Quality Momentum

QM · rank #17 · 2026-09-04

DBG

PARIS · EUR · $1.67B (USD)

SignalBuy1.4strength 1.4 / 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.
+67.43%
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).
$1.67B
Anchor (recent)
Close on 2026-08-05
$9.52
Anchor (far)
Close on 2025-08-05
$5.68

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 services divisions across Europe, now materially enlarged by the completed acquisition of Germany's Scholz Recycling Group.

Rationale

Strong 12-1 momentum (0.67) is reinforced by above-consensus H1 results, a raised full-year EBITDA guidance of €350–370M, and a transformative acquisition that expands European scale—giving the momentum signal a fundamental earnings-revision catalyst rather than pure sentiment drift.

Material risks

  • 1Scholz integration execution risk is the primary thesis-breaker—a large cross-border acquisition in a cyclical commodity business could absorb management bandwidth, surface hidden liabilities, and compress margins if scrap prices soften during the ramp-up period.
  • 2Recycling volumes and non-ferrous margins remain tightly coupled to industrial output and commodity cycles, meaning any European manufacturing slowdown or reversal of the new scrap import quotas/duties could rapidly deflate both earnings and the momentum signal.

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