Quality Momentum

QM · rank #11 · 2026-07-22

ELG

XETRA · EUR · $3.06B (USD)

SignalBuy3.2strength 3.2 / 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.
+152.52%
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).
$3.06B
Anchor (recent)
Close on 2026-06-22
$188.60
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 serving comfort, safety, and electrification applications, with Q1 2026 revenues of €152.5m and a 23.8% EBIT margin.

Rationale

The quality_momentum signal is reinforced by a concrete fundamental catalyst — Q1 2026 beat plus raised FY2026 guidance driving 12-month price momentum, while 17.5% ROE and 17.9% profit margins confirm the quality screen is anchored in real earnings power, not accounting noise.

Material risks

  • 1Competitive position is demand-driven rather than moat-protected — no disclosed sole-supplier positions or long-term order backlogs means a cyclical auto production downturn or OEM capex pullback could rapidly deflate both the momentum and quality signals simultaneously.
  • 2Insider share sales in May 2026 coinciding with the guidance raise create an ownership overhang signal; if insider selling accelerates, it may cap near-term price momentum and undermine the 12-1 signal's persistence.

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