In this equity report, analyst Tim Möller takes a deep-dive into the company MIPS AB. MIPS is a Swedish company that develops solutions against rotational injuries that they sell to companies in the helmet industry, with customers that cover a broad range of niches within the sports, motorcycle, and safety industry. Our analyst, Tim Möller estimates the company to steadily increase their helmet unit sales with a CAGR of 31,2% 2020-2023 and to continue to improve their EBIT margin by 10 percentage points thanks to their scalable business model.

Investment highlights:

  • Pick and shovel play with a market share of 3,8% expected to increase to 10,6% thanks to their strong patent portfolio and increased safety awareness among end customers.
  • Scalable solutions that can be integrated into a broad range of helmet models coupled with a strong capital structure is expected to contribute to lower OPEX-to-sales and a net income CAGR of 39% for the next four years.

To get the analyst’s full view, please see the report below: