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MIPS AB
(MIPS)
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Rating:74Outperform
Price Target:
kr477.00
▲(17.55% Upside)
Action:Reiterated
Date:07/18/26
The score is driven primarily by strong financial performance (high profitability and solid cash generation) and a very bullish earnings update with exceptional growth and margin expansion. Offsetting factors are elevated valuation (high P/E, low yield), increased balance-sheet leverage, and technically overbought conditions that raise near-term pullback risk.
Positive Factors
Licensing Business Model
A per-unit licensing model ties revenue to partner unit volumes rather than capital-intensive manufacturing, creating scalable, high-margin revenue streams. This structure supports predictable royalty upside as OEM adoption grows, lowers capital needs, and aligns MIPS incentives with partner sell-through over the medium term.
Negative Factors
Rising Leverage
Material increase in debt reduces financial flexibility and raises interest and refinancing risk if growth or margins slip. Higher leverage constrains optionality for acquisitions or share returns and makes the company more sensitive to cyclical shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Licensing Business Model
A per-unit licensing model ties revenue to partner unit volumes rather than capital-intensive manufacturing, creating scalable, high-margin revenue streams. This structure supports predictable royalty upside as OEM adoption grows, lowers capital needs, and aligns MIPS incentives with partner sell-through over the medium term.
Read all positive factors
MIPS AB (MIPS) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr11.11B
Dividend Yield0.6%
Average Volume (3M)48.84K
Price to Earnings (P/E)67.1
Beta (1Y)1.15
Revenue Growth28.63%
EPS Growth18.57%
CountrySE
Employees124
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)6.25
Shares Outstanding26,491,121
10 Day Avg. Volume71,328
30 Day Avg. Volume48,837
Financial Highlights & Ratios
PEG Ratio-5.25
Price to Book (P/B)16.66
Price to Sales (P/S)17.56
P/FCF Ratio67.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr565.00Price Target Upside39.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)9.54
Revenue Forecast (FY)kr832.39M
MIPS AB Business Overview & Revenue Model
Company Description
MIPS AB (publ) engineers, manufactures, and distributes sophisticated helmet-based safety systems globally, with a presence spanning North America, Europe, Asia, Australia, and its home country, Sweden. The company's diverse product line includes ...
How the Company Makes Money
MIPS primarily makes money by licensing its Mips safety technology to helmet and protective-equipment manufacturers/brands. Under these arrangements, partner brands integrate the Mips system into specific helmet models and pay MIPS a fee that is t...
MIPS AB Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call presented strong quarter results with exceptional revenue growth (72% Q2), robust organic expansion (42%), broad-based regional and category momentum (notably sports, moto, and a sharp safety acceleration post‑Koroyd), and significant margin and cash-flow improvement. Key positives include successful Koroyd integration, improved penetration in core markets, and healthy operating cash flow. Notable headwinds are a Q3 legal settlement charge (~$3.25m plus closure costs), FX pressure (≈7% YTD), and the margin mix effect from Koroyd and uncertainty about achieving the >50% EBIT margin target for the full year. Overall, positives materially outweigh the setbacks.Positive Updates
Strong Top-Line Growth
Q2 net sales grew 72% year-over-year; organic growth was 42%. Year-to-date net sales up 53% with 35% organic growth.
Negative Updates
Legal Dispute Settlement Impacting Q3
Settlement of U.S. legal dispute signed July 2. Settlement amount $3.25 million will be expensed in Q3, plus additional legal/closure costs (management expects a few million more; market estimates referenced ~SEK 35 million total impact).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q2 net sales grew 72% year-over-year; organic growth was 42%. Year-to-date net sales up 53% with 35% organic growth.
Read all positive updates
Company Guidance
Guidance from the call reiterated a strong growth and profitability trajectory: Q2 net sales rose 72% (organic +42%) and year‑to‑date sales are +53% (organic +35%), with Q2 gross margin 74.1% (vs 74.2% LY) and adjusted EBIT up 98% to a 46.7% (≈47%) margin (H1 adjusted EBIT margin 41.4%); operating cash flow was SEK 62m in Q2 (SEK 80m H1), cash SEK 187m, dividend SEK 66m (SEK 2.5/sh), and revolving credit utilization SEK 300m. By business/region: Europe organic +48% in Q2, U.S. organic +32%, Asia Q2 +80% (from small base); sports +51% (organic +40%), moto +80% (organic +56%), safety net sales +604% (organic +80%) with Koroyd contributing ~30% of Q2 growth and SEK 33m in sales (~15% of group); safety target ~SEK 100m this year and Koroyd 2025 base ~SEK 120m with a ~15% target CAGR. Management reiterated a long‑term ambition to grow >30% annually and to reach an EBIT margin above 50% (but said 50% is unlikely for the full year), warned Q3 will include the U.S. legal settlement of $3.25m (≈SEK 35m) and noted comparators (~18–19%) when planning H2.MIPS AB Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 665.00M | 533.00M | 483.00M | 357.00M | 563.00M | 608.00M |
| Gross Profit | 486.00M | 391.00M | 350.00M | 253.00M | 386.00M | 445.00M |
| EBITDA | 244.00M | 175.00M | 209.00M | 88.00M | 242.00M | 340.00M |
| Net Income | 166.00M | 120.00M | 141.00M | 64.00M | 175.00M | 255.00M |
Balance Sheet | ||||||
| Total Assets | 1.36B | 1.31B | 739.00M | 738.00M | 767.00M | 756.00M |
| Cash, Cash Equivalents and Short-Term Investments | 187.00M | 214.00M | 382.00M | 408.00M | 533.00M | 450.00M |
| Total Debt | 331.00M | 327.00M | 12.00M | 14.00M | 17.00M | 7.00M |
| Total Liabilities | 741.00M | 745.00M | 98.00M | 81.00M | 141.00M | 179.00M |
| Stockholders Equity | 622.00M | 562.00M | 641.00M | 657.00M | 626.00M | 577.00M |
Cash Flow | ||||||
| Free Cash Flow | 165.00M | 138.00M | 132.00M | 2.00M | 215.00M | 267.00M |
| Operating Cash Flow | 173.00M | 148.00M | 142.00M | 11.00M | 236.00M | 277.00M |
| Investing Cash Flow | -425.00M | -429.00M | -10.00M | -89.00M | -22.00M | -11.00M |
| Financing Cash Flow | 192.00M | 124.00M | -162.00M | -42.00M | -136.00M | -95.00M |
MIPS AB Technical Analysis
Positive
405.80
Price Trends
288.44
Positive
269.59
Positive
287.46
Positive
Market Momentum
42.39
Negative
67.32
Neutral
58.89
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 405.8 is above the 20-day moving average (MA) of 352.60, above the 50-day MA of 288.44, and above the 200-day MA of 287.46, indicating a bullish trend. The MACD of 42.39 indicates Negative momentum. The RSI at 67.32 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | kr11.11B | 67.10 | 28.57% | 0.62% | 28.63% | 18.57% | |
74 Outperform | kr6.52B | 19.84 | 26.69% | 2.02% | 4.31% | 15.92% | |
72 Outperform | kr1.63B | 17.49 | 24.51% | 7.00% | 5.09% | 6.45% | |
67 Neutral | kr23.59B | 20.28 | 15.52% | 3.54% | 2.68% | 11.27% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | kr54.59M | -16.67 | -3.66% | ― | -11.44% | 73.71% | |
50 Neutral | kr4.92B | 64.16 | 1.82% | 5.98% | -0.11% | 5.51% |
* Consumer Cyclical Sector Average
SE:MIPS
MIPS AB
406.40
-1.86
-0.46%
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224.00
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364.00
-119.64
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7.70
-8.20
-51.57%
SE:RVRC
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18.38
42.71%
SE:BORG
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64.00
9.87
18.24%
MIPS AB Corporate Events
Mips AB Delivers Strong Q2 Growth and Resolves Patent Dispute
Jul 16, 2026
Mips AB reported a strong second quarter, with net sales surging 72% to SEK 232m and organic growth of 42%, underpinned by robust demand and improved profitability. Operating profit more than doubled, lifting the operating margin to 41.0%, while c...
Mips Schedules Q2 2026 Interim Report and Investor Call
Jul 7, 2026
Mips AB will publish its interim report for the second quarter of 2026 on 16 July at 7:30 a.m. CET, covering performance for the April–June period. Later that morning, at 11:00 a.m. CET, President and CEO Max Strandwitz and CFO Karin Rosenth...
Mips AB Names Marie Björklund as New CFO to Drive Growth Strategy
Jul 6, 2026
Mips AB has appointed experienced finance executive Marie Björklund as its new Chief Financial Officer, succeeding Karin Rosenthal, with Björklund set to join the group management no later than 11 January 2027. Coming from senior roles a...
Mips Settles U.S. Patent Dispute to Safeguard Growth and Customer Operations
Jul 2, 2026
Mips AB, a Swedish-listed leader in helmet safety technology, has built a strong market position around its proprietary impact protection systems used by major helmet brands. Through its Mips and Koroyd brands, the group focuses on science-based s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.