10 Best Proptech for January 2026
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Market Overview & Selection Criteria
The proptech sector, blending property technology with real estate innovation, continues to show resilience amid market volatility, driven by digital transformation in real estate, SaaS solutions for property management, and evolving consumer behaviors in housing and commercial spaces. ValueSense analysis highlights companies with strong revenue growth, positive free cash flow where possible, and attractive intrinsic value estimates compared to market caps. These top 10 proptech stock picks were selected using ValueSense's proprietary screener criteria: Quality rating above 5.0, robust ROIC and margins, revenue growth exceeding industry averages, and significant upside based on intrinsic value calculations. This watchlist emphasizes undervalued opportunities in proptech, focusing on firms with scalable models in real estate tech, modular solutions, and service platforms, ideal for investors seeking best value stocks in technology-driven real estate.
Featured Stock Analysis
Stock #1: Garmin Ltd. (GRMN)
| Metric | Value |
|---|---|
| Market Cap | $38.7B |
| Quality Rating | 6.8 |
| Intrinsic Value | $205.5 |
| 1Y Return | -1.0% |
| Revenue | $6,943.1M |
| Free Cash Flow | $907.4M |
| Revenue Growth | 16.6% |
| FCF margin | 13.1% |
| Gross margin | 58.7% |
| ROIC | 30.4% |
| Total Debt to Equity | 1.8% |
Investment Thesis
Garmin Ltd. (GRMN) stands out in the proptech-adjacent space with its navigation and mapping technologies applicable to real estate and location-based services. With a market cap of $38.7B, the company demonstrates solid financial health through revenue of $6,943.1M and free cash flow of $907.4M. Its Quality rating of 6.8 reflects efficient operations, evidenced by a revenue growth of 16.6%, FCF margin of 13.1%, gross margin of 58.7%, and exceptional ROIC of 30.4%. The intrinsic value of $205.5 suggests substantial undervaluation, despite a 1Y return of -1.0%. Low total debt to equity of 1.8% underscores balance sheet strength, positioning GRMN as a stable pick for long-term value analysis in tech-enabled property solutions.
Key Catalysts
- Strong revenue growth at 16.6% signals expanding market share in location tech for real estate applications
- High ROIC of 30.4% indicates efficient capital use and potential for margin expansion
- Robust free cash flow of $907.4M supports reinvestment and shareholder returns
- Attractive intrinsic value of $205.5 points to significant upside potential
Risk Factors
- Modest 1Y return of -1.0% amid broader market pressures on consumer tech
- Dependence on aviation and fitness segments beyond core proptech exposure
Stock #2: Zillow Group, Inc. Class C (Z)
| Metric | Value |
|---|---|
| Market Cap | $16.2B |
| Quality Rating | 5.5 |
| Intrinsic Value | $103.8 |
| 1Y Return | -9.9% |
| Revenue | $2,483.0M |
| Free Cash Flow | $272.0M |
| Revenue Growth | 15.2% |
| FCF margin | 11.0% |
| Gross margin | 74.9% |
| ROIC | (2.5%) |
| Total Debt to Equity | 1.9% |
Investment Thesis
Zillow Group, Inc. Class C (Z), a leader in online real estate marketplaces, offers compelling metrics for proptech investors with a market cap of $16.2B. Key figures include revenue of $2,483.0M, free cash flow of $272.0M, Quality rating of 5.5, intrinsic value of $103.8, and 1Y return of -9.9%. Growth metrics shine with revenue growth at 15.2%, FCF margin of 11.0%, and gross margin of 74.9%, though ROIC stands at 2.5%. Minimal total debt to equity of 1.9% provides flexibility. This analysis highlights Z's potential in digital real estate platforms, where high margins and growth could drive recovery and value realization.
Key Catalysts
- Impressive gross margin of 74.9% supports scalability in real estate tech
- Revenue growth of 15.2% from expanding platform services
- Positive free cash flow of $272.0M enables tech investments
- Intrinsic value of $103.8 indicates undervaluation for patient investors
Risk Factors
- Negative ROIC of 2.5% reflects capital efficiency challenges
- 1Y return decline of -9.9% tied to housing market sensitivity
Stock #3: Bentley Systems, Incorporated (BSY)
| Metric | Value |
|---|---|
| Market Cap | $12.0B |
| Quality Rating | 6.5 |
| Intrinsic Value | $31.3 |
| 1Y Return | -18.0% |
| Revenue | $1,460.0M |
| Free Cash Flow | $460.1M |
| Revenue Growth | 11.1% |
| FCF margin | 31.5% |
| Gross margin | 81.2% |
| ROIC | 11.2% |
| Total Debt to Equity | 107.4% |
Investment Thesis
Bentley Systems, Incorporated (BSY) excels in infrastructure engineering software with proptech relevance for real estate design. At a market cap of $12.0B, it reports revenue of $1,460.0M, free cash flow of $460.1M, Quality rating of 6.5, intrinsic value of $31.3, and 1Y return of -18.0%. Strong profitability includes revenue growth of 11.1%, exceptional FCF margin of 31.5%, gross margin of 81.2%, and ROIC of 11.2%, offset by total debt to equity of 107.4%. ValueSense data positions BSY as an undervalued SaaS play in digital construction and property management.
Key Catalysts
- Outstanding gross margin of 81.2% and FCF margin of 31.5% for sustained profitability
- Steady revenue growth of 11.1% in infrastructure software demand
- Solid ROIC of 11.2% demonstrates effective asset utilization
- Intrinsic value upside to $31.3 amid sector recovery
Risk Factors
- Elevated total debt to equity at 107.4% increases leverage risk
- 1Y return drop of -18.0% from market headwinds
Stock #4: AppFolio, Inc. (APPF)
| Metric | Value |
|---|---|
| Market Cap | $8,236.9M |
| Quality Rating | 7.2 |
| Intrinsic Value | $81.7 |
| 1Y Return | -7.2% |
| Revenue | $906.3M |
| Free Cash Flow | $211.6M |
| Revenue Growth | 18.9% |
| FCF margin | 23.4% |
| Gross margin | 62.9% |
| ROIC | 90.2% |
| Total Debt to Equity | 6.9% |
Investment Thesis
AppFolio, Inc. (APPF) provides property management software, making it a core proptech contender with market cap $8,236.9M, revenue $906.3M, free cash flow $211.6M, Quality rating 7.2, intrinsic value $81.7, and 1Y return -7.2%. Metrics highlight strength: revenue growth 18.9%, FCF margin 23.4%, gross margin 62.9%, stellar ROIC 90.2%, and low total debt to equity 6.9%. This positions APPF as a high-quality growth stock undervalued per ValueSense models.
Key Catalysts
- Exceptional ROIC of 90.2% signals superior returns on capital
- Robust revenue growth of 18.9% from SaaS adoption in rentals
- Healthy FCF margin of 23.4% for expansion
- Intrinsic value of $81.7 offers clear upside
Risk Factors
- Recent 1Y return of -7.2% amid competition
- Scaling pressures in high-growth phase
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Stock #5: Compass, Inc. (COMP)
| Metric | Value |
|---|---|
| Market Cap | $5,967.4M |
| Quality Rating | 5.3 |
| Intrinsic Value | $50.0 |
| 1Y Return | 81.0% |
| Revenue | $6,642.2M |
| Free Cash Flow | $187.8M |
| Revenue Growth | 24.3% |
| FCF margin | 2.8% |
| Gross margin | 18.2% |
| ROIC | (4.3%) |
| Total Debt to Equity | 58.1% |
Investment Thesis
Compass, Inc. (COMP) disrupts real estate brokerage with tech platforms, showing market cap $5,967.4M, revenue $6,642.2M, free cash flow $187.8M, Quality rating 5.3, intrinsic value $50.0, and strong 1Y return 81.0%. Growth is evident in revenue growth 24.3%, though FCF margin 2.8%, gross margin 18.2%, ROIC 4.3%, and total debt to equity 58.1% warrant caution. ValueSense analysis reveals potential in high-volume real estate tech.
Key Catalysts
- Impressive 1Y return of 81.0% and revenue growth 24.3%
- Scaling platform in brokerage tech
- Positive free cash flow turning point at $187.8M
- Intrinsic value of $50.0 for growth trajectory
Risk Factors
- Low gross margin 18.2% and FCF margin 2.8%
- Negative ROIC 4.3% and debt at 58.1%
Stock #6: The RealReal, Inc. (REAL)
| Metric | Value |
|---|---|
| Market Cap | $4,470.6M |
| Quality Rating | 5.0 |
| Intrinsic Value | $0.9 |
| 1Y Return | 60.6% |
| Revenue | $662.8M |
| Free Cash Flow | ($11.5M) |
| Revenue Growth | 14.3% |
| FCF margin | (1.7%) |
| Gross margin | 74.5% |
| ROIC | (17.3%) |
| Total Debt to Equity | (121.6%) |
Investment Thesis
The RealReal, Inc. (REAL) operates luxury resale with proptech logistics ties, at market cap $4,470.6M, revenue $662.8M, free cash flow $11.5M, Quality rating 5.0, intrinsic value $0.9, 1Y return 60.6%. Metrics show revenue growth 14.3%, FCF margin 1.7%, gross margin 74.5%, ROIC 17.3%, total debt to equity 121.6%. Despite challenges, momentum offers speculative value analysis.
Key Catalysts
- Strong 1Y return 60.6% from resale market growth
- Revenue growth 14.3% in luxury segment
- High gross margin 74.5% potential
Risk Factors
- Negative free cash flow and FCF margin
- Poor ROIC 17.3% and negative equity
Stock #7: Frontdoor, Inc. (FTDR)
| Metric | Value |
|---|---|
| Market Cap | $4,201.1M |
| Quality Rating | 8.0 |
| Intrinsic Value | $58.9 |
| 1Y Return | 4.0% |
| Revenue | $2,042.0M |
| Free Cash Flow | $346.0M |
| Revenue Growth | 11.8% |
| FCF margin | 16.9% |
| Gross margin | 54.8% |
| ROIC | 29.0% |
| Total Debt to Equity | 379.1% |
Investment Thesis
Frontdoor, Inc. (FTDR) focuses on home service plans with proptech elements, market cap $4,201.1M, revenue $2,042.0M, free cash flow $346.0M, top Quality rating 8.0, intrinsic value $58.9, 1Y return 4.0%. Strong revenue growth 11.8%, FCF margin 16.9%, gross margin 54.8%, ROIC 29.0%, but high total debt to equity 379.1%.
Key Catalysts
- Highest Quality rating 8.0 and ROIC 29.0%
- Solid free cash flow $346.0M
- Steady growth at 11.8%
Risk Factors
- Very high debt to equity 379.1%
- Modest 1Y return 4.0%
Stock #8: WillScot Holdings Corporation (WSC)
| Metric | Value |
|---|---|
| Market Cap | $3,570.9M |
| Quality Rating | 7.1 |
| Intrinsic Value | $20.9 |
| 1Y Return | -41.4% |
| Revenue | $2,318.0M |
| Free Cash Flow | $690.7M |
| Revenue Growth | (3.6%) |
| FCF margin | 29.8% |
| Gross margin | 51.3% |
| ROIC | 10.9% |
| Total Debt to Equity | 706.2% |
Investment Thesis
WillScot Holdings Corporation (WSC) leads in modular space solutions for proptech/construction, market cap $3,570.9M, revenue $2,318.0M, free cash flow $690.7M, Quality rating 7.1, intrinsic value $20.9, 1Y return -41.4%. FCF margin 29.8%, gross margin 51.3%, ROIC 10.9%, high debt 706.2%, revenue growth 3.6%.
Key Catalysts
- Exceptional free cash flow $690.7M and FCF margin 29.8%
- Reliable ROIC 10.9%
Risk Factors
- Sharp 1Y return decline -41.4%
- High debt 706.2% and negative growth
Stock #9: EverCommerce Inc. (EVCM)
| Metric | Value |
|---|---|
| Market Cap | $2,088.5M |
| Quality Rating | 6.0 |
| Intrinsic Value | $23.8 |
| 1Y Return | 7.4% |
| Revenue | $612.8M |
| Free Cash Flow | $132.0M |
| Revenue Growth | (11.6%) |
| FCF margin | 21.5% |
| Gross margin | 73.0% |
| ROIC | 3.4% |
| Total Debt to Equity | 0.8% |
Investment Thesis
EverCommerce Inc. (EVCM) offers SaaS for service businesses including property, market cap $2,088.5M, revenue $612.8M, free cash flow $132.0M, Quality rating 6.0, intrinsic value $23.8, 1Y return 7.4%. FCF margin 21.5%, gross margin 73.0%, ROIC 3.4%, low debt 0.8%, revenue growth 11.6%.
Key Catalysts
- Strong gross margin 73.0% and FCF $132.0M
- Low debt to equity 0.8%
Risk Factors
- Negative revenue growth -11.6%
- Low ROIC 3.4%
Stock #10: Soho House & Co Inc. (SHCO)
| Metric | Value |
|---|---|
| Market Cap | $1,749.3M |
| Quality Rating | 5.3 |
| Intrinsic Value | $9.8 |
| 1Y Return | 21.1% |
| Revenue | $1,285.6M |
| Free Cash Flow | $17.8M |
| Revenue Growth | 7.8% |
| FCF margin | 1.4% |
| Gross margin | (5.4%) |
| ROIC | 0.4% |
| Total Debt to Equity | (455.5%) |
Investment Thesis
Soho House & Co Inc. (SHCO) blends hospitality with real estate assets, market cap $1,749.3M, revenue $1,285.6M, free cash flow $17.8M, Quality rating 5.3, intrinsic value $9.8, 1Y return 21.1%. Revenue growth 7.8%, low FCF margin 1.4%, negative gross margin 5.4%, ROIC 0.4%, debt to equity 455.5%.
Key Catalysts
- Positive 1Y return 21.1% and growth 7.8%
- Improving free cash flow $17.8M
Risk Factors
- Negative gross margin and low ROIC
- Severe negative debt to equity
Portfolio Diversification Insights
This proptech stock watchlist clusters into real estate platforms (Z, COMP), property software (APPF, BSY, EVCM), services (FTDR, WSC), resale/logistics (REAL), and niche (GRMN, SHCO). Sector allocation favors SaaS-heavy tech 50%, services 30%, and emerging plays 20%, reducing correlation risks. High-quality leaders like APPF (ROIC 90.2%) and FTDR (Quality 8.0) balance riskier growth names like COMP (81% 1Y return). Cross-references show margin leaders (BSY 81.2% gross) complement cash flow generators (WSC $690.7M FCF), creating a diversified undervalued stocks portfolio for proptech exposure.
Market Timing & Entry Strategies
Consider entry during proptech sector dips, targeting stocks with intrinsic value premiums over 20% like GRMN $205.5 or APPF $81.7. Monitor revenue growth acceleration (e.g., COMP 24.3%) and FCF positivity. Use dollar-cost averaging for volatile names (REAL, SHCO), entering on ROIC improvements or debt reductions. Pair with ValueSense screeners for backtested timing against housing data; avoid over-leverage (WSC 706% debt) without catalysts.
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FAQ Section
How were these stocks selected?
These top 10 proptech stock picks were filtered via ValueSense criteria emphasizing Quality rating >5.0, strong margins, revenue growth, and intrinsic value upside, focusing on proptech themes for diversified stock watchlist analysis.
What's the best stock from this list?
Frontdoor, Inc. (FTDR) leads with the highest Quality rating of 8.0, ROIC 29.0%, and intrinsic value $58.9, offering balanced strength in this proptech stock picks collection.
Should I buy all these stocks or diversify?
Diversification across proptech subsectors (SaaS, services) is key; allocate based on risk tolerance, favoring high ROIC names like APPF while limiting exposure to negative FCF plays like REAL.
What are the biggest risks with these picks?
Key concerns include high debt levels (WSC 706%, FTDR 379%), negative ROIC (Z, COMP, REAL), and growth volatility; monitor housing cycles impacting proptech investment opportunities.
When is the best time to invest in these stocks?
Optimal timing aligns with sector recoveries, positive FCF inflection (e.g., COMP), or intrinsic value discounts widening; use ValueSense charting for trend confirmation in best value stocks.