Mips AB (publ) (MIPS.ST) fair value

ACCE thesis

MIPS AB makes MIPS, a thin low-friction liner that sits inside bicycle, ski and motorcycle helmets to reduce rotational impact forces in crashes, and it licenses the technology to helmet manufacturers who pay per unit. That licensing model is the moat: the liner is designed into helmet platforms, which makes switching costly for makers and gives MIPS a royalty stream that scales with their volumes. Revenue grew 71.9% over the last reported period, and the 73.0% gross margin and 46.6% operating margin show how little of each royalty krona is absorbed by cost of sales. The valuation is full, with a trailing P/E of 63.8 and a forward P/E of 45.6, so the case rests on whether that growth persists beyond the current helmet-cycle upswing. Worth a deeper look to test how durable the design-win pipeline is and how much of the recent growth came from one-off volume rather than new platforms.