← Quality Momentum

QM · rank #16 · 2026-10-21

DBG

PARIS · EUR · $1.37B (USD)

SignalSell
verdict · CAUTION

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.
+70.30%
ROE TTM
Return on equity, trailing 12 months.
+11.9%
Profit margin
Net profit margin, trailing 12 months.
+3.8%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$1.37B
Anchor (recent)
Close on 2026-09-21
$8.68
Anchor (far)
Close on 2025-09-19
$5.10

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

DBG is a scaled European waste-management and metal-recycling group combining scrap collection/processing with public-sector services, recently enlarged by the Scholz Recycling acquisition.

Rationale

The name screens well for quality_momentum because share-price momentum is strong, ROE is healthy at 11.9%, margins are positive, and operating results are still improving with 7.8% revenue growth and 9.7% EBITDA growth in H1 2025/26.

Material risks

  • 1Scholz integration and leverage risk, with post-acquisition net debt rising to €1.187 billion and financing costs stepping up after the new senior green notes.
  • 2Recycling earnings remain highly cyclical and commodity-driven, so ferrous/non-ferrous price swings, scrap volumes and steelmaker demand can quickly reverse the current improvement.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Caution