Quality Momentum

QM · rank #12 · 2026-09-07

ELG

XETRA · EUR · $2.70B (USD)

SignalBuy1.8strength 1.8 / 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.
+67.27%
ROE TTM
Return on equity, trailing 12 months.
+18.0%
Profit margin
Net profit margin, trailing 12 months.
+16.4%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$2.70B
Anchor (recent)
Close on 2026-08-07
$146.00
Anchor (far)
Close on 2025-08-08
$87.28

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 is a Dortmund-based automotive mixed-signal ASIC specialist supplying application-specific ICs to Tier-1s like Continental, with structural content-per-vehicle growth as its core revenue driver.

Rationale

The 67% trailing momentum is grounded in fundamental delivery — H1 2026 revenue +15% YoY, ~24% operating EBIT margin, ~18% FCF margin, and a raised full-year guide — making the quality_momentum signal self-reinforcing rather than sentiment-only.

Material risks

  • 1Founders exploring a sale via Morgan Stanley creates binary event risk — a deal at a modest premium or a failed process could cap or reverse momentum sharply, disrupting the clean quality-momentum thesis mid-trade.
  • 2Elmos is fabless-dependent on X-FAB, TSMC, Samsung, and others, so any wafer allocation tightening or geopolitical supply disruption hits margins without the buffer of captive manufacturing.

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