Quality Momentum

QM · rank #4 · 2026-07-21

NDX1

XETRA · EUR · $10.70B (USD)

SignalStrong Buy4.3strength 4.3 / 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.
+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).
$10.70B
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 quality_momentum signal is reinforced by concrete fundamentals: trailing ROE of 27.5% reflects genuine margin expansion (EBITDA margin nearly doubling to 8.2% YoY), and 12-month price momentum aligns with a Q1 2026 earnings beat, record backlog, and H1 2026 order intake up ~10% YoY, not mere sentiment rotation.

Material risks

  • 1Q1 2026 project order intake declined ~14% YoY, and any sustained softening in tender-market demand or pricing pressure from competing OEMs could erode the backlog-driven revenue visibility that underpins the quality thesis.
  • 2Persistent negative free cash flow (-€98M in Q1 2026 despite strong net income) driven by working capital normalization could intensify if higher-volume quarters require further capital absorption, pressuring the net cash cushion that supports the quality screen.

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