MIPS AB (MIPS) AI Stock Analysis

• Market Cap: $9.83B
• Dividend Yield: 1.77%
• Average Volume (3M): 48.65K
• Price to Earnings (P/E): 71.3
• Beta (1Y): 0.90
• 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: 41,645
• 30 Day Avg. Volume: 48,648
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 22.26
• Enterprise Value/Gross Profit: 30.44
• Enterprise Value/Ebitda: 65.75
• 1Y Price Target: $579.48
• Price Target Upside: 64.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: kr409.00 ▲(15.80% Upside)

MIPS AB's strong financial performance and positive earnings call sentiment are significant strengths, supported by robust growth and profitability. However, technical indicators suggest a bearish trend, and the high P/E ratio raises valuation concerns. Challenges in the U.S. market and legal costs also pose risks.

Positive Factors

Revenue Growth

The consistent organic revenue growth indicates strong demand for MIPS's safety technology and effective market penetration, supporting long-term business expansion.

Partnerships

Strategic partnerships like the one with Bullard enhance MIPS's market reach and product adoption, strengthening its competitive position and driving future growth.

Gross Margin Improvement

Improved gross margins reflect operational efficiency and pricing power, which can sustain profitability and support reinvestment into growth initiatives.

Negative Factors

Operating Margin Pressure

Declining EBIT margins due to increased costs and currency effects may impact profitability, challenging MIPS's ability to maintain its financial performance.

Tariff Impact

Tariffs affecting the U.S. market introduce uncertainty and could hinder sales growth, impacting MIPS's ability to expand in a key market.

Legal Costs

Rising legal costs increase operational expenses, potentially reducing net income and limiting resources available for growth and innovation.

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 licensing agreements with helmet manufacturers who incorporate the MIPS technology into their products. The company charges a licensing fee based on the sales of helmets that utilize its Brain Protection System, which creates a steady stream of income as demand for safer helmets grows in both sports and motorcycling markets. Additionally, MIPS may receive royalties from sales, which can vary depending on the manufacturer’s pricing and sales volume. Key partnerships with well-known helmet brands and ongoing innovation in safety technology further bolster MIPS's revenue, as these collaborations enhance the company's market presence and drive sales growth.

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.

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	517.00M	483.00M	357.00M	563.00M	608.00M	365.00M
Gross Profit	378.00M	350.00M	253.00M	406.00M	445.00M	266.00M
EBITDA	175.00M	209.00M	102.00M	242.00M	340.00M	178.00M
Net Income	140.00M	141.00M	64.00M	175.00M	255.00M	129.00M
Balance Sheet
Total Assets	594.00M	739.00M	738.00M	767.00M	756.00M	517.00M
Cash, Cash Equivalents and Short-Term Investments	244.00M	382.00M	408.00M	533.00M	450.00M	272.00M
Total Debt	9.00M	12.00M	14.00M	17.00M	7.00M	11.00M
Total Liabilities	91.00M	98.00M	81.00M	141.00M	179.00M	91.00M
Stockholders Equity	503.00M	641.00M	657.00M	626.00M	577.00M	426.00M
Cash Flow
Free Cash Flow	161.00M	132.00M	2.00M	215.00M	267.00M	101.00M
Operating Cash Flow	177.00M	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	-175.00M	-162.00M	-42.00M	-136.00M	-95.00M	-15.00M

MIPS AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 353.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 353.2 is above the 20-day moving average (MA) of 347.25, below the 50-day MA of 368.44, and below the 200-day MA of 413.29, indicating a neutral trend. The MACD of -1.74 indicates Negative momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 75.57 is Neutral, 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
BORG	―	€1.59B	18.71	25.24%	2.34%	10.32%	13.49%
MIPS	―	$9.83B	71.26	23.68%	1.77%	23.02%	32.69%
THULE	―	kr27.46B	26.01	14.62%	3.26%	8.93%	-12.56%
RVRC	―	€5.92B	21.18	23.71%	1.85%	6.44%	0.49%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOI.B	―	kr6.65B	92.46	1.42%	2.46%	-7.64%	-69.69%
USWE	―	kr116.33M	―	-17.09%	―	22.81%	36.26%

MIPS AB Corporate Events

MIPS AB Earnings Call: Strong Growth Amid Challenges

MIPS AB’s recent earnings call painted a picture of robust growth and strategic resilience, despite facing some headwinds. The company reported impressive organic growth and significant success in the European market, particularly within the Sports segment. However, challenges in the U.S. market, primarily due to tariffs and legal costs, have impacted profitability. Nevertheless, MIPS maintains a strong financial position and expresses optimism about achieving its long-term growth and profitability targets.

Mips AB Reports Strong Q3 Growth Amid Challenges

Mips AB is a Swedish company specializing in helmet-based safety, providing innovative safety systems to the global helmet industry. The company operates on an ingredient brand business model and collaborates with renowned institutions for research and development.

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.

The most recent analyst rating on (SE:MIPS) stock is a Buy with a SEK580.00 price target. To see the full list of analyst forecasts on MIPS AB stock, see the SE:MIPS Stock Forecast page.