← Quality Momentum

QM · rank #18 · 2026-10-27

DBG

PARIS · EUR · $1.37B (USD)

SignalBuy1.3strength 1.3 / 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.
+63.70%
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 2026-09-25
$8.51
Anchor (far)
Close on 2025-09-26
$5.20

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

Derichebourg is a European metal recycling and environmental services provider focused on scrap metal processing, collection infrastructure, and recycling services.

Rationale

High 12-month momentum (0.6370) and solid ROE (11.89%) are supported by 9-month volume growth (+4.4% scrap) and a 19.8% EBITDA increase, driving full-year EBITDA toward the top end of the €350–370 million guidance.

Material risks

  • 1Failure to integrate or achieve projected synergies from the €480 million Scholz Recycling acquisition while carrying €1.187 billion in net debt (2.9x leverage) at elevated refinancing coupon rates (5.375% and 5.875%).
  • 2Downward pressure on scrap metal prices and processing spreads caused by cyclical weakness in European industrial production and competitive scrap collection networks.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Proceed