Quality Momentum

QM · rank #15 · 2026-07-24

DBG

PARIS · EUR · $1.73B (USD)

SignalBuy1.5strength 1.5 / 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.
+84.63%
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 2026-06-24
$9.87
Anchor (far)
Close on 2025-06-24
$5.34

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 group 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 momentum signal (0.85) is directly reinforced by a concrete fundamental catalyst—HY26 recurring EBIT up 23%, guidance raised to €350–370M EBITDA, and a ~10% share re-rating on results—making this a fundamentals-driven price move rather than pure sentiment, which is precisely what quality_momentum seeks.

Material risks

  • 1Scrap price reversal is the primary thesis-breaker—non-ferrous tailwinds and new customs duties drove the guidance raise, but a commodity downturn or policy reversal on quotas would collapse the earnings upgrade cycle that is sustaining momentum.
  • 2Elior Group associate exposure has already forced a €25M provision for Elior Italy and could generate further drag on reported profitability or divert capital, muddying the clean quality signal embedded in the ROE and margin metrics.

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