MIPS AB (MIPS) AI Stock Analysis

• Market Cap: kr6.56B
• Dividend Yield: 1.85%
• Average Volume (3M): 48.84K
• Price to Earnings (P/E): 54.1
• Beta (1Y): 0.81
• Revenue Growth: 23.02%
• EPS Growth: 32.69%
• Country: SE
• Employees: 110
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 1.34
• Shares Outstanding: 26,491,121
• 10 Day Avg. Volume: 71,328
• 30 Day Avg. Volume: 48,837
• PEG Ratio: -5.25
• Price to Book (P/B): 16.66
• Price to Sales (P/S): 17.56
• P/FCF Ratio: 67.84
• 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: kr540.03
• Price Target Upside: 117.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr272.00 ▲(9.77% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by solid underlying financial performance (strong margins and improved growth) and constructive earnings-call commentary on momentum and profitability (excluding legal costs). These positives are materially offset by weak technicals (price below all key moving averages with negative momentum) and a demanding valuation (high P/E despite a moderate dividend yield).

Positive Factors

Patented Licensing Model

Mips's licensing model is capital-light and scalable, producing recurring royalties tied to partner volumes. Patented tech and partner integrations create structural commercial leverage, enabling margin expansion and broad market reach without heavy manufacturing capex over the medium term.

High Gross & Net Margins

Very strong gross margins reflect the premium, IP-driven nature of the product and licensing economics. Sustained margin levels provide durable operating profitability, supporting reinvestment and shareholder returns while cushioning earnings from normal demand swings.

Strong Free Cash Flow Conversion

Near-par FCF conversion indicates cash-realization of reported profits, giving management flexibility to fund growth, pay down debt, or support dividends. Strong cash dynamics are a durable source of financial resilience even if revenue fluctuates year-to-year.

Negative Factors

Step-up in Leverage

The sudden 2025 increase in leverage meaningfully raises financial risk versus prior years. Higher debt amplifies interest and refinancing exposure, reducing balance sheet flexibility at a time when cash flows and revenues have shown volatility, limiting strategic optionality.

Volatile Revenue Pattern

Historic swings in revenue undermine predictability of licensing royalties tied to partner volumes. Episodic declines (2023) and sharp rebounds make long-term planning and target pacing harder, increasing execution risk for margin and cash-flow targets over the medium term.

Tariff, Legal and FX Headwinds

Persistent tariffs, legal disputes and FX volatility create structural downside to reported margins and can depress U.S. and Asia volumes. Legal and trade-policy exposures are unpredictable and can impose recurring costs or limit market access, weighing on long-term earnings stability.

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 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

Strong profitability and generally good cash conversion support the score, reinforced by a sharp growth rebound in 2024–2025. However, results have been volatile year-to-year (notably the 2023 decline), and the 2025 step-up in leverage increases financial risk versus prior periods.

Income Statement

Profitability remains a clear strength, with consistently high gross margins (~71–73%) and solid net margins (about 18–42% historically; ~23% in 2025). Revenue growth rebounded strongly in 2024–2025 (about +35% and +76%), but the multi-year pattern is volatile (notably a sharp revenue decline in 2023 and lower profitability versus peak 2021–2022), which tempers the score.

Balance Sheet

The balance sheet was conservatively levered through 2020–2024 (very low debt relative to equity), but 2025 shows a step-change in leverage with debt-to-equity rising to ~0.61. Equity remains sizable (~562m) and the company is not over-levered on an absolute basis, but the sudden increase in debt meaningfully raises financial risk versus prior years.

Cash Flow

Cash generation is generally strong with free cash flow closely tracking net income (~0.93 in 2024–2025), supporting earnings quality. However, cash flows have shown material volatility—2023 saw a sharp drop in operating and free cash flow, and 2025 free cash flow declined (~-18%) despite higher revenue, indicating potential working-capital or investment swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	533.00M	483.00M	357.00M	563.00M	608.00M
Gross Profit	391.00M	350.00M	253.00M	406.00M	445.00M
EBITDA	155.00M	209.00M	88.00M	242.00M	340.00M
Net Income	120.00M	141.00M	64.00M	175.00M	255.00M
Balance Sheet
Total Assets	1.31B	739.00M	738.00M	767.00M	756.00M
Cash, Cash Equivalents and Short-Term Investments	214.00M	382.00M	408.00M	533.00M	450.00M
Total Debt	343.00M	12.00M	14.00M	17.00M	7.00M
Total Liabilities	745.00M	98.00M	81.00M	141.00M	179.00M
Stockholders Equity	562.00M	641.00M	657.00M	626.00M	577.00M
Cash Flow
Free Cash Flow	138.00M	132.00M	2.00M	215.00M	267.00M
Operating Cash Flow	148.00M	142.00M	11.00M	236.00M	277.00M
Investing Cash Flow	-429.00M	-10.00M	-89.00M	-22.00M	-11.00M
Financing Cash Flow	124.00M	-162.00M	-42.00M	-136.00M	-95.00M

MIPS AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 247.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MIPS, the sentiment is Negative. The current price of 247.8 is below the 20-day moving average (MA) of 270.10, below the 50-day MA of 308.11, and below the 200-day MA of 365.24, indicating a bearish trend. The MACD of -17.83 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 12.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:MIPS.

MIPS AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVRC	78 Outperform	kr7.08B	22.69	23.71%	2.02%	6.44%	0.49%
BORG	70 Outperform	kr1.55B	17.21	23.44%	4.95%	9.20%	11.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MIPS	61 Neutral	kr6.56B	54.09	23.68%	1.85%	23.02%	32.69%
THULE	60 Neutral	kr24.41B	21.75	14.62%	3.54%	8.93%	-12.56%
FOI.B	54 Neutral	kr6.41B	118.95	2.04%	6.24%	-2.98%	-30.48%
USWE	48 Neutral	kr74.93M	-6.28	-16.28%	―	24.34%	39.30%

MIPS AB Corporate Events

Mips grows sales and buys Koroyd but trims dividend on weaker margins

Mips AB reported modest top-line growth in 2025, with net sales rising 10% to SEK 533m and organic growth reaching 21%, driven by continued demand for its helmet safety systems across segments. However, profitability came under pressure as the EBIT margin fell to 29.2% from 36.1%, earnings per share declined to SEK 4.53, and the board proposed cutting the dividend to SEK 2.50 per share, corresponding to 55% of annual net profit.

In the fourth quarter, net sales inched up 2% to SEK 147m but organic growth was a stronger 18%, while adjusted operating profit and margins declined year on year. The December acquisition of Koroyd, with annual sales of about SEK 120m, marks a strategic expansion of Mips’ portfolio in impact protection technologies and is set to reinforce its market position, even as the company balances growth investments with more cautious shareholder payouts.

Mips’ cash flow from operating activities improved slightly to SEK 148m for the full year, underscoring solid underlying cash generation despite lower margins. With net debt at 0.5 times adjusted EBITDA, the balance sheet remains relatively conservative, giving the company room to integrate Koroyd and potentially pursue further growth initiatives in the global helmet safety market.

The most recent analyst rating on (SE:MIPS) stock is a Buy with a SEK315.00 price target. To see the full list of analyst forecasts on MIPS AB stock, see the SE:MIPS Stock Forecast page.

Mips to Present 2025 Year-End Results on 11 February 2026

Mips Group, a Stockholm-listed global safety technology provider whose Koroyd and Mips brands supply helmet and protective equipment manufacturers with advanced impact protection systems, will publish its year-end report for the 2025 financial year on 11 February 2026 at 7:30 a.m. CET. Management, including President and CEO Max Strandwitz and CFO Karin Rosenthal, will present the results later that morning via an English-language webcast and conference call, signaling continued efforts to engage investors and analysts and provide transparency around the company’s performance and strategic progress.

The most recent analyst rating on (SE:MIPS) stock is a Buy with a SEK307.00 price target. To see the full list of analyst forecasts on MIPS AB stock, see the SE:MIPS Stock Forecast page.

Mips Completes Acquisition of Impact Protection Specialist Koroyd

Mips AB has completed the acquisition of Monaco-based Koroyd SARL and SCP George TFE, a pioneer in advanced impact protection technology for head and body safety that complements Mips’ existing helmet safety systems. The deal advances Mips’ strategy to broaden its technology portfolio in impact protection, potentially strengthening its product offering to helmet manufacturers and reinforcing its position as a leading provider of safety solutions in the global head and body protection market.

The most recent analyst rating on (SE:MIPS) stock is a Buy with a SEK374.00 price target. To see the full list of analyst forecasts on MIPS AB stock, see the SE:MIPS Stock Forecast page.

Mips AB Acquires Koroyd to Enhance Helmet Safety Portfolio

Mips AB has announced the acquisition of Koroyd, a Monaco-based pioneer in advanced impact protection technology, for EUR 40 million. This strategic acquisition aims to strengthen Mips’ market position in helmet safety and expand into adjacent product areas, leveraging synergies in product development and marketing. The transaction is expected to positively impact Mips’ financial performance and is set to be completed by December 2025.

The most recent analyst rating on (SE:MIPS) stock is a Hold with a SEK331.00 price target. To see the full list of analyst forecasts on MIPS AB stock, see the SE:MIPS Stock Forecast page.