
Total Liabilities	86.00M	98.00M	81.00M	141.00M	179.00M	91.00M
Stockholders Equity	536.00M	641.00M	657.00M	626.00M	577.00M	426.00M
Cash Flow
Free Cash Flow	168.00M	132.00M	2.00M	215.00M	267.00M	101.00M
Operating Cash Flow	182.00M	142.00M	11.00M	236.00M	277.00M	116.00M
Investing Cash Flow	-18.00M	-10.00M	-89.00M	-22.00M	-11.00M	-15.00M
Financing Cash Flow	-176.00M	-162.00M	-42.00M	-136.00M	-95.00M	-15.00M

MIPS AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 301.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MIPS, the sentiment is Neutral. The current price of 301.2 is below the 20-day moving average (MA) of 304.90, below the 50-day MA of 325.85, and below the 200-day MA of 382.93, indicating a neutral trend. The MACD of -4.61 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 81.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:MIPS.

MIPS AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BORG	69 Neutral	€1.58B	18.68	23.44%	5.03%	9.20%	11.72%
RVRC	69 Neutral	€6.93B	23.31	23.71%	2.13%	6.44%	0.49%
MIPS	66 Neutral	kr8.24B	59.70	23.68%	2.09%	23.02%	32.69%
THULE	65 Neutral	kr26.16B	24.79	14.62%	3.42%	8.93%	-12.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOI.B	59 Neutral	kr6.65B	77.39	2.04%	6.26%	-2.98%	-30.48%
USWE	45 Neutral	€102.05M	―	-16.28%	―	24.34%	39.30%

MIPS AB Corporate Events

Mips AB to Present Q3 2025 Financial Results

Mips AB announced the release of its Interim Report for the third quarter of 2025, scheduled for October 22. The results will be presented by the company’s President and CEO, Max Strandwitz, and CFO, Karin Rosenthal, during a conference call on the same day. This announcement is part of Mips’ ongoing efforts to maintain transparency with its stakeholders and provide insights into its financial performance.