Quality Momentum

QM · rank #19 · 2026-07-21

DBG

PARIS · EUR · $1.73B (USD)

SignalBuy1.2strength 1.2 / 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.
+84.59%
ROE TTM
Return on equity, trailing 12 months.
+11.9%
Profit margin
Net profit margin, trailing 12 months.
+3.8%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$1.73B
Anchor (recent)
Close on 2026-06-19
$9.89
Anchor (far)
Close on 2025-06-20
$5.36

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

Derichebourg is a French industrial conglomerate operating metal recycling and municipal multiservices divisions, generating ~€3.3B in annual revenue with earnings tied to scrap commodity cycles and long-term public sector contracts.

Rationale

The 84.6% 12-1 momentum signal is directly reinforced by the HY26 earnings beat, 10% post-results share re-rating, and raised full-year EBITDA guidance of €350-370M, while 11.9% ROE and improving margins confirm the quality overlay is not a false positive.

Material risks

  • 1Scrap price volatility is the primary thesis-breaker — the current earnings upgrade cycle is partly driven by non-ferrous market strength and new customs duties effective July 2026, both of which can reverse rapidly and collapse the momentum catalyst.
  • 2Elior Group associate exposure has already forced a €25M provision for Elior Italy in HY26, and further associate losses could drag reported EPS and distort the quality signal without warning.

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