Quality Momentum

QM · rank #12 · 2026-09-10

ELG

XETRA · EUR · $2.70B (USD)

SignalBuy1.9strength 1.9 / 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.
+74.36%
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 2026-08-11
$150.80
Anchor (far)
Close on 2025-08-11
$86.49

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 designs and sells application-specific ICs primarily for automotive end-markets, covering sensing, lighting, and driver-assistance functions.

Rationale

Q2 2026 revenue +11% YoY with H1 up >15% and ~24% EBIT margins directly validates the quality-momentum pairing — strong profitability (ROE ~18%, margin ~16%) is accelerating alongside price momentum of 74%, not decoupling from it.

Material risks

  • 1Automotive semiconductor demand is highly cyclical and concentrated; any inventory correction at Tier-1 auto suppliers (already a recurring pattern in 2023-24) could rapidly reverse the revenue trajectory that underpins both the momentum and quality signals.
  • 2Elmos is a fabless/fab-lite niche player with meaningful customer concentration in European OEMs facing structural EV transition uncertainty, which could compress order visibility and reprice the quality premium quickly.

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