OM:MIPS

Stock Analysis Report

Executive Summary

MIPS AB (publ) manufactures and sells helmets in Sweden, North America, rest of Europe, Asia, and Australia.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.

Share Price & News

How has MIPS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MIPS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.2%

MIPS

1.7%

SE Leisure

0.07%

SE Market


1 Year Return

75.1%

MIPS

15.3%

SE Leisure

21.9%

SE Market

Return vs Industry: MIPS exceeded the Swedish Leisure industry which returned 15.3% over the past year.

Return vs Market: MIPS exceeded the Swedish Market which returned 21.9% over the past year.


Shareholder returns

MIPSIndustryMarket
7 Day-8.2%1.7%0.07%
30 Day12.1%-0.6%3.7%
90 Day34.8%10.2%10.0%
1 Year77.8%75.1%19.4%15.3%26.8%21.9%
3 Yearn/a84.8%61.4%40.1%18.9%
5 Yearn/a128.5%95.8%46.5%15.4%

Price Volatility Vs. Market

How volatile is MIPS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MIPS undervalued compared to its fair value and its price relative to the market?

71.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MIPS (SEK268.5) is trading above our estimate of fair value (SEK204.62)

Significantly Below Fair Value: MIPS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MIPS is poor value based on its PE Ratio (80.1x) compared to the Leisure industry average (19.1x).

PE vs Market: MIPS is poor value based on its PE Ratio (80.1x) compared to the Swedish market (20x).


Price to Earnings Growth Ratio

PEG Ratio: MIPS is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: MIPS is overvalued based on its PB Ratio (22.8x) compared to the SE Leisure industry average (2.6x).


Next Steps

Future Growth

How is MIPS forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIPS's forecast earnings growth (29.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: MIPS's earnings (29.9% per year) are forecast to grow faster than the Swedish market (8.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MIPS's revenue (27.1% per year) is forecast to grow faster than the Swedish market (4.7% per year).

High Growth Revenue: MIPS's revenue (27.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MIPS's Return on Equity is forecast to be very high in 3 years time (43.9%).


Next Steps

Past Performance

How has MIPS performed over the past 5 years?

50.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIPS has a high level of non-cash earnings.

Growing Profit Margin: MIPS's current net profit margins (31.7%) are higher than last year (29.3%).


Past Earnings Growth Analysis

Earnings Trend: MIPS has become profitable over the past 5 years, growing earnings by 50.6% per year.

Accelerating Growth: MIPS's earnings growth over the past year (50.4%) is below its 5-year average (50.6% per year).

Earnings vs Industry: MIPS earnings growth over the past year (50.4%) exceeded the Leisure industry -5.6%.


Return on Equity

High ROE: MIPS's Return on Equity (28.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MIPS's financial position?


Financial Position Analysis

Short Term Liabilities: MIPS's short term assets (SEK282.5M) exceed its short term liabilities (SEK43.2M).

Long Term Liabilities: MIPS's short term assets (SEK282.5M) exceed its long term liabilities (SEK1.5M).


Debt to Equity History and Analysis

Debt Level: MIPS is debt free.

Reducing Debt: MIPS has no debt compared to 5 years ago when its debt to equity ratio was 3.7%.

Debt Coverage: MIPS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MIPS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MIPS has a low level of unsold assets or inventory.

Debt Coverage by Assets: MIPS's debt is not covered by short term assets (assets are -40.5x debt).


Next Steps

Dividend

What is MIPS's current dividend yield, its reliability and sustainability?

1.24%

Current Dividend Yield


Upcoming Dividend Payment

Purchase MIPS before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.6%markettop25%4.2%industryaverage2.6%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: MIPS's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: MIPS's dividend (1.12%) is low compared to the top 25% of dividend payers in the Swedish market (4.25%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MIPS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MIPS's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.5%), MIPS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MIPS's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Max Strandwitz (44yo)

0.8yrs

Tenure

0

Mr. Max Strandwitz has been Chief Executive Officer of MIPS AB (publ) since May 10, 2019 and also serves as its President. Mr. Strandwitz served as Chief Financial Officer of Operations at Cloetta AB and F ...


Leadership Team

NamePositionTenureCompensationOwnership
Johan Thiel
0.8yrskr3.04m1.17% SEK71.6m
Max Strandwitz
CEO & President0.8yrsno data0.28% SEK16.9m
Shuyi Isaksson
Head of Operations4.1yrsno datano data
Peter Halldin
Chief Science Officer12.1yrsno data1.5% SEK91.3m
Boel Sundvall
Head of Investor Relations4.1yrsno datano data
Josefin Ytterborn
Head of Marketing2.6yrsno datano data
Johan Sauer
Head of Sales2.1yrsno datano data
Marcus Seyffarth
Head of Product Development1.1yrsno datano data

2.3yrs

Average Tenure

45yo

Average Age

Experienced Management: MIPS's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pär Arvidsson
Independent Director4.1yrskr227.00k0.26% SEK15.9m
Jenny Rosberg
Independent Director2.1yrskr130.00kno data
Magnus Welander
Chairman of the Board0.8yrskr197.00kno data
Pernilla Wiberg
Independent Director4.1yrskr167.00kno data
Jonas Rahmn
Independent Director10.1yrskr178.00kno data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Board: MIPS's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MIPS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MIPS AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MIPS AB (publ)
  • Ticker: MIPS
  • Exchange: OM
  • Founded: 2001
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: kr6.097b
  • Shares outstanding: 25.30m
  • Website: https://www.mipscorp.com

Number of Employees


Location

  • MIPS AB (publ)
  • Källtorpsvägen 2
  • Täby
  • Stockholm County
  • 183 71
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0RNQLSE (London Stock Exchange)YesOrdinary SharesGBSEKMar 2017
MIPSOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKMar 2017
MPZA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2017
7M1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2017
MIPSSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKMar 2017

Biography

MIPS AB (publ) manufactures and sells helmets in Sweden, North America, rest of Europe, Asia, and Australia. It offers MIPS brain protection system for helmet solutions in the consumer market, bicycle, skiing and snowboard, motorcycle and motocross, equestrian, team sport, car racing, baseball, climbing, snowmobile, wakeboard/kiteboard, white-water rafting, canoeing, and horse riding helmets; and in the commercial market, including military, law enforcement, and search and rescue helmets. The company was founded in 2001 and is headquartered in Täby, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:32
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.