MIPS AB (publ) (MIPS.ST) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on MIPS

MIPS AB (publ) stock performance has been negatively driven by the increasing competition from AI-driven technology, which may impact its growth prospects. The company's reliance on legacy products and its limited exposure to emerging technologies may make it vulnerable to market shifts. Furthermore, the current market uncertainty, as highlighted by the European Central Bank's rate cut, may lead to a decrease in investor confidence in the company's stock.

1.c. Company Highlights

Last Price	308.6
Change Percentage	1.11%
Open	305.6
Previous Close	305.2
Market Cap ( Millions)	8175
Volume	24106
Year High	612.5
Year Low	291
M A 50	328.48
M A 200	385.06

FCF Yield	2.06%
Dividend Yield	2.11%
ROE	23.71%
Debt / Equity	1.31%
Net Debt / EBIDTA	-156.00%
Price To Book	15.25
Price Earnings Ratio	59.24
Price To FCF	48.66
Price To sales	15.45
EV / EBITDA	45.16

2. Mips' Q3 2025 Earnings: Strong Growth Amidst Challenges

Mips reported a 19% organic growth in the third quarter of 2025, with net sales increasing 10% and 19% organically, adjusted for FX. The company's gross profit increased 11% with a strong gross margin of 74.2%. However, EBIT was down 7% to SEK 44 million, due to legal costs and ForEx headwinds. The actual EPS came out at '1.29', missing estimates at '2.51'. The company's operating cash flow was a positive SEK 41 million. Year-to-date, net sales increased 14% and 22% organically, with a gross margin of 73.6% and an EBIT margin of 28%.

Publication Date: Nov -20

                                    📋 Highlights
                                    Q3 Organic Growth::
                                                Mips achieved 19% organic growth (net sales +10%, +19% adjusted for FX) in Q3 2025.
Sports Segment Surge::
                                                8% net sales growth driven by 98% growth in Europe, with Moto up 28%.
Strong Gross Margins::
                                                Gross profit grew 11% with a robust margin of 74.2% in Q3.
EBIT Margin Resilience::
                                                EBIT down 7% to SEK 44M due to legal and Forex costs, but 42.1% margin excluding these.
Cash Position::
                                                SEK 280M in cash and equivalents, maintaining long-term 50% EBIT margin target despite challenges.

                                

Segment Performance

The Sports segment saw 8% net sales growth, driven by 98% growth in Europe, while Moto had 28% net sales growth. The Safety segment grew 26%, but was impacted by uncertainty from tariffs and cost increases. Mips' CEO, Max Strandwitz, noted that while the US bike market is expected to remain soft for 1-2 years, Europe's e-bike market is driving growth. The company is confident in its ability to navigate the market and drive growth, particularly in Europe.

Gross Margin and Operating Expenses

The improvement in gross margin was attributed to a positive mix effect, driven by increased sales of premium solutions and volume growth. Strandwitz highlighted that Mips has a strong balance sheet, which allows the company to invest and accelerate in other areas. The company's EBIT margin was 42.1% excluding legal costs and ForEx headwinds.

Valuation and Outlook

Mips maintains its long-term outlook and financial targets, expecting to return to a 50% EBIT margin. The company's strong cash position with SEK 280 million in cash and cash equivalents provides a solid foundation for future growth. With a P/E Ratio of 56.5 and an EV/EBITDA of 43.86, the market is pricing in high expectations for the company's growth. Analysts estimate next year's revenue growth at 33.8%, indicating a positive outlook for the company.

Growth Drivers and Initiatives

Mips expects the European market to continue growing, driven by increased awareness and regulatory support. The company is exploring new technologies, such as Quin, which provides data on accidents, and RLS, a technology that releases the outer shell during impact. Mips is also increasing awareness and education among consumers, with a new event concept launched at MXGP competition in Belgium. The company's strong position and high brand awareness provide a solid foundation for future growth.

3. NewsRoom

What Could Shift the Story for Mips After Recent Analyst Revisions and Market Trends

Nov -23

Source:

3 European Stocks Estimated To Be Up To 49.6% Below Intrinsic Value

Nov -12

Source:

What Factors Are Shaping the Changing Narrative for Mips?

Nov -07

Source:

Mips AB (FRA:7M1) Q3 2025 Earnings Call Highlights: Strong European Growth and Resilient ...

Oct -24

Source:

Mips (OM:MIPS) Margin Improves to 27%, Reinforcing Bull Case on Profitability

Oct -23

Source:

European Stocks Priced Below Estimated Value In October 2025

Oct -06

Source:

3 European Stocks Estimated To Be Trading At A Discount Of Up To 29.9%

Aug -18

Source:

InPost And 2 Additional European Value Stocks Trading Below Estimated Worth

Jun -11

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.43%)

6. Segments

Component Kit

Expected Growth: 8.5%

Component Kit from MIPS AB (publ) achieves 8.5% growth driven by increasing demand for helmet-based safety solutions, expansion into new markets, and strategic partnerships. Additionally, advancements in technology, such as improved sensor integration and AI-powered analytics, enhance product offerings and drive sales.

MIPS Technology

Expected Growth: 7.4%

MIPS Technology's 7.4% growth is driven by increasing demand for AI-enabled edge computing, growing adoption of 5G and IoT devices, and rising need for efficient processing in autonomous vehicles, smart homes, and industrial automation. Additionally, the company's strategic partnerships and licensing agreements with industry leaders have contributed to its growth momentum.

7. Detailed Products

Brain Injury Analysis Solution

A software solution that helps analyze and diagnose brain injuries, such as concussions, using advanced algorithms and machine learning techniques.

Orthopedic Injury Analysis Solution

A software solution that helps analyze and diagnose orthopedic injuries, such as fractures and ligament tears, using advanced algorithms and machine learning techniques.

Neurological Function Analysis Solution

A software solution that helps analyze and diagnose neurological functions, such as cognitive and motor skills, using advanced algorithms and machine learning techniques.

Sports Injury Prevention Solution

A software solution that helps prevent sports-related injuries by analyzing athlete data and providing personalized recommendations for injury prevention.

Research and Development Services

Custom research and development services for companies and organizations in the healthcare and sports industries.

8. MIPS AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

MIPS AB (publ) operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing competition from other medical technology companies.

Bargaining Power Of Customers

MIPS AB (publ) has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

MIPS AB (publ) relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The medical technology industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise. This makes it difficult for new entrants to compete with MIPS AB (publ).

Intensity Of Rivalry

The medical technology industry is highly competitive, with several established players competing for market share. MIPS AB (publ) faces intense competition from companies with similar products and technologies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	2.09%
Debt Cost	9.38%
Equity Weight	97.91%
Equity Cost	9.74%
WACC	9.73%
Leverage	2.13%

11. Quality Control: MIPS AB (publ) passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Profoto

A-Score: 4.5/10

Value: 9.0

Growth: 2.1

Quality: 6.9

Yield: 8.8

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Tivoli

A-Score: 4.3/10

Value: 2.4

Growth: 5.7

Quality: 5.4

Yield: 0.6

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

Basic-Fit

A-Score: 4.1/10

Value: 5.3

Growth: 7.8

Quality: 2.8

Yield: 0.0

Momentum: 5.5

Volatility: 3.0

1-Year Total Return ->

The Gym Group

A-Score: 3.8/10

Value: 5.5

Growth: 6.6

Quality: 3.4

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

MIPS

A-Score: 3.3/10

Value: 0.0

Growth: 6.3

Quality: 9.0

Yield: 1.2

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

Focusrite

A-Score: 3.2/10

Value: 6.1

Growth: 3.1

Quality: 4.5

Yield: 3.1

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

21.24%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.73%

MIPS AB (publ) - SE0009216278

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MIPS

1.c. Company Highlights

Expensive

Weak Momentum

Better Quality

Earnings Miss

Revenues Miss

Earnings Beats

More Volatile

Revenues Beats

Strong Momentum

Lower Growth

Stable Momentum

2. Mips' Q3 2025 Earnings: Strong Growth Amidst Challenges

Segment Performance

Gross Margin and Operating Expenses

Valuation and Outlook

Growth Drivers and Initiatives

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.43%)

6. Segments

Component Kit

Expected Growth: 8.5%

MIPS Technology

Expected Growth: 7.4%

7. Detailed Products

Brain Injury Analysis Solution

Orthopedic Injury Analysis Solution

Neurological Function Analysis Solution

Sports Injury Prevention Solution

Research and Development Services

8. MIPS AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: MIPS AB (publ) passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

308.6$

Current Price

308.6$

Potential

0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA