MIPS AB (publ)
MIPS AB (publ) Fundamental Analysis
MIPS AB (publ) (MPZAF) shows strong financial fundamentals with a PE ratio of 92.96, profit margin of 22.55%, and ROE of 21.35%. The company generates $0.5B in annual revenue with strong year-over-year growth of 35.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MPZAF's fundamental strength across five key dimensions:
Efficiency Score
WeakMPZAF struggles to generate sufficient returns from assets.
Valuation Score
ModerateMPZAF shows balanced valuation metrics.
Growth Score
ModerateMPZAF shows steady but slowing expansion.
Financial Health Score
ExcellentMPZAF maintains a strong and stable balance sheet.
Profitability Score
ExcellentMPZAF achieves industry-leading margins.
Key Financial Metrics
Is MPZAF Expensive or Cheap?
P/E Ratio
MPZAF trades at 92.96 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MPZAF's PEG of -0.77 indicates potential undervaluation.
Price to Book
The market values MIPS AB (publ) at 19.81 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 69.02 times EBITDA. This signals the market has high growth expectations.
How Well Does MPZAF Make Money?
Net Profit Margin
For every $100 in sales, MIPS AB (publ) keeps $22.55 as profit after all expenses.
Operating Margin
Core operations generate 29.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.35 in profit for every $100 of shareholder equity.
ROA
MIPS AB (publ) generates $9.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MIPS AB (publ) generates strong operating cash flow of $146.72M, reflecting robust business health.
Free Cash Flow
MIPS AB (publ) generates strong free cash flow of $133.72M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.05 in free cash annually.
FCF Yield
MPZAF converts 1.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
92.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
19.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
20.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How MPZAF Stacks Against Its Sector Peers
| Metric | MPZAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 92.96 | 23.72 | Worse (Expensive) |
| ROE | 21.35% | 1091.00% | Weak |
| Net Margin | 22.55% | -629.00% (disorted) | Strong |
| Debt/Equity | 0.58 | 0.72 | Neutral |
| Current Ratio | 2.92 | 2.64 | Strong Liquidity |
| ROA | 9.16% | 1050.00% | Weak |
MPZAF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MIPS AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.20%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
58.74%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
114.50%
Industry Style: Cyclical, Growth, Discretionary
High Growth