QM · rank #5 · 2026-09-04
PCO
GPW · PLN · $6.37B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +110.50% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +85.1% |
| Profit margin Net profit margin, trailing 12 months. | +4.0% |
| Market cap (USD) Size filter: > $300M required (USD-equivalent). | $6.37B |
| Anchor (recent) Close on 2026-08-05 | $46.60 |
| Anchor (far) Close on 2025-08-05 | $22.14 |
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
Pepco Group is a pan-European value discount retailer operating over 5,000 Pepco and Dealz stores concentrated in Central and Eastern Europe, with Poundland excluded from continuing operations.
Rationale
The momentum signal (1.105) is supported by concrete fundamental drivers — 8.8% constant-currency revenue growth, 180bps gross margin expansion, and a €400m buyback — giving the quality-momentum thesis real earnings-cycle backing rather than pure sentiment rotation.
Material risks
- 1Q3 FY25 revenue missed market estimates by ~€70m despite solid like-for-like growth, signaling that rapid store expansion is diluting per-store productivity and that consensus may still be too optimistic on top-line delivery.
- 2Poundland's exclusion from continuing operations creates latent restructuring or disposal cost risk that could absorb capital earmarked for the buyback and compress the ROE (currently an elevated 0.85) if charges hit the P&L.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.