Quality Momentum

QM · rank #13 · 2026-09-09

NDX1

XETRA · EUR · $11.13B (USD)

SignalBuy1.7strength 1.7 / 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.
+67.62%
ROE TTM
Return on equity, trailing 12 months.
+32.4%
Profit margin
Net profit margin, trailing 12 months.
+5.0%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$11.13B
Anchor (recent)
Close on 2026-08-10
$38.52
Anchor (far)
Close on 2025-08-08
$22.98

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

Nordex SE is a pure-play onshore wind turbine manufacturer generating ~90% of revenue from turbine projects and ~10% from a growing long-term service segment, with an EUR 18B+ combined order book.

Rationale

The 67% trailing momentum is directly supported by fundamental delivery — Q2 2026 EBITDA more than doubled YoY, margins expanded to 10.3%, free cash flow turned strongly positive, and a record 2025 order intake of 10.2 GW is now converting into visible revenue, giving the quality-momentum signal genuine earnings-acceleration backing rather than pure sentiment.

Material risks

  • 1Policy/auction-pricing reversal in Europe or the US — Nordex's backlog is geographically concentrated and margin expansion is predicated on current auction pricing holding; a US tariff escalation or German permitting slowdown could simultaneously compress ASPs and delay project recognition, breaking both the quality and momentum legs.
  • 2Capital-intensive blade facility ramp-up and working capital swings tied to large lumpy orders (e.g., 525 MW Türkiye) could erode the EUR 1.7B net cash cushion and reverse the free cash flow inflection that underpins the ROE 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