Quality Momentum

QM · rank #15 · 2026-07-27

ELG

XETRA · EUR · $3.06B (USD)

SignalBuy2.2strength 2.2 / 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.
+101.42%
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 2026-06-26
$177.00
Anchor (far)
Close on 2025-06-27
$87.88

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 and produces specialized, application-specific mixed-signal integrated circuits (ICs) for automotive electronics, including sensor, lighting, and motor-control applications.

Rationale

The strong quality-momentum signal is validated by an impressive Q1 2026 sales increase of 20.2% YoY, a raised full-year guidance, a robust 17.5% ROE, and exceptional free cash flow generation at 26.7% of sales.

Material risks

  • 1Long-term margin compression and growth deceleration if key automotive OEM customers choose to insource mixed-signal chip design capabilities.
  • 2Strategic and execution uncertainty surrounding a potential sale of the company alongside share overhang risks from anchor shareholders reducing their stakes via accelerated bookbuilds.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Proceed