10 Best Erp Software for January 2026
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Market Overview & Selection Criteria
The current market presents opportunities in ERP software and fintech sectors, where companies show varying degrees of undervaluation based on intrinsic value calculations from ValueSense data. This watchlist features 10 stocks selected using ValueSense's quality ratings, intrinsic value estimates, revenue growth, ROIC, and FCF margins to highlight potential value plays amid tech sector volatility. Selection prioritizes firms with strong gross margins, positive growth trajectories, and discrepancies between current pricing and intrinsic values, focusing on software leaders and emerging players for diversified stock picks analysis. These metrics provide educational insights into undervalued stocks across large-cap stability and high-growth profiles.
Featured Stock Analysis
Stock #1: Oracle Corporation (ORCL)
| Metric | Value |
|---|---|
| Market Cap | $557.8B |
| Quality Rating | 6.1 |
| Intrinsic Value | $168.0 |
| 1Y Return | 18.2% |
| Revenue | $61.0B |
| Free Cash Flow | ($13.2B) |
| Revenue Growth | 11.1% |
| FCF margin | (21.6%) |
| Gross margin | 78.0% |
| ROIC | 13.1% |
| Total Debt to Equity | 408.4% |
Investment Thesis
Oracle Corporation (ORCL) stands out with a market cap of $557.8B and a Quality rating of 6.1, showcasing robust gross margins at 78.0% and ROIC of 13.1%. Despite negative free cash flow of $13.2B and FCF margin of 21.6%, the company maintains solid revenue of $61.0B with 11.1% growth, positioning it as a key player in ERP software. Its intrinsic value of $168.0 suggests potential undervaluation, supported by a positive 1Y return of 18.2%, making it a compelling analysis subject for investors examining enterprise tech stability. High total debt to equity at 408.4% warrants scrutiny, but strong margins indicate operational efficiency in cloud and database segments.
Key Catalysts
- Consistent revenue growth at 11.1% amid ERP demand
- High gross margin of 78.0% reflecting pricing power
- Positive 1Y return of 18.2% showing market resilience
Risk Factors
- Negative FCF of $13.2B and 21.6% margin signaling cash concerns
- Elevated total debt to equity at 408.4% increasing leverage risk
Stock #2: SAP SE (SAP)
| Metric | Value |
|---|---|
| Market Cap | $275.8B |
| Quality Rating | 6.2 |
| Intrinsic Value | $263.7 |
| 1Y Return | -2.6% |
| Revenue | €36.5B |
| Free Cash Flow | €6,482.0M |
| Revenue Growth | 9.7% |
| FCF margin | 17.8% |
| Gross margin | 73.5% |
| ROIC | 16.6% |
| Total Debt to Equity | 21.1% |
Investment Thesis
SAP SE (SAP), with a $275.8B market cap and Quality rating of 6.2, demonstrates strong fundamentals including €36.5B revenue, €6,482.0M free cash flow, and 17.8% FCF margin. ROIC at 16.6% and gross margin of 73.5% highlight efficiency, with 9.7% revenue growth despite a -2.6% 1Y return. Intrinsic value of $263.7 points to undervaluation potential in the ERP space, offering educational value for analyzing global software leaders with low total debt to equity of 21.1%.
Key Catalysts
- Solid FCF of €6,482.0M and 17.8% margin
- High ROIC of 16.6% indicating capital efficiency
- Steady 9.7% revenue growth in enterprise software
Risk Factors
- Recent 1Y return decline of -2.6% amid market pressures
- Currency exposure from euro-denominated metrics
Stock #3: Salesforce, Inc. (CRM)
| Metric | Value |
|---|---|
| Market Cap | $244.7B |
| Quality Rating | 6.9 |
| Intrinsic Value | $211.6 |
| 1Y Return | -23.3% |
| Revenue | $40.3B |
| Free Cash Flow | $12.9B |
| Revenue Growth | 8.4% |
| FCF margin | 32.0% |
| Gross margin | 77.7% |
| ROIC | 10.3% |
| Total Debt to Equity | 18.6% |
Investment Thesis
Salesforce, Inc. (CRM) features a $244.7B market cap, Quality rating of 6.9, and standout $12.9B free cash flow with 32.0% FCF margin on $40.3B revenue. Gross margin at 77.7% and 8.4% growth support its CRM dominance, though -23.3% 1Y return reflects volatility. Intrinsic value of $211.6 suggests value opportunities, balanced by low 18.6% debt to equity and 10.3% ROIC for in-depth CRM stock analysis.
Key Catalysts
- Exceptional 32.0% FCF margin driving cash generation
- High gross margin of 77.7% in cloud CRM
- $40.3B revenue base with steady growth
Risk Factors
- Sharp 1Y return drop of -23.3%
- Moderate ROIC of 10.3% vs. peers
Stock #4: Nu Holdings Ltd. (NU)
| Metric | Value |
|---|---|
| Market Cap | $82.0B |
| Quality Rating | 6.8 |
| Intrinsic Value | $85.8 |
| 1Y Return | 60.1% |
| Revenue | $13.5B |
| Free Cash Flow | $3,665.8M |
| Revenue Growth | 28.5% |
| FCF margin | 27.1% |
| Gross margin | 43.0% |
| ROIC | 35.8% |
| Total Debt to Equity | 23.1% |
Investment Thesis
Nu Holdings Ltd. (NU), at $82.0B market cap and 6.8 Quality rating, excels with 60.1% 1Y return, $13.5B revenue growing 28.5%, and $3,665.8M FCF at 27.1% margin. ROIC of 35.8% underscores fintech strength, with intrinsic value $85.8 indicating potential. Gross margin of 43.0% and 23.1% debt to equity provide a balanced profile for fintech stock picks.
Key Catalysts
- Explosive 60.1% 1Y return and 28.5% revenue growth
- Top-tier ROIC of 35.8%
- Strong 27.1% FCF margin
Risk Factors
- Lower gross margin of 43.0% vs. software peers
- Emerging market fintech volatility
Stock #5: Workday, Inc. (WDAY)
| Metric | Value |
|---|---|
| Market Cap | $54.4B |
| Quality Rating | 10.0 |
| Intrinsic Value | $218.6 |
| 1Y Return | -18.3% |
| Revenue | $9,216.0M |
| Free Cash Flow | $2,585.0M |
| Revenue Growth | 3.4% |
| FCF margin | 28.0% |
| Gross margin | 77.5% |
| ROIC | 8.1% |
| Total Debt to Equity | 42.7% |
Investment Thesis
Workday, Inc. (WDAY) boasts a perfect 10.0 Quality rating, $54.4B market cap, and intrinsic value of $218.6. With $9,216.0M revenue, $2,585.0M FCF at 28.0% margin, and 77.5% gross margin, it shows HCM software prowess despite 3.4% growth and -18.3% 1Y return. ROIC of 8.1% and 42.7% debt to equity merit analysis for undervalued growth stocks.
Key Catalysts
- Elite 10.0 Quality rating
- High 28.0% FCF margin and 77.5% gross margin
- Intrinsic value upside at $218.6
Risk Factors
- Slow 3.4% revenue growth
- -18.3% 1Y return
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Stock #6: Roper Technologies, Inc. (ROP)
| Metric | Value |
|---|---|
| Market Cap | $46.7B |
| Quality Rating | 6.1 |
| Intrinsic Value | $542.7 |
| 1Y Return | -15.3% |
| Revenue | $7,721.0M |
| Free Cash Flow | $2,460.1M |
| Revenue Growth | 14.0% |
| FCF margin | 31.9% |
| Gross margin | 69.0% |
| ROIC | 5.5% |
| Total Debt to Equity | 47.3% |
Investment Thesis
Roper Technologies, Inc. (ROP) has a $46.7B market cap, 6.1 Quality rating, and $542.7 intrinsic value. Revenue of $7,721.0M grows 14.0%, with $2,460.1M FCF at 31.9% margin and 69.0% gross margin. Despite -15.3% 1Y return and 5.5% ROIC, low volatility in application software makes it a diversification candidate.
Key Catalysts
- Strong 14.0% revenue growth
- 31.9% FCF margin efficiency
- Significant intrinsic value of $542.7
Risk Factors
- Low ROIC of 5.5%
- -15.3% 1Y return
Stock #7: ONEOK, Inc. (OKE)
| Metric | Value |
|---|---|
| Market Cap | $46.4B |
| Quality Rating | 6.0 |
| Intrinsic Value | $185.5 |
| 1Y Return | -26.2% |
| Revenue | $31.6B |
| Free Cash Flow | $5,102.0M |
| Revenue Growth | 58.8% |
| FCF margin | 16.2% |
| Gross margin | 21.3% |
| ROIC | 7.6% |
| Total Debt to Equity | 2.6% |
Investment Thesis
ONEOK, Inc. (OKE), $46.4B market cap and 6.0 Quality rating, shows $31.6B revenue surging 58.8%, $5,102.0M FCF at 16.2% margin. Intrinsic value $185.5 highlights midstream potential despite -26.2% 1Y return, 21.3% gross margin, 7.6% ROIC, and minimal 2.6% debt to equity.
Key Catalysts
- Massive 58.8% revenue growth
- Healthy $5,102.0M FCF
- Low 2.6% debt to equity
Risk Factors
- Low gross margin of 21.3%
- -26.2% 1Y return in energy
Stock #8: Tyler Technologies, Inc. (TYL)
| Metric | Value |
|---|---|
| Market Cap | $18.9B |
| Quality Rating | 6.1 |
| Intrinsic Value | $533.8 |
| 1Y Return | -24.2% |
| Revenue | $2,298.3M |
| Free Cash Flow | $618.9M |
| Revenue Growth | 10.6% |
| FCF margin | 26.9% |
| Gross margin | 44.8% |
| ROIC | 7.0% |
| Total Debt to Equity | 18.7% |
Investment Thesis
Tyler Technologies, Inc. (TYL), $18.9B market cap and 6.1 Quality rating, offers $533.8 intrinsic value. $2,298.3M revenue grows 10.6%, $618.9M FCF at 26.9% margin, 44.8% gross margin, 7.0% ROIC, despite -24.2% 1Y return and 18.7% debt to equity.
Key Catalysts
- 10.6% revenue growth in public sector software
- 26.9% FCF margin
- High intrinsic value potential
Risk Factors
- -24.2% 1Y return
- Moderate gross margin of 44.8%
Stock #9: ServiceTitan, Inc. (TTAN)
| Metric | Value |
|---|---|
| Market Cap | $9,505.7M |
| Quality Rating | 5.2 |
| Intrinsic Value | $13.6K |
| 1Y Return | 0.1% |
| Revenue | $707.2B |
| Free Cash Flow | $90.2B |
| Revenue Growth | 96,025.2% |
| FCF margin | 12.8% |
| Gross margin | 70.2% |
| ROIC | (11.3%) |
| Total Debt to Equity | 3.6% |
Investment Thesis
ServiceTitan, Inc. (TTAN), $9,505.7M market cap and 5.2 Quality rating, displays extraordinary $707.2B revenue with 96,025.2% growth and $90.2B FCF at 12.8% margin. Intrinsic value of $13.6K suggests massive upside, though negative 11.3% ROIC and 70.2% gross margin, with 3.6% debt to equity, invite scrutiny for high-growth field service software.
Key Catalysts
- Hyper 96,025.2% revenue growth
- Massive $90.2B FCF scale
- 70.2% gross margin
Risk Factors
- Negative ROIC of 11.3%
- 0.1% 1Y return
Stock #10: Upland Software, Inc. (UPLD)
| Metric | Value |
|---|---|
| Market Cap | $42.0M |
| Quality Rating | 4.4 |
| Intrinsic Value | $40.3 |
| 1Y Return | -66.5% |
| Revenue | $235.6M |
| Free Cash Flow | $26.2M |
| Revenue Growth | (15.0%) |
| FCF margin | 11.1% |
| Gross margin | 73.2% |
| ROIC | (1.4%) |
| Total Debt to Equity | 294.7% |
Investment Thesis
Upland Software, Inc. (UPLD), small-cap $42.0M market cap and 4.4 Quality rating, has $40.3 intrinsic value. $235.6M revenue faces 15.0% decline, but $26.2M FCF at 11.1% margin, 73.2% gross margin persist. Negative 1.4% ROIC and -66.5% 1Y return, high 294.7% debt to equity flag risks in cloud software.
Key Catalysts
- Positive FCF of $26.2M despite revenue dip
- Solid 73.2% gross margin
- Intrinsic value alignment at $40.3
Risk Factors
- Revenue contraction of 15.0%
- High 294.7% debt to equity
- Steep -66.5% 1Y return
Portfolio Diversification Insights
These 10 stocks offer strong diversification across ERP software (ORCL, SAP, CRM, WDAY, TYL), fintech (NU), application software (ROP, UPLD, TTAN), and energy midstream (OKE). Heavy tech allocation 80% provides growth exposure via high ROIC (e.g., NU at 35.8%) and margins (ORCL 78.0%), balanced by OKE's low debt. Large-caps like ORCL $557.8B anchor stability, while small-caps like UPLD add upside. Pair high-growth NU with steady SAP for sector balance, reducing correlation risks in stock watchlist construction.
Market Timing & Entry Strategies
Consider positions during tech pullbacks when intrinsic values exceed current levels, such as ORCL $168.0 or SAP $263.7. Monitor revenue growth spikes like OKE's 58.8% or TTAN's 96,025.2% for momentum entries. Use dollar-cost averaging for volatile names like UPLD (-66.5% 1Y), targeting FCF-positive quarters. Educational analysis favors watching ROIC improvements and debt metrics before scaling.
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FAQ Section
How were these stocks selected?
These stocks were chosen based on ValueSense metrics like Quality ratings (4.4-10.0), intrinsic values, revenue growth, FCF margins, and ROIC, focusing on ERP and related sectors for best value stocks screening.
What's the best stock from this list?
Workday (WDAY) leads with a 10.0 Quality rating and $218.6 intrinsic value, though analysis should compare personal risk tolerance across all, like NU's 35.8% ROIC.
Should I buy all these stocks or diversify?
Diversification across ERP (ORCL, SAP), fintech (NU), and energy (OKE) reduces sector risks; allocate based on market cap sizes from $42.0M (UPLD) to $557.8B (ORCL).
What are the biggest risks with these picks?
Key concerns include high debt (ORCL 408.4%, UPLD 294.7%), negative FCF (ORCL), revenue declines (UPLD -15.0%), and 1Y losses (e.g., CRM -23.3%).
When is the best time to invest in these stocks?
Target periods of undervaluation vs. intrinsic values (e.g., ROP $542.7), post-earnings with strong growth like TTAN's 96,025.2%, or sector rotations into tech.