Quality Momentum

QM · rank #2 · 2026-07-21

KGH

GPW · PLN · $15.50B (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).
$15.50B
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 champion with core Polish assets and international exposure via Sierra Gorda, generating revenues across copper, silver, and gold.

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 (1.99) is backed by fundamental earnings acceleration rather than pure sentiment rotation.

Material risks

  • 1KGHM is an unhedged price-taker on copper/silver/gold, and Q1 2026 outperformance was overwhelmingly price-driven rather than volume-driven — a metals price reversal would collapse earnings and invalidate the quality signal rapidly.
  • 2Elevated Polish minerals extraction tax scales with metal prices, meaning peak earnings simultaneously trigger peak tax drag and higher working capital requirements, compressing free cash flow well below reported net profit and limiting capital return optionality.

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