Mips went into its Q3 2026 print with a premium 60.4x P/E and a long running reputation as a high quality compounder, yet the stock has drifted over the past week with a 7 day return that declined about 4% into last night’s SEK390 close. The fresh quarter tells a different story. Net sales in the period reached SEK215 million and adjusted profitability was strong, even as reported earnings per share landed at 1.47 SEK after legal settlement costs. The expectation gap now sits squarely on margins and on what investors are really willing to pay for this helmet safety champion.
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Q3 2026 Earnings Summary
- Revenue (Q3 2026 vs. Q3 2025): SEK215 million vs. SEK135 million (up about 59%).
- Net Income, Excl. Extra Items (Q3 2026 vs. Q3 2025): SEK39 million vs. SEK34 million (up about 14%).
- Basic EPS (Q3 2026 vs. Q3 2025): SEK1.47 vs. SEK1.28 (up about 15%).
- Adjusted EBIT Margin (Q3 2026 vs. Q3 2025): around 43% to 45% vs. last year in the low 40% range (indicating strong adjusted profitability, with some reported impact from legal settlement costs).
Ask Charlie what Koroyd changes for Mips’ long‑term story.
Premium helmet thesis meets early execution tests
The bullish story around Mips hinges on converting awareness and premium positioning into sustained earnings power, even after legal noise. The key ambition is clear.
"While rising safety awareness and regulation in bike and industrial helmets support broader adoption of Mips and Quin technologies, the fact that helmets are often a low priority product for large safety companies means Mips equipped models can be down prioritised in their portfolios."
Q3 shows that concern has not stopped progress. Sports, Moto and Safety all contributed, with organic growth above 30% and adjusted EBIT margin above 40%. That combination suggests premium helmet demand and mix are, so far, offsetting portfolio headwinds at larger partners.
Mips risk narrative: concentration, supply chain and legal drag
The bear story argues that regional reliance and operational friction could blunt that same earnings power.
"Heavy dependence on Europe for growth, with Europe now around 40% of sales and driving recent volume momentum, means any longer term slowdown in European consumer demand for sports and Moto helmets could hit the main growth engine and weigh on revenue and EBIT margin."
Q3 still leans on strong European bike and Moto orders, while the U.S. premium bike market is described as cautious. Legal cash outflow was real, with SEK32 million of settlement and SEK56 million legal spend year to date. Gross margin eased year on year as Koroyd’s lower margin profile and mix shifts weighed, so concentration and execution risks are visible, even in a robust quarter.
The price and this Narrative do not agree. → Uncover what this Narrative says Mips is actually worth.
Hunt For Mispriced Earnings Power
Mips shows how solid operations can coexist with a demanding valuation and legal uncertainty. The real opportunity is studying stocks that could be undervalued before expectations change.
- Company 1 - 35% below our estimate - scales shared banking platforms that cut unit costs and guide customers toward higher fee services.
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Those are three of them. See the full list of 190 companies trading below our fair value estimates →
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