MIPS AB (MIPS) AI Stock Analysis

• Market Cap: kr5.67B
• Dividend Yield: 1.85%
• Average Volume (3M): 48.84K
• Price to Earnings (P/E): 78.0
• Beta (1Y): 0.86
• 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: kr540.00
• Price Target Upside: 117.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 9.34
• Revenue Forecast (FY): kr795.36M

• Rating: 59 Neutral
• Price Target: kr250.00 ▲(0.89% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is primarily supported by strong underlying profitability and generally solid cash conversion, but it is meaningfully reduced by weak technicals (below major moving averages with negative MACD) and an expensive valuation (P/E ~78). Added risk comes from the sharp rise in leverage in 2025 and the company’s historical volatility in revenue and cash flow.

Positive Factors

High Profitability

Consistently high gross margins (~71–73%) and a solid net margin (~23% in 2025) reflect MIPS’s ability to extract value from its IP and component sales. These margins support durable cash generation, reinvestment capacity and resilience to cost pressures, underpinning long-term profitability.

Scalable Licensing Model

MIPS’s business is primarily licensing technology and selling per‑unit components to helmet makers, an asset-light, IP-driven model. This structure scales with partner adoption, creates recurring royalty and per‑unit revenue, and offers margin leverage as volumes rise over time.

Strong Cash Conversion

Free cash flow closely tracking net income (~0.93 in 2024–2025) indicates solid cash conversion and earnings quality. Reliable FCF supports dividends, R&D and partner investments, enhancing financial flexibility and reducing dependence on external funding during normal cycles.

Negative Factors

Revenue & Cash Flow Volatility

Revenue and cash flows have shown material volatility—marked by a sharp revenue decline in 2023 and a ~18% free cash flow drop in 2025 despite higher revenue. This lumpy performance hampers forecasting, complicates capital allocation and raises execution risk for medium-term planning.

Rising Leverage

The balance sheet shifted from very low historical leverage to a meaningful step-up in 2025 (debt-to-equity ~0.61). Higher leverage increases interest and refinancing risk, reduces strategic flexibility for M&A or partner funding, and lessens the cushion against industry slowdowns.

Dependence on Partner Adoption

MIPS’s revenue depends on third-party helmet makers adopting its system and producing units. Because it does not primarily sell finished helmets, the company is exposed to OEM product cycles and partner decisions, which can produce lumpy royalties and limit direct control over market demand.

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 makes money primarily by licensing its technology and brand to helmet companies and by selling MIPS-equipped components that are integrated into partners’ helmets. Revenue is typically generated when partner helmet brands/manufacturers produce and sell helmets that incorporate MIPS technology: MIPS earns fees/royalties and/or per-unit payments linked to the number of MIPS-equipped helmets produced or sold (the exact contract structure can vary by partner). A second core stream comes from supplying the physical MIPS system (e.g., low-friction layer/liner assemblies and related integration parts) to manufacturers, where MIPS is paid per unit supplied. The company’s earnings are therefore driven by (1) the number of helmet models and units adopting MIPS across categories, (2) pricing per unit/royalty rates, (3) mix toward higher-priced categories or models with MIPS integration, and (4) expansion of long-term relationships with major helmet brands and contract manufacturers. In addition, the MIPS brand can increase consumer pull-through, encouraging helmet brands to adopt and pay for MIPS to differentiate their products; this brand-driven demand supports continued partner adoption. Specific named partnerships, contract terms, and category-by-category revenue splits are null (not provided here).

MIPS AB Financial Statement Overview

Summary

Strong profitability (high gross margins ~71–73% and solid net margin ~23% in 2025) and generally good cash conversion support the score. It is held back by historically volatile revenue/cash flow (notably the 2023 decline and 2025 FCF down ~18% despite higher revenue) and a meaningful 2025 leverage step-up (debt-to-equity ~0.61).

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	327.00M	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 above the 20-day moving average (MA) of 238.63, below the 50-day MA of 268.58, and below the 200-day MA of 349.90, indicating a bearish trend. The MACD of -12.12 indicates Positive momentum. The RSI at 31.08 is Neutral, neither overbought nor oversold. The STOCH value of 4.92 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	kr7.26B	12.87	25.41%	2.02%	6.44%	0.49%
BORG	70 Outperform	kr1.62B	17.16	23.44%	4.95%	9.20%	11.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THULE	60 Neutral	kr21.18B	23.21	14.62%	3.54%	8.93%	-12.56%
MIPS	59 Neutral	kr5.67B	78.02	23.68%	1.85%	23.02%	32.69%
FOI.B	54 Neutral	kr5.93B	-24.11	2.04%	6.24%	-2.98%	-30.48%
USWE	48 Neutral	kr69.58M	57.97	-17.87%	―	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.