Quality Momentum

QM · rank #7 · 2026-07-21

JEN

XETRA · EUR · $2.53B (USD)

SignalStrong Buy3.5strength 3.5 / 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.
+157.44%
ROE TTM
Return on equity, trailing 12 months.
+7.9%
Profit margin
Net profit margin, trailing 12 months.
+7.6%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$2.53B
Anchor (recent)
Close on 2026-06-19
$46.96
Anchor (far)
Close on 2025-06-20
$18.24

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

Jenoptik is a German photonics and precision optics group supplying optical systems and subsystems primarily to semiconductor equipment makers and OEM customers, with a growing data-center exposure.

Rationale

The momentum signal (1.57) is reinforced by a record Q1 2026 order intake of €356.9m (+74% YoY) and a €719m backlog that provide tangible earnings visibility, while improving EBITDA margins (18.4% in Q1, guided 19–21% for FY2026) support the quality leg of the screen.

Material risks

  • 1Jenoptik's results are tightly coupled to semiconductor and OEM capex cycles, and the FY2025 EBITDA decline (~13% YoY) with soft Q4 orders shows how quickly earnings can deteriorate if data-center or chip-equipment spending stalls before the backlog converts.
  • 2High customer concentration among a small number of OEM and semiconductor clients means a single large customer internalizing photonics capability or switching suppliers could rapidly deflate both the record backlog and the pricing power underpinning margin recovery.

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