Quality Momentum

QM · rank #18 · 2026-07-23

DBG

PARIS · EUR · $1.73B (USD)

SignalBuy1.4strength 1.4 / 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.
+90.37%
ROE TTM
Return on equity, trailing 12 months.
+11.9%
Profit margin
Net profit margin, trailing 12 months.
+3.8%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$1.73B
Anchor (recent)
Close on 2026-06-23
$10.05
Anchor (far)
Close on 2025-06-23
$5.28

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

Derichebourg is a French industrial conglomerate operating metal recycling and municipal multiservices divisions, generating ~€3.3B in annual revenue with earnings tied to scrap commodity cycles and long-term public sector contracts.

Rationale

The ~90% 12-1 momentum signal is directly reinforced by the HY26 earnings beat—revenue +7.8%, recurring EBIT +23%, raised full-year EBITDA guidance to €350-370M—alongside a regulatory tailwind from new import quotas and customs duties effective July 2026 that structurally favor domestic recyclers like DBG.

Material risks

  • 1Scrap price reversal or policy rollback on the July 2026 customs duties/quotas would simultaneously collapse the earnings upgrade cycle and the regulatory moat that is currently driving both the momentum and the quality signals.
  • 2Associate exposure to Elior Group has already forced a €25M provision for Elior Italy in HY26, and further losses at Elior could drain capital allocation and depress reported EPS, undermining the quality leg of the thesis.

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