Quality Momentum

QM · rank #10 · 2026-07-24

ELG

XETRA · EUR · $3.06B (USD)

SignalStrong Buy2.6strength 2.6 / 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.
+126.98%
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 2026-06-24
$179.20
Anchor (far)
Close on 2025-06-24
$78.95

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 designs application-specific mixed-signal ICs for automotive electronics (sensor, lighting, motor-control), generating €582.6M in 2025 revenue with a focused OEM/Tier-1 customer base.

Rationale

The quality_momentum signal is reinforced by a genuine operational inflection — 20.2% YoY Q1 2026 revenue growth, 23.8% EBIT margin, 26.7% FCF yield on sales, and raised full-year guidance — all consistent with an ROE of 17.5% and profit margin of 17.9% that reflect durable mixed-signal design moats rather than cyclical luck.

Material risks

  • 1Strategic sale exploration creates binary event risk — a change-of-control or failed process could disrupt capital allocation, management focus, and the compounding quality thesis that underpins the screen.
  • 2Anchor shareholder accelerated bookbuild (1.86M shares placed) signals potential further supply overhang and governance dilution that could cap near-term price momentum despite strong fundamentals.

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