Quality Momentum

QM · rank #2 · 2026-07-20

KGH

GPW · PLN · $16.00B (USD)

SignalStrong Buy5.3strength 5.3 / 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.
+198.92%
ROE TTM
Return on equity, trailing 12 months.
+20.1%
Profit margin
Net profit margin, trailing 12 months.
+17.5%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$16.00B
Anchor (recent)
Close on 2026-06-19
$363.93
Anchor (far)
Close on 2025-06-20
$121.75

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

KGHM Polska Miedz is Poland's integrated copper and silver mining-smelting giant with core Polish assets and international exposure via Sierra Gorda, generating revenues across the full metals value chain.

Rationale

The quality_momentum signal is strongly reinforced — Q1 2026 EPS of 17.65 PLN crushed consensus of 12.40 PLN, ROE of ~20% reflects genuine earnings power, and 12-month price momentum of 1.99 aligns with a metals price cycle that is actively lifting fundamentals, not merely sentiment.

Material risks

  • 1KGHM is a near-pure price-taker on copper, silver, and gold with no long-term fixed-price contracts or backlog, so a sharp metals price reversal would collapse the earnings base that justifies both the quality and momentum signals simultaneously.
  • 2Elevated copper prices mechanically increase Poland's minerals extraction tax burden, compressing free cash flow relative to reported EBITDA and potentially causing the market to re-rate earnings quality downward if FCF disappoints despite strong headline profits.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Error