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MIPS AB (SE:MIPS)
:MIPS
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MIPS AB
(OTC:MIPS)
68Neutral
Positive Factors
Market Opportunities
The reaffirmation of MIPS's financial targets suggests that market opportunities are still as promising as initially communicated.
Sales Growth
MIPS experienced a significant sales growth of 40% year-over-year, driven by normalized inventory levels and continued demand in the sports segment.
Negative Factors
Legal Costs
MIPS's EBIT was negatively impacted by legal costs amounting to SEK 9m due to a lawsuit involving a US customer.
Trade Tariffs
Management anticipates that trade tariffs could create short-term uncertainty, which may lead to postponed sales.
MIPS AB (MIPS) vs. S&P 500 (SPY)
Market Cap
$9.71B
Dividend Yield1.48%
Average Volume (3M)75.42K
Price to Earnings (P/E)65.5
Beta (1Y)0.95
Revenue Growth45.89%
EPS Growth137.33%
CountrySE
Employees110
SectorConsumer Cyclical
Sector Strength61
IndustryLeisure
Share Statistics
EPS (TTM)0.72
Shares Outstanding26,493,273
10 Day Avg. Volume96,494
30 Day Avg. Volume75,422
Financial Highlights & Ratios
PEG Ratio13.07
Price to Book (P/B)15.20
Price to Sales (P/S)0.00
P/FCF Ratio55.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$579.99Price Target Upside57.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
MIPS AB Business Overview & Revenue Model
Company DescriptionMIPS AB (MIPS) is a Swedish company specializing in helmet-based safety and brain protection systems. The company operates primarily in the sports, cycling, motorcycle, and construction helmet sectors, offering its patented Multi-directional Impact Protection System (MIPS) technology. This innovative system is designed to reduce rotational motion transferred to the brain from angled impacts to the head, thereby enhancing helmet safety.
How the Company Makes MoneyMIPS AB generates revenue primarily through licensing agreements with helmet manufacturers who integrate MIPS technology into their products. The company charges these manufacturers a fee for the use of its patented technology, forming the bulk of its revenue stream. Additionally, MIPS may earn income from direct sales of its products, though its business model is predominantly centered around partnerships and collaborations with helmet brands across various sectors. MIPS's ability to maintain and grow its earnings is significantly influenced by its ongoing innovation in safety technology, expansion into new helmet markets, and the establishment of strategic alliances with leading manufacturers.
MIPS AB Financial Statement Overview
Summary
MIPS AB demonstrates strong financial health with robust profitability, a stable balance sheet, and solid cash flows. The company exhibits consistent revenue and cash flow growth, although slight pressure on net margins highlights potential areas for improvement.Income Statement
MIPS AB shows strong profitability with a gross profit margin of 72.82% and an EBIT margin of 36.12% for TTM. The revenue growth rate of 6.62% from the previous annual period indicates steady growth. However, the net profit margin at 28.74% and a slight decline from previous high profit periods suggest some pressure on net income.78
Positive
Balance Sheet
The company's balance sheet is robust, highlighted by a very low debt-to-equity ratio of 0.02 and a strong equity ratio of 87.20% for TTM. Return on equity is solid at 22.87%, indicating effective use of equity to generate profits. The high equity figures demonstrate financial stability and low leverage risks.85
Very Positive
Cash Flow
Cash flow performance is strong with a notable 34.85% growth in free cash flow for TTM. The operating cash flow to net income ratio of 1.28 indicates efficient cash conversion. Free cash flow to net income ratio of 1.20 supports this efficiency, reflecting solid cash-generating capabilities relative to net income.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 515.00M | 483.00M | 357.00M | 563.00M | 608.00M | 365.00M | Gross Profit |
| 375.00M | 350.00M | 253.00M | 406.00M | 445.00M | 266.00M | EBIT |
| 186.00M | 174.00M | 70.00M | 229.00M | 326.00M | 167.00M | EBITDA |
| 191.00M | 209.00M | 102.00M | 242.00M | 340.00M | 178.00M | Net Income Common Stockholders |
| 148.00M | 141.00M | 64.00M | 175.00M | 255.00M | 129.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 408.00M | 382.00M | 408.00M | 533.00M | 450.00M | 272.00M | Total Assets |
| 742.00M | 739.00M | 738.00M | 767.00M | 756.00M | 517.00M | Total Debt |
| 10.00M | 12.00M | 14.00M | 17.00M | 7.00M | 11.00M | Net Debt |
| -398.00M | -370.00M | -211.00M | -135.00M | -82.00M | -80.00M | Total Liabilities |
| 95.00M | 98.00M | 81.00M | 141.00M | 179.00M | 91.00M | Stockholders Equity |
| 647.00M | 641.00M | 657.00M | 626.00M | 577.00M | 426.00M |
| Cash Flow | Free Cash Flow | ||||
| 178.00M | 132.00M | 2.00M | 215.00M | 267.00M | 101.00M | Operating Cash Flow |
| 189.00M | 142.00M | 11.00M | 236.00M | 277.00M | 116.00M | Investing Cash Flow |
| -11.00M | -10.00M | -89.00M | -22.00M | -11.00M | -15.00M | Financing Cash Flow |
| -164.00M | -162.00M | -42.00M | -136.00M | -95.00M | -15.00M |
MIPS AB Technical Analysis
Negative
367.40
Price Trends
385.71
Negative
437.46
Negative
472.74
Negative
Market Momentum
-5.32
Negative
51.69
Neutral
82.70
Negative
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 367.4 is above the 20-day moving average (MA) of 348.75, below the 50-day MA of 385.71, and below the 200-day MA of 472.74, indicating a neutral trend. The MACD of -5.32 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 82.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:MIPS.
MIPS AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | kr13.35B | 24.03 | 14.36% | 1.58% | 7.17% | 12.16% | |
72 Outperform | kr15.48B | 17.13 | 12.85% | 2.83% | 3.68% | -11.21% | |
68 Neutral | $9.71B | 65.48 | 21.85% | 1.48% | 45.89% | 137.33% | |
62 Neutral | kr7.80B | 85.72 | 2.00% | 2.56% | -6.37% | -72.36% | |
61 Neutral | $6.68B | 11.75 | 3.01% | 3.94% | 2.61% | -21.96% | |
60 Neutral | kr25.75B | 23.29 | 14.34% | 3.70% | 4.90% | -4.12% | |
47 Neutral | kr473.66M | ― | -9.23% | ― | -18.61% | -290.93% |
* Consumer Cyclical Sector Average
Performance Comparison
SE:MIPS
MIPS AB
367.40
-24.24
-6.19%
SE:THULE
Thule Group AB
238.80
-72.52
-23.29%
SE:FOI.B
Fenix Outdoor International AG
585.00
-92.65
-13.67%
SE:BOAT
Nimbus Group AB
14.45
-10.15
-41.26%
SE:NEWA.B
New Wave Group AB Class B
116.70
16.26
16.19%
SE:SKIS.B
SkiStar AB Class B
170.30
15.56
10.05%
MIPS AB Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 3.01%|
Next Earnings Date:Jul 16, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with significant organic growth and improved financial metrics across all categories and geographies. However, uncertainties due to tariff implementations and ongoing legal costs pose short-term challenges.Q1-2025 Updates
Positive Updates
Strong Organic Growth
Mips reported a 42% organic growth in Q1 2025, with a gross profit increase of 46% and a gross margin of 72.1%, driven by strong net sales across all categories.
Category Performance
All three categories (Sports, Moto, and Safety) experienced strong growth: Sports with 40% net sales growth, Moto with 32% growth, and Safety with a record-breaking 60% growth in the quarter.
Improved Financial Metrics
EBIT increased by 78% to SEK24 million, and the EBIT margin improved by 4.5 percentage points to 20.9%. Operating cash flow was SEK 36 million, a significant improvement from a negative cash flow last year.
Positive Geographic Performance
Strong sales in Europe and good growth in the US market despite cautious consumer spending. European markets are improving with high growth reported.
Negative Updates
Impact of Tariffs
Uncertainty in the US market due to rapid tariff implementations, affecting customer pricing strategies and causing potential short-term demand swings.
Legal Costs
Mips incurred SEK9 million in legal costs related to a customer’s IP dispute, impacting operating expenses. These costs are expected to continue in the short term.
US Market Uncertainty
Cautious consumer spending in the US, with uncertainties around the impact of tariffs on pricing and competitive positioning.
Company Guidance
During the Q1 2025 Mips Interim Report call, CEO Max Strandwitz and CFO Karin Rosenthal highlighted several key metrics. Mips achieved a 42% organic growth in net sales, with significant performances across all three categories: sports, moto, and safety. Sports net sales grew by 40%, moto by 32%, and safety reached a record with 60% growth. The gross margin improved to 72.1% from 69.4% the previous year, driven by a 46% increase in gross profit. Operating expenses were impacted by SEK 9 million in legal costs due to an IP-related dispute. The EBIT increased by 78% to SEK 24 million, with an EBIT margin of 20.9%. Operating cash flow was reported at SEK 36 million. The company anticipates near-term sales uncertainty due to tariff implications, but remains optimistic about its long-term strategy and financial targets.MIPS AB Corporate Events
Mips AB Annual General Meeting Resolutions and Strategic Authorizations
May 7, 2025
The Annual General Meeting of Mips AB resulted in several key resolutions, including the approval of financial statements and the discharge of the Board and CEO from liability for 2024. A dividend of SEK 6.50 per share was declared, with payments scheduled for mid-May 2025. The meeting also saw the re-election of board members and the authorization for the Board to issue new shares and repurchase up to 10% of its own shares, reflecting strategic flexibility in capital management.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.