Quality Momentum

QM · rank #2 · 2026-09-09

KGH

GPW · PLN · $19.32B (USD)

SignalStrong Buy4.6strength 4.6 / 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.
+165.29%
ROE TTM
Return on equity, trailing 12 months.
+24.1%
Profit margin
Net profit margin, trailing 12 months.
+20.0%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$19.32B
Anchor (recent)
Close on 2026-08-10
$358.80
Anchor (far)
Close on 2025-08-08
$135.25

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 Miedz is a vertically integrated Polish copper and silver producer with global operations including the Sierra Gorda mine in Chile and a market cap of ~$19.3B.

Rationale

The momentum_12_1 signal of 1.65 is directly validated by a copper price-driven earnings surge — H1 2026 net profit up ~10x YoY, EBITDA margins near 29% — while ROE of 24% and profit margin of 20% confirm the quality screen is capturing real fundamental improvement, not just sentiment.

Material risks

  • 1Earnings are overwhelmingly price-driven rather than volume-driven, meaning a copper price reversal would rapidly compress the ROE and margin metrics that justify the quality score, collapsing both legs of the quality-momentum thesis simultaneously.
  • 2Sierra Gorda operational and policy risk in Chile, combined with a guided 49% YoY drop in molybdenum output, signals that by-product and international asset contributions are deteriorating even as headline copper flatters consolidated results.

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