Quality Momentum

QM · rank #11 · 2026-07-21

ELG

XETRA · EUR · $3.35B (USD)

SignalBuy3.0strength 3.0 / 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.
+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 targeting comfort, safety, and electrification systems, with a market cap of ~€3.3bn.

Rationale

The momentum signal (1.43) is reinforced by a concrete fundamental catalyst — Q1 2026 revenue +20.2% YoY, raised FY2026 guidance, and a 23.8% EBIT margin — while ROE of 17.5% and profit margin of 17.9% confirm the quality screen is capturing real earnings power, not multiple expansion alone.

Material risks

  • 1Competitive commoditization of mixed-signal comfort/safety ICs by larger players (Infineon, NXP, onsemi) is explicitly flagged and represents the clearest structural disqualifier — if pricing erodes, both the margin and momentum legs of this thesis break simultaneously.
  • 2Automotive end-market cyclicality means any softening in global auto production or OEM electrification capex could rapidly reverse the demand-driven guidance upgrade that is currently sustaining the momentum signal.

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