Quality Momentum

QM · rank #20 · 2026-07-27

DBG

PARIS · EUR · $1.71B (USD)

SignalBuy1.0strength 1.0 / 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.
+69.57%
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).
$1.71B
Anchor (recent)
Close on 2026-06-26
$9.72
Anchor (far)
Close on 2025-06-27
$5.73

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 local authority services divisions, benefiting from scrap metal price cycles and domestic regulatory support.

Rationale

The 0.70 momentum signal is directly validated by the >10% post-results share re-rating on upgraded EBITDA guidance, while 11.9% ROE and accelerating EPS growth (€0.40→€0.46) confirm the quality screen is capturing a real earnings inflection, not mere sentiment drift.

Material risks

  • 1The competitive position rests on regulatory tailwinds (quotas and customs duties effective July 2026) rather than structural moat — any policy reversal or trade negotiation rollback directly collapses the upgraded €350–370m EBITDA guide that is driving the momentum signal.
  • 2Scholz Recycling integration and ongoing litigation introduce binary execution risk that could absorb management bandwidth and generate one-off charges, disrupting the clean earnings trajectory the quality screen is pricing in.

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