Quality Momentum

QM · rank #20 · 2026-09-09

SBMO

AMSTERDAM · EUR · $6.93B (USD)

SignalBuy1.0strength 1.0 / 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.
+56.30%
ROE TTM
Return on equity, trailing 12 months.
+18.0%
Profit margin
Net profit margin, trailing 12 months.
+15.8%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$6.93B
Anchor (recent)
Close on 2026-08-10
$33.50
Anchor (far)
Close on 2025-08-08
$21.43

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

SBM Offshore designs, builds, leases, and operates large-scale FPSO and FSO units for deepwater oil and gas clients including Petrobras, ExxonMobil Guyana, and TotalEnergies, underpinned by long-term lease-and-operate contracts.

Rationale

The 56% trailing momentum is grounded in fundamental delivery — H1 2026 directional revenue more than doubled YoY, guidance was raised, a $270M buyback was announced, and the $35.6B backlog locks in multi-year cash flows that directly support the ROE (18%) and margin (16%) quality signals.

Material risks

  • 1Petrobras and ExxonMobil Guyana concentration means a single contract renegotiation, Brazilian regulatory shift, or Guyana fiscal regime change could impair a disproportionate share of the $35.6B backlog and collapse the revenue visibility thesis.
  • 2Capital-intensive FPSO construction at scale carries execution risk — cost overruns or financing constraints on the ~$10B turnkey portion could compress margins and erode the profit-margin quality signal that anchors this screen.

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