| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 14.50 | -95 |
| Intrinsic value (DCF) | 176.53 | -36 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 17.70 | -94 |
Mips AB (publ) is a Swedish innovator in helmet-based safety systems, specializing in advanced protection technologies for sports, industrial, and military applications. Headquartered in Täby, Sweden, MIPS operates globally, serving markets in North America, Europe, Asia, and Australia. The company's patented Multi-directional Impact Protection System (MIPS) is integrated into helmets for biking, skiing, snowboarding, equestrian sports, team sports, climbing, and white-water rafting, as well as road motorcycle and motocross helmets. MIPS also caters to industrial safety needs and law enforcement with its cutting-edge helmet solutions. Since its founding in 2001, MIPS has established itself as a leader in helmet safety technology, leveraging biomechanical research to reduce rotational motion during impacts, thereby minimizing brain injury risks. The company's strong R&D focus and strategic partnerships with leading helmet manufacturers reinforce its position in the consumer cyclical sector, particularly within the leisure and safety equipment industries.
Mips AB presents an attractive investment opportunity due to its niche leadership in helmet safety technology, strong revenue growth (SEK 483 million in the latest fiscal year), and robust profitability (net income of SEK 141 million). The company's high beta (1.644) suggests volatility but also potential for above-market returns, particularly as demand for advanced safety gear grows in sports and industrial sectors. MIPS benefits from recurring licensing revenue, high margins, and a strong balance sheet with SEK 382 million in cash and minimal debt (SEK 12 million). However, risks include dependence on helmet manufacturers for adoption, competition from alternative safety technologies, and cyclical exposure to consumer discretionary spending. The dividend yield (SEK 6.5 per share) adds appeal for income-focused investors.
Mips AB holds a unique competitive advantage through its patented MIPS technology, which addresses rotational motion—a key contributor to brain injuries—setting it apart from traditional helmet safety standards. The company's licensing model allows it to scale efficiently without heavy manufacturing overhead, partnering with leading helmet brands globally. MIPS's strong IP portfolio and biomechanical research expertise create high barriers to entry for competitors. However, its reliance on third-party manufacturers for product integration poses a risk if partners develop in-house alternatives. The company competes in a fragmented market where brand reputation and technological differentiation are critical. While MIPS dominates in rotational impact protection, competitors may focus on other safety aspects (e.g., lightweight materials, aerodynamics). The company’s expansion into industrial and military applications diversifies its revenue streams but exposes it to regulatory and procurement complexities. Its Swedish heritage lends credibility in safety-centric European markets, but penetration in price-sensitive regions remains a challenge.