Mips (OM:MIPS) Margin Compression Challenges High P/E Growth Narrative Heading Into Q1 2026

Mips (OM:MIPS) Q1 2026: Setting the Scene

Mips (OM:MIPS) has opened Q1 2026 reporting season with recent quarterly figures that put hard numbers around its revenue and EPS profile, giving investors a clear read on how the business is currently performing. Over the past few reported quarters, the company has seen revenue move from 123 million SEK in Q3 2024 to 144 million SEK in Q4 2024 and then to 147 million SEK in Q4 2025, while basic EPS shifted from 1.36 SEK to 2.00 SEK and then to 1.32 SEK over the same periods. With trailing 12 month EPS at 4.53 SEK, the latest results arrive against a backdrop of forecast revenue and earnings growth and a net margin that has eased from prior levels, keeping profitability quality and resilience firmly in focus.

See our full analysis for Mips.

With the headline numbers on the table, the next step is to see how these results line up with the most widely discussed narratives around Mips, highlighting where the data supports the stories investors follow and where it challenges them.

See what the community is saying about Mips

Margins Step Down From 29.2% To 22.5%

• Over the last year, net margin moved from 29.2% to 22.5%, while trailing 12 month net income was SEK 120 million on SEK 533 million of revenue. The company is still converting a meaningful share of sales into profit, but at a lower level than before.
• Consensus narrative expects margins to rise to 37.6% in three years, yet the recent margin at 22.5% sits well below that target, which creates a gap investors should be aware of:
  • Analysts are assuming revenue will grow around 31.6% per year, but the historical data in the last five years shows trailing earnings declining on average by 18% per year, so the margin expansion story is starting from a weaker base.
  • With current earnings described as having high quality in the analysis, the key question for this consensus view is whether that quality can support both higher growth and a recovery from today’s lower margin level at the same time.

P/E Of 64.3x Puts Pressure On Growth Story

• The stock is trading on a P/E of 64.3x, compared with 19.7x for the European Leisure industry and 61.1x for peers. Investors are therefore paying a higher multiple than the wider group while five year trailing earnings have declined at an 18% annual rate.
• Bulls argue that strong growth can justify this, pointing to forecast earnings growth of about 34.2% per year and revenue growth of 22.2% per year:
  • The current share price of SEK 291.20 sits below the DCF fair value estimate of SEK 682.44, which bullish investors view as support for upside even with the high P/E multiple.
  • At the same time, the lower recent net margin of 22.5% compared with 29.2% a year earlier gives bears concrete data to question how easily the company can grow into that premium valuation.

Bulls point to 22.2% forecast revenue growth and DCF upside as reasons the 64.3x P/E could still be justified, while the recent margin drop keeps the debate lively for anyone tracking the optimistic case for Mips. 🐂 Mips Bull Case

Revenue And EPS Trends Versus Bull And Bear Cases

• On a quarterly view, revenue in 2025 moved from SEK 116 million in Q1 to SEK 147 million in Q4, while basic EPS ranged between SEK 0.72 and SEK 1.32 over those quarters. Trailing 12 month EPS at Q4 2025 was SEK 4.53 compared with SEK 5.32 a year earlier, so the top line has scaled up while EPS over the trailing period is lower than a year ago.
• Bears highlight that five year trailing earnings have fallen about 18% per year and worry that this pattern could continue even if revenue grows:
  • Bearish narratives assume earnings could still grow to SEK 462.3 million by 2029, yet the historical data in this dataset captures a decline in trailing earnings over five years, so past performance does not line up cleanly with those future expectations.
  • The consensus analyst price target of SEK 492.00 sits above the current share price of SEK 291.20, which both bulls and bears will compare against the multi year earnings decline when deciding how much weight to give to those forward looking scenarios.

Skeptics point out that earnings have trended lower over five years even as revenue increased, which is central to the more cautious case on Mips. 🐻 Mips Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Mips on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both bullish and cautious arguments laid out, the real question is where you land on Mips after looking at the numbers yourself. To take a closer look at the reward side of the story, check the 2 key rewards

See What Else Is Out There

Mips combines a high P/E and lower net margins with five year trailing earnings that have trended down even as revenue moved higher.

If this mix of premium pricing and softer earnings momentum leaves you cautious, it is worth checking companies screened as 236 high quality undervalued stocks while you reassess your options.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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