Quality Momentum

QM · rank #2 · 2026-07-27

KGH

GPW · PLN · $15.88B (USD)

SignalStrong Buy5.1strength 5.1 / 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.
+154.07%
ROE TTM
Return on equity, trailing 12 months.
+20.1%
Profit margin
Net profit margin, trailing 12 months.
+17.5%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$15.88B
Anchor (recent)
Close on 2026-06-26
$327.75
Anchor (far)
Close on 2025-06-27
$129.00

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

KGHM Polska Miedź is an integrated Polish copper, silver, and precious metals producer with mines, smelters, and international assets generating diversified commodity output.

Rationale

The quality_momentum signal is reinforced by Q1 2026 record revenues (+33% YoY), a 10x net profit surge driving ROE of ~20%, and a 35% drop in C1 cash costs to 1.69 USD/lb, confirming that both the momentum and quality legs of the screen reflect real fundamental improvement rather than pure sentiment rotation.

Material risks

  • 1Earnings strength is almost entirely price-cycle driven rather than contract-backed — a reversal in copper or silver prices would collapse the ROE and profit margin metrics that qualify this name, with no order backlog or long-term offtake contracts to cushion the drawdown.
  • 2Operating cash flow fell to PLN 680M from PLN 1.4B despite record profits due to working capital absorption, signaling that earnings quality has a near-term cash conversion problem that could pressure the stock if sustained.

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