10 Best Compounders Roic Machines for November 2025
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Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Market Overview & Selection Criteria
The current market landscape is defined by rapid technological innovation, resilient consumer demand, and ongoing shifts in global supply chains. In this environment, investors are seeking companies with robust fundamentals, strong free cash flow, and sustainable growth prospects. Our selection methodology leverages ValueSense’s proprietary intrinsic value models, focusing on:
- High Return on Invested Capital (ROIC)
- Consistent free cash flow generation
- Attractive intrinsic value relative to current price
- Sector leadership and innovation
- Prudent capital allocation and manageable debt
This watchlist features stocks across technology, healthcare, and financial services, each screened for quality, growth, and value using ValueSense’s institutional-grade analytics[1][2].
Featured Stock Analysis
Stock #1: NVIDIA Corporation (NVDA)
| Metric | Value |
|---|---|
| Market Cap | $4,933.9B |
| Quality Rating | 8.3 |
| Intrinsic Value | $73.3 |
| 1Y Return | 52.5% |
| Revenue | $165.2B |
| Free Cash Flow | $72.0B |
| Revenue Growth | 71.6% |
| FCF margin | 43.6% |
| Gross margin | 69.8% |
| ROIC | 176.6% |
| Total Debt to Equity | 10.6% |
Investment Thesis
NVIDIA stands at the forefront of the AI and semiconductor revolution, powering data centers, gaming, and autonomous vehicles. With a market cap of $4,933.9B and a stellar 1-year return of 52.5%, NVIDIA’s growth is underpinned by surging demand for high-performance GPUs and AI infrastructure. The company’s revenue reached $165.2B, with a remarkable revenue growth rate of 71.6%. Its free cash flow of $72.0B and a gross margin of 69.8% reflect operational excellence and pricing power.
NVIDIA’s Quality rating of 8.3 and an ROIC of 176.6% highlight its capital efficiency. Despite a high valuation, ValueSense’s intrinsic value estimate is $73.3, suggesting the market is pricing in significant future growth.
Key Catalysts
- Ongoing AI adoption across industries
- Expansion in data center and cloud computing markets
- Leadership in autonomous vehicle and edge computing chips
- Strong developer ecosystem and software integration
Risk Factors
- High valuation relative to intrinsic value
- Cyclical semiconductor demand
- Competitive pressure from AMD, Intel, and emerging players
- Geopolitical risks affecting global supply chains
Stock #2: Apple Inc. (AAPL)
| Metric | Value |
|---|---|
| Market Cap | $4,041.6B |
| Quality Rating | 7.0 |
| Intrinsic Value | $93.0 |
| 1Y Return | 19.9% |
| Revenue | $416.2B |
| Free Cash Flow | $98.8B |
| Revenue Growth | 6.4% |
| FCF margin | 23.7% |
| Gross margin | 46.9% |
| ROIC | 205.1% |
| Total Debt to Equity | 10.8% |
Investment Thesis
Apple remains a global technology leader, driven by its ecosystem of devices, services, and software. With a $4,041.6B market cap and a 1-year return of 19.9%, Apple’s resilience is evident in its $416.2B revenue and $98.8B free cash flow. The company’s revenue growth of 6.4% is modest, but its FCF margin of 23.7% and gross margin of 46.9% underscore its profitability.
A Quality rating of 7.0 and an ROIC of 205.1% reflect Apple’s efficient capital deployment. ValueSense’s intrinsic value for AAPL is $93.0, indicating the stock trades at a premium, likely due to its brand strength and recurring revenue streams.
Key Catalysts
- Continued growth in services and wearables
- Expansion into new product categories (e.g., AR/VR, health tech)
- Strong brand loyalty and global distribution
- Share buybacks and dividend growth
Risk Factors
- Slower hardware upgrade cycles
- Regulatory scrutiny in the US and EU
- Supply chain vulnerabilities
- Dependence on iPhone sales for revenue
Stock #3: Microsoft Corporation (MSFT)
| Metric | Value |
|---|---|
| Market Cap | $3,848.9B |
| Quality Rating | 7.6 |
| Intrinsic Value | $479.2 |
| 1Y Return | 27.9% |
| Revenue | $293.8B |
| Free Cash Flow | $78.0B |
| Revenue Growth | 15.6% |
| FCF margin | 26.6% |
| Gross margin | 68.8% |
| ROIC | 27.2% |
| Total Debt to Equity | 16.7% |
Investment Thesis
Microsoft is a dominant force in cloud computing, enterprise software, and AI. With a $3,848.9B market cap and a 1-year return of 27.9%, Microsoft’s $293.8B revenue and $78.0B free cash flow highlight its scale and profitability. The company’s revenue growth of 15.6% and FCF margin of 26.6% are driven by Azure, Office 365, and LinkedIn.
A Quality rating of 7.6 and ROIC of 27.2% reflect solid capital allocation. ValueSense’s intrinsic value for MSFT is $479.2, supporting its premium valuation in the market.
Key Catalysts
- Expansion of Azure cloud services
- Integration of AI across product lines
- Growth in enterprise and government contracts
- Strategic acquisitions (e.g., Activision Blizzard)
Risk Factors
- Intense competition in cloud and productivity software
- Regulatory challenges in the US and EU
- Currency headwinds impacting international revenue
- Execution risk in large-scale integrations
Stock #4: Alphabet Inc. (GOOG)
| Metric | Value |
|---|---|
| Market Cap | $3,398.5B |
| Quality Rating | 8.0 |
| Intrinsic Value | $236.2 |
| 1Y Return | 63.6% |
| Revenue | $385.5B |
| Free Cash Flow | $73.6B |
| Revenue Growth | 13.5% |
| FCF margin | 19.1% |
| Gross margin | 59.2% |
| ROIC | 31.4% |
| Total Debt to Equity | 8.7% |
Investment Thesis
Alphabet, the parent of Google, is a digital advertising and cloud powerhouse. With a $3,398.5B market cap and a 1-year return of 63.6%, Alphabet’s $385.5B revenue and $73.6B free cash flow reflect its dominance in search, YouTube, and cloud services. Revenue growth of 13.5% and a gross margin of 59.2% highlight its scalable business model.
A Quality rating of 8.0 and ROIC of 31.4% underscore Alphabet’s efficient operations. ValueSense’s intrinsic value for GOOG is $236.2, suggesting the stock is priced for continued growth.
Key Catalysts
- Growth in Google Cloud and AI services
- Expansion of YouTube monetization
- Investments in autonomous vehicles and “Other Bets”
- Strong balance sheet for strategic acquisitions
Risk Factors
- Regulatory scrutiny and antitrust actions
- Dependence on digital ad revenue
- Rising competition in cloud and AI
- Privacy and data security concerns
Stock #5: Alphabet Inc. (GOOGL)
| Metric | Value |
|---|---|
| Market Cap | $3,398.5B |
| Quality Rating | 8.0 |
| Intrinsic Value | $241.4 |
| 1Y Return | 64.9% |
| Revenue | $385.5B |
| Free Cash Flow | $73.6B |
| Revenue Growth | 13.4% |
| FCF margin | 19.1% |
| Gross margin | 59.2% |
| ROIC | 31.4% |
| Total Debt to Equity | 8.7% |
Investment Thesis
GOOGL shares represent the same economic interest as GOOG, with minor differences in voting rights. The financial profile mirrors GOOG: $3,398.5B market cap, $385.5B revenue, and $73.6B free cash flow. The 1-year return is 64.9%, with a revenue growth rate of 13.4% and a gross margin of 59.2%.
A Quality rating of 8.0 and ROIC of 31.4% are consistent with Alphabet’s strong fundamentals. ValueSense’s intrinsic value for GOOGL is $241.4.
Key Catalysts
- Same as GOOG: cloud, AI, YouTube, and “Other Bets”
- Share structure appeals to different investor profiles
Risk Factors
- Same as GOOG: regulatory, competition, privacy
Stock #6: Meta Platforms, Inc. (META)
| Metric | Value |
|---|---|
| Market Cap | $1,631.9B |
| Quality Rating | 7.5 |
| Intrinsic Value | $651.8 |
| 1Y Return | 14.3% |
| Revenue | $189.5B |
| Free Cash Flow | $44.8B |
| Revenue Growth | 21.3% |
| FCF margin | 23.7% |
| Gross margin | 82.0% |
| ROIC | 28.3% |
| Total Debt to Equity | 14.9% |
Investment Thesis
Meta Platforms is a leader in social media and digital advertising, with a $1,631.9B market cap and a 1-year return of 14.3%. The company generated $189.5B in revenue and $44.8B in free cash flow, with a revenue growth rate of 21.3%. Its gross margin of 82.0% is among the highest in the sector, reflecting the scalability of its platforms.
A Quality rating of 7.5 and ROIC of 28.3% highlight Meta’s efficient operations. ValueSense’s intrinsic value for META is $651.8.
Key Catalysts
- Growth in Instagram, WhatsApp, and Messenger monetization
- Expansion into the metaverse and AR/VR
- AI-driven ad targeting and content recommendations
- Share repurchases and capital returns
Risk Factors
- Regulatory scrutiny over privacy and competition
- Shifts in digital ad spending
- Execution risk in metaverse investments
- Platform user growth saturation
Stock #7: Taiwan Semiconductor Manufacturing Company Limited (TSM)
| Metric | Value |
|---|---|
| Market Cap | $1,558.3B |
| Quality Rating | 8.2 |
| Intrinsic Value | $415.7 |
| 1Y Return | 58.1% |
| Revenue | NT$3,631.4B |
| Free Cash Flow | NT$889.9B |
| Revenue Growth | 37.0% |
| FCF margin | 24.5% |
| Gross margin | 59.0% |
| ROIC | 36.2% |
| Total Debt to Equity | 19.0% |
Investment Thesis
TSMC is the world’s leading semiconductor foundry, enabling global technology innovation. With a $1,558.3B market cap and a 1-year return of 58.1%, TSMC’s NT$3,631.4B revenue and NT$889.9B free cash flow reflect its scale and efficiency. Revenue growth of 37.0% and a gross margin of 59.0% position TSMC as a critical supplier to Apple, NVIDIA, and others.
A Quality rating of 8.2 and ROIC of 36.2% highlight TSMC’s capital discipline. ValueSense’s intrinsic value for TSM is $415.7.
Key Catalysts
- Global demand for advanced chips (5nm, 3nm)
- Expansion in automotive and IoT markets
- Strategic partnerships with leading tech firms
- Government incentives for domestic chip production
Risk Factors
- Geopolitical tensions in Taiwan-China relations
- Cyclical semiconductor industry trends
- Capital-intensive expansion requirements
- Supply chain disruptions
Stock #8: Eli Lilly and Company (LLY)
| Metric | Value |
|---|---|
| Market Cap | $774.8B |
| Quality Rating | 7.7 |
| Intrinsic Value | $245.7 |
| 1Y Return | 4.3% |
| Revenue | $59.4B |
| Free Cash Flow | $9,020.7M |
| Revenue Growth | 45.4% |
| FCF margin | 15.2% |
| Gross margin | 83.0% |
| ROIC | 36.0% |
| Total Debt to Equity | 178.2% |
Investment Thesis
Eli Lilly is a pharmaceutical leader with a $774.8B market cap and a 1-year return of 4.3%. The company’s $59.4B revenue and $9,020.7M free cash flow are driven by innovation in diabetes, oncology, and immunology. Revenue growth of 45.4% and a gross margin of 83.0% reflect successful product launches and pipeline strength.
A Quality rating of 7.7 and ROIC of 36.0% indicate strong capital efficiency. ValueSense’s intrinsic value for LLY is $245.7.
Key Catalysts
- Blockbuster drugs in diabetes and obesity
- Expanding pipeline in oncology and immunology
- Strategic acquisitions and partnerships
- Global expansion in emerging markets
Risk Factors
- Patent expirations and generic competition
- Regulatory approval risks
- Pricing pressures in key markets
- High debt-to-equity ratio 178.2%
Stock #9: Visa Inc. (V)
| Metric | Value |
|---|---|
| Market Cap | $660.0B |
| Quality Rating | 7.0 |
| Intrinsic Value | $213.5 |
| 1Y Return | 18.2% |
| Revenue | $40.0B |
| Free Cash Flow | $21.6B |
| Revenue Growth | 11.3% |
| FCF margin | 53.9% |
| Gross margin | 57.7% |
| ROIC | 37.8% |
| Total Debt to Equity | 66.4% |
Investment Thesis
Visa is a global payments leader with a $660.0B market cap and a 1-year return of 18.2%. The company’s $40.0B revenue and $21.6B free cash flow are supported by a robust FCF margin of 53.9%. Revenue growth of 11.3% and a gross margin of 57.7% reflect Visa’s scale and network effects.
A Quality rating of 7.0 and ROIC of 37.8% highlight Visa’s profitability. ValueSense’s intrinsic value for V is $213.5.
Key Catalysts
- Growth in digital payments and e-commerce
- Expansion into new markets and fintech partnerships
- Innovation in contactless and mobile payments
- Share buybacks and dividend growth
Risk Factors
- Regulatory scrutiny and antitrust risks
- Competition from fintech disruptors
- Currency and macroeconomic headwinds
- High debt-to-equity ratio 66.4%
Stock #10: Mastercard Incorporated (MA)
| Metric | Value |
|---|---|
| Market Cap | $498.4B |
| Quality Rating | 7.6 |
| Intrinsic Value | $362.5 |
| 1Y Return | 11.0% |
| Revenue | $31.5B |
| Free Cash Flow | $17.0B |
| Revenue Growth | 15.6% |
| FCF margin | 54.0% |
| Gross margin | 77.5% |
| ROIC | 70.1% |
| Total Debt to Equity | 239.7% |
Investment Thesis
Mastercard is a global payments innovator with a $498.4B market cap and a 1-year return of 11.0%. The company’s $31.5B revenue and $17.0B free cash flow are driven by a strong FCF margin of 54.0%. Revenue growth of 15.6% and a gross margin of 77.5% highlight Mastercard’s scalable business model.
A Quality rating of 7.6 and ROIC of 70.1% reflect efficient capital allocation. ValueSense’s intrinsic value for MA is $362.5.
Key Catalysts
- Growth in digital and cross-border payments
- Expansion into B2B and real-time payments
- Strategic fintech partnerships and acquisitions
- Global shift toward cashless transactions
Risk Factors
- Regulatory and antitrust scrutiny
- Competition from new payment technologies
- Currency volatility and global economic risks
- High debt-to-equity ratio 239.7%
Portfolio Diversification Insights
This watchlist spans multiple sectors—technology (NVDA, AAPL, MSFT, GOOG, GOOGL, META, TSM), healthcare (LLY), and financial services (V, MA). The technology allocation offers exposure to AI, cloud, and digital platforms, while healthcare and payments stocks provide defensive growth and cash flow stability. Such diversification helps mitigate sector-specific risks and enhances the portfolio’s resilience to market volatility.
Market Timing & Entry Strategies
Investors should consider phased entry strategies, such as dollar-cost averaging, to manage volatility and avoid timing risks. Monitoring earnings reports, macroeconomic indicators, and sector trends can help identify optimal entry points. ValueSense’s intrinsic value tools and backtesting features allow users to validate entry strategies against historical data, supporting informed decision-making[1][2].
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
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FAQ Section
Q1: How were these stocks selected?
These stocks were chosen using ValueSense’s proprietary screening tools, focusing on high ROIC, strong free cash flow, attractive intrinsic value, and sector leadership. The platform’s analytics ensure a data-driven, fundamental approach to stock selection[1][2].
Q2: What’s the best stock from this list?
Each stock offers unique strengths; the “best” depends on individual investment goals. NVIDIA and TSMC stand out for growth, while Apple and Visa provide stability and cash flow. ValueSense’s ratings and intrinsic value estimates support comparative analysis.
Q3: Should I buy all these stocks or diversify?
Diversification across sectors and business models can help reduce risk. This watchlist is designed to offer exposure to technology, healthcare, and financials, supporting a balanced portfolio approach.
Q4: What are the biggest risks with these picks?
Key risks include sector-specific headwinds, regulatory scrutiny, valuation concerns, and macroeconomic uncertainty. Each stock’s risk profile is detailed in its analysis section above.
Q5: When is the best time to invest in these stocks?
Optimal timing depends on market conditions, earnings cycles, and individual risk tolerance. ValueSense’s tools, such as intrinsic value calculators and backtesting, can help identify favorable entry points based on historical performance and valuation trends[1][2].