QM · rank #4 · 2026-10-23
PCO
GPW · PLN · $6.79B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +102.12% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +85.1% |
| Profit margin Net profit margin, trailing 12 months. | +4.0% |
| Market cap (USD) Size filter: > $300M required (USD-equivalent). | $6.79B |
| Anchor (recent) Close on 2026-09-23 | $43.37 |
| Anchor (far) Close on 2025-09-23 | $21.46 |
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
Pepco Group (PCO@GPW) is a pure-play Central and Western European value discount retailer operating ~4,260 Pepco-format stores focused on apparel and general merchandise following the exit of FMCG and disposal of Dealz Poland.
Rationale
The momentum_12_1 of 1.02 and ROE of 85% are directly reinforced by FY26 guidance of >60% underlying net earnings growth, a raised €350M+ unlevered FCF target, a new €400M buyback, and the strongest quarterly LFL since the strategy reset — exactly the quality-earnings acceleration that quality_momentum screens are designed to capture.
Material risks
- 1Action is widening its lead on Polish non-food discount shopping lists while Lidl and Biedronka expand into non-food, threatening the core market's LFL trajectory and compressing the very margin recovery (~200bps gross margin expansion) underpinning the elevated ROE signal.
- 2The 600-store Western European rollout (FY27–FY30) is the primary growth engine but carries execution risk on returns if FX, freight, or consumer demand reverse — and the FMCG exit removes the diversification buffer that previously cushioned format-level underperformance.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.