My favourite underlooked, underanalysed and undervalued small-cap

Three months ago, I shared a quick view on MIPS AB. Did not get any attention (no comments - and only one analyst coverage), which did not surprise me because it is a small-cap, technically industrial, niche European company. So not super exciting. But still, value investing is also about finding little gems like this. So don't mind playing a bit with the title - maybe more would read this post. Today, some elements have changed, and it has become (to me) even more interesting. **What does MIPS do ?** They are a decades-old company specialising in helmet security tech. I am a cyclist myself, and I heard about them from a salesman who pointed out the benefits of choosing helmets that integrate their technologies. He was pretty convincing (and I don't mess with security, so I got in). Recently, I decided to browse through cycling subreddits and see what people said about it. What I read is many testimonies of people having worn their helmets with that technology, going through accidents without any brain damage. Turns out, a solid helmet is not enough to save you from brain damage. So - reputation and usefulness are there. Because they do not manufacture helmets, but the technology that manufacturers must include to remain competitive in the safety market, then can maintain a high-margin, asset-light business model that scales with minimal incremental capital. **Quality business** When looking at their graph, it looks like they have been struggling quite a bit. And they have. Yet, they maintained over 70% gross margins - during one of their hardest year. They also managed to maintain a high FCF conversion and a net-debt/EBITDA of only 0.5 (despite acquisitions). What changed since my last post is their acquisition of Koyrod. Koroyd provides complementary impact absorption technology. This moves Mips from being a "single-solution" company to a "multi-solution safety platform." It adds a real plus in sales and gives them an extra option to dominate non-helmet safety gear. **Growth prospects** Besides the potential mentioned above, they have improved EU sales (the US is still a strong market, despite US-bike inventory being at a 10-year low, but also meaning it is bound to a tailwind). They aim to become a global safety standard across Moto, Industrial, and Sports. with revenue expectation exceeding 1.2bn SEK; Dividend returns to 8-10 SEK levels. today, we are around 530M SEK (58M dollars) This will probably start to show from 2027 on, 2026 being a "normalising phase" where it can trade both ways. **Management** Maybe typically northern European, I enjoy that. It is very direct, transparent, practical and analytical. The ceo even got some heat because he was too transparent at one point. They cut the dividend by 60% to fund the Koroyd acquisition and defend their IP. They prioritized Internal Rate of Return (IRR), they hired a COO specifically to help customers migrate supply chains away from tariff zones, turning a macro threat into a customer-retention tool. **Valuation** At 245 SEK, the stock is at a 6-year low. You are buying the company at 2019 prices, despite the company having a 2x larger strategic footprint (Koroyd + Safety). Forward P/E of 25.6x is actually kind of low for a business with 70%+ margins and over 20% organic growth. Historically, Mips has traded at 50x–80x P/E. As everything I am looking for, this is a long-term bet. Don't look at that company if you want to see strong return this year 2026. What is your opinion ? Caveats ? does this stock interest you if you wanted to get some diversification from AI/SaaS noise ?