Quality Momentum

QM · rank #5 · 2026-05-14

ENLT

NASDAQ · $12.61B

verdict · CAUTION

Why this pick · factor scores

The exact numbers the algorithm saw.

Momentum 12-1
Return from 12 months ago to 1 month ago.
+432.65%
ROE TTM
Return on equity, trailing 12 months.
+4.8%
Profit margin
Net profit margin, trailing 12 months.
+11.5%
Market cap
Size filter: > $500M required.
$12.61B
Anchor (recent)
Close on 2026-04-14
$80.99
Anchor (far)
Close on 2025-04-14
$15.21

AI research card

Independent qualitative review before order placement.

Summary

Enlight Renewable Energy Ltd. develops, finances, constructs, owns, and operates utility-scale renewable energy projects, including solar, wind, and energy storage facilities across the US, Israel, and Europe.

Rationale

The strong positive momentum signal (momentum_12_1: 4.3265) combined with a solid profit margin (0.1153) suggests that the company's recent performance is translating into market appreciation.

Material risks

  • 1The company's high debt levels and capital expenditure requirements present a significant risk, as noted by its Altman Z-score of 1.23 and cash-to-debt ratio of 0.18.
  • 2Recent reports indicate a high level of non-cash earnings (accrual ratio: 35%), which can be a sign of aggressive revenue recognition or improper asset depreciation, posing a risk to earnings quality.

Verdict reasoning

While momentum and profitability are positive, high debt and potential earnings quality issues warrant a cautious approach.