Quality Momentum

QM · rank #13 · 2026-09-11

ELG

XETRA · EUR · $2.70B (USD)

SignalBuy1.8strength 1.8 / 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.
+71.30%
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 2026-08-12
$152.40
Anchor (far)
Close on 2025-08-12
$88.97

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 applications, including sensors, lighting, and driver-assistance systems.

Rationale

Q2 2026 revenue up ~11% YoY with H1 growth exceeding 15% and a ~24% EBIT margin directly validates the quality-momentum screen — strong profitability (ROE ~18%, margin ~16%) is accelerating alongside price momentum of 71%.

Material risks

  • 1Automotive semiconductor demand is highly cyclical and concentrated in European OEMs; any inventory correction or EV adoption slowdown at key customers (e.g. Stellantis, BMW) could abruptly reverse the revenue trajectory underpinning both signals.
  • 2At ~€2.7B market cap with momentum already up 71%, much of the fundamental re-rating may be priced in, leaving the position vulnerable to mean-reversion if Q3 2026 growth decelerates from the current H1 pace.

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