Quality Momentum

QM · rank #17 · 2026-09-09

ZAB

GPW · PLN · $8.49B (USD)

SignalBuy1.2strength 1.2 / 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.
+43.70%
ROE TTM
Return on equity, trailing 12 months.
+66.7%
Profit margin
Net profit margin, trailing 12 months.
+4.4%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$8.49B
Anchor (recent)
Close on 2026-08-10
$31.50
Anchor (far)
Close on 2025-08-08
$21.92

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

Żabka Group is Poland's dominant convenience retailer operating ~12,750 franchise stores with early-stage expansion into Romania and autonomous store formats.

Rationale

Strong 12-month price momentum (0.44) is directly reinforced by accelerating fundamentals — Q2 2026 revenue +13.7% YoY, adjusted net profit +66% YoY, and expanding EBITDA margins — while an ROE of 66.7% confirms the quality screen is capturing genuine capital efficiency in a high-throughput franchise model.

Material risks

  • 1Like-for-like growth remains modest (3.2–4.0%), meaning the revenue story is heavily dependent on continued net store additions; any slowdown in franchisee recruitment or real estate availability could rapidly deflate the growth narrative underpinning momentum.
  • 2Franchisee margin compression is a disclosed management metric, and if rising labor or energy costs squeeze franchisee economics, Żabka faces either network attrition or margin support costs that would pressure consolidated profitability.

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