Quality Momentum

QM · rank #4 · 2026-07-20

NDX1

XETRA · EUR · $11.06B (USD)

SignalStrong Buy4.0strength 4.0 / 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.
+184.90%
ROE TTM
Return on equity, trailing 12 months.
+27.5%
Profit margin
Net profit margin, trailing 12 months.
+4.2%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$11.06B
Anchor (recent)
Close on 2026-06-19
$47.72
Anchor (far)
Close on 2025-06-20
$16.75

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

Nordex SE is a German onshore wind turbine manufacturer with a ~€17 billion combined order and service backlog, growing installations across Europe and emerging markets, and an increasingly profitable long-term service segment.

Rationale

The momentum_12_1 of 1.85 reflects genuine fundamental re-rating — EBITDA margins nearly doubling YoY to 8.2%, net income surging from ~€8M to ~€54M, and H1 2026 order intake up 9.6% — giving the quality-momentum signal real earnings-revision fuel rather than pure sentiment drift.

Material risks

  • 1Q1 2026 project order intake declined ~14% YoY, and if Q2's strong 3.1 GW intake proves lumpy rather than structural, the order book growth narrative that underpins the momentum re-rating could stall and reverse the signal.
  • 2Persistent negative free cash flow (-€98M in Q1 despite strong EBITDA) driven by working capital normalization could pressure the net cash position and force dilutive financing if volumes ramp faster than collections, undermining the quality screen's ROE sustainability.

AI verdict council

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

OpenAI
Proceed
Gemini
Proceed
Claude
Proceed