Quality Momentum

QM · rank #11 · 2026-07-20

ELG

XETRA · EUR · $3.35B (USD)

SignalBuy2.6strength 2.6 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+143.42%
ROE TTM
Return on equity, trailing 12 months.
+17.5%
Profit margin
Net profit margin, trailing 12 months.
+17.9%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$3.35B
Anchor (recent)
Close on 2026-06-19
$181.80
Anchor (far)
Close on 2025-06-20
$74.69

The AI research card

Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.

Summary

Elmos Semiconductor SE is a German specialist in automotive mixed-signal ICs serving comfort, safety, and electrification applications, with Q1 2026 sales of €152.5m (+20.2% YoY) and a 23.8% EBIT margin.

Rationale

The quality_momentum thesis is directly reinforced: momentum_12_1 of 1.43 reflects genuine fundamental re-acceleration (raised FY2026 guidance, double-digit growth return), while ROE of 17.5% and profit margin of 17.9% confirm durable profitability rather than cyclical noise.

Material risks

  • 1Competitive position is demand-driven rather than moat-protected — no disclosed sole-supplier positions or long-term order backlogs means a softening in automotive production or electrification spend could rapidly deflate both the momentum and quality signals simultaneously.
  • 2Insider share sales reported in May 2026 create ownership overhang and may signal insiders view current valuation as full, potentially capping near-term price momentum at the €3.3bn market cap level.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Proceed