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	249.2
Change Percentage	-2.35%
Open	252
Previous Close	255.2
Market Cap ( Millions)	6602
Volume	62464
Year High	504
Year Low	239.4
M A 50	313.25
M A 200	365.25

FCF Yield	2.06%
Dividend Yield	2.61%
ROE	21.35%
Debt / Equity	61.03%
Net Debt / EBIDTA	80.63%
Price To Book	11.75
Price Earnings Ratio	55.01
Price To FCF	48.54
Price To sales	12.41
EV / EBITDA	42.07

2. Mips' Strong Q4 Earnings Driven by Organic Growth and Strategic Acquisition

Mips reported a robust fourth quarter with 18% organic growth, driven by strong performances across all categories, particularly in Europe where organic growth exceeded 30%. The company's gross margin stood at 72.9% in Q4 and 73.4% for the full year, while EBIT margin was 31.8% in Q4 and 29.2% for the full year. Excluding legal and transaction costs, EBIT margin was 39.8% in Q4 and 38.2% for the full year. Earnings per share (EPS) came in at 1.32, slightly below estimates of 1.49. Operating cash flow was SEK 52 million in Q4 and SEK 148 million for the full year.

Publication Date: Feb -20

                                    📋 Highlights
                                    Strong Q4 Organic Growth::
                                                Mips reported 18% organic growth in Q4, with Europe exceeding 30%, and full-year organic growth at 21%.
Acquisition of Koroyd::
                                                Acquired for EUR 40M (plus up to EUR 25M earn-out), expected to boost EPS and EBIT margins, with positive sales growth potential.
Margin Performance::
                                                Q4 gross margin at 72.9%, EBIT margin 31.8% (39.8% excluding costs); full-year EBIT 29.2% (38.2% excluding costs).
Category Growth Drivers::
                                                Sports, Moto, and Safety categories grew 17%, 32%, and 41% in Q4, with Safety segment outperforming.
Sustainability & Dividend::
                                                Ranked #1 in Carnegie’s sustainability rankings, proposed dividend of SEK 2.50 per share (55% of net earnings), and aims to increase recycled material use.

                                

Business Category Performance

Mips' three business categories - Sports, Moto, and Safety - all reported growth, with organic net sales growth of 17%, 32%, and 41% respectively in Q4. The company's acquisition of Koroyd is expected to strengthen its position in helmet safety and offer opportunities for product extensions. As noted by the company, "At World of Concrete in January, we drove the rollout of full-brim helmets, a significant volume area in the US, where Mips is being implemented."

Geographical Development

Europe was a significant growth driver for Mips, with 50% organic sales growth in 2025 and increased market share and penetration. The company expects continued growth in Europe, driven by regions such as Germany, France, and Switzerland. In contrast, China saw a significant contraction in Q4 due to a hesitant Chinese consumer, although Mips sees opportunities for growth in the Chinese market, particularly in winter sports.

Valuation and Outlook

With a P/E Ratio of 53.73 and an EV/EBITDA of 41.11, the market appears to have priced in significant growth expectations. Analysts estimate next year's revenue growth at 29.5%. The company's dividend yield stands at 2.67%, providing a relatively stable return. Mips' plans to invest in R&D and recruitment to support its growth plans, while maintaining an asset-light model, are expected to drive future growth.

Key Metrics

The company's return on equity (ROE) is 21.35%, indicating a strong return on shareholder equity. The net debt to EBITDA ratio is 0.81, suggesting a manageable level of debt. With a scalable business model and a strong pipeline, Mips is well-positioned for continued growth.

3. NewsRoom

Mips AB (FRA:7M1) Q4 2025 Earnings Call Highlights: Strong Organic Growth Amidst Market Challenges

Feb -18

Source:

European Stocks Estimated To Be Trading Below Fair Value In February 2026

Feb -11

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3 European Stocks Estimated To Be Trading At Up To 49.9% Discount

Jan -12

Source:

3 European Stocks Estimated To Be Up To 47% Below Intrinsic Value

Dec -11

Source:

Looking at the Changing Narrative for Mips After Analysts Trim Price Targets

Dec -07

Source:

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

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What Factors Are Shaping the Changing Narrative for Mips?

Nov -07

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

Tivoli

A-Score: 4.2/10

Value: 2.2

Growth: 5.6

Quality: 5.5

Yield: 0.6

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

Basic-Fit

A-Score: 4.1/10

Value: 5.0

Growth: 7.9

Quality: 2.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

Focusrite

A-Score: 3.8/10

Value: 6.7

Growth: 4.4

Quality: 5.7

Yield: 3.1

Momentum: 2.0

Volatility: 1.0

1-Year Total Return ->

Profoto

A-Score: 3.5/10

Value: 6.6

Growth: 2.1

Quality: 3.8

Yield: 8.8

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

The Gym Group

A-Score: 3.5/10

Value: 5.1

Growth: 6.6

Quality: 3.4

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

MIPS

A-Score: 3.4/10

Value: 0.0

Growth: 6.3

Quality: 9.0

Yield: 1.9

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

19.83%

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' Strong Q4 Earnings Driven by Organic Growth and Strategic Acquisition

Business Category Performance

Geographical Development

Valuation and Outlook

Key Metrics

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

249.2$

Current Price

249.2$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA