10 Best Smallmid Cap Moat Stocks for November 2025
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Market Overview & Selection Criteria
The current market environment is defined by volatility and sector rotation, with investors seeking resilient growth and value opportunities amid macroeconomic uncertainty. Our selection methodology leverages ValueSense’s proprietary intrinsic value models, quality ratings, and fundamental analysis tools to identify stocks with strong financials, attractive valuations, and sectoral diversification[1][2]. Each pick is screened for robust free cash flow, sustainable margins, and prudent capital allocation, ensuring a balanced watchlist for educational and research purposes.
Featured Stock Analysis
Stock #1: Instacart (Maplebear Inc.) (CART)
| Metric | Value |
|---|---|
| Market Cap | $9,679.0M |
| Quality Rating | 7.3 |
| Intrinsic Value | $61.9 |
| 1Y Return | -16.4% |
| Revenue | $3,546.0M |
| Free Cash Flow | $779.0M |
| Revenue Growth | 10.5% |
| FCF margin | 22.0% |
| Gross margin | 74.8% |
| ROIC | 26.9% |
| Total Debt to Equity | 2.0% |
Investment Thesis
Instacart, operating as Maplebear Inc., stands out in the online grocery delivery sector with a market cap of $9.68B. Despite a challenging year (-16.4% 1Y return), the company demonstrates strong fundamentals: $3.55B in revenue, a robust free cash flow of $779M, and a high FCF margin of 22%. Its gross margin of 74.8% and ROIC of 26.9% highlight operational efficiency and capital discipline. The ValueSense intrinsic value estimate of $61.9 suggests potential undervaluation relative to current market sentiment.
Key Catalysts
- Expansion of partnerships with major retailers and grocers
- Increasing consumer adoption of online grocery shopping
- High gross margins supporting reinvestment and innovation
- Strong free cash flow enabling strategic flexibility
Risk Factors
- Intensifying competition from established e-commerce and logistics players
- Margin pressure from promotional activity and delivery costs
- Regulatory risks in gig economy labor models
Stock #2: New Oriental Education & Technology Group Inc. (EDU)
| Metric | Value |
|---|---|
| Market Cap | $9,459.6M |
| Quality Rating | 5.6 |
| Intrinsic Value | $113.0 |
| 1Y Return | -4.9% |
| Revenue | $4,990.5M |
| Free Cash Flow | $660.9M |
| Revenue Growth | 7.3% |
| FCF margin | 13.2% |
| Gross margin | 55.1% |
| ROIC | 17.1% |
| Total Debt to Equity | 18.4% |
Investment Thesis
New Oriental Education & Technology Group, with a $9.46B market cap, is a leading provider in China’s education sector. Despite regulatory headwinds reflected in a -4.9% 1Y return, the company maintains solid revenue of $4.99B and free cash flow of $660.9M. Its FCF margin 13.2% and gross margin 55.1% indicate resilience. The ValueSense intrinsic value of $113.0 points to a significant margin of safety for long-term investors focused on recovery and adaptation.
Key Catalysts
- Diversification into non-academic and digital education services
- Recovery in demand for premium tutoring and test prep post-regulatory reforms
- Strong brand recognition and market share in core regions
Risk Factors
- Ongoing regulatory uncertainty in China’s education sector
- Slower revenue growth 7.3% compared to historical averages
- High debt-to-equity ratio 18.4% may limit financial flexibility
Stock #3: The New York Times Company (NYT)
| Metric | Value |
|---|---|
| Market Cap | $9,308.2M |
| Quality Rating | 7.8 |
| Intrinsic Value | $30.5 |
| 1Y Return | 2.3% |
| Revenue | $2,688.6M |
| Free Cash Flow | $455.2M |
| Revenue Growth | 7.8% |
| FCF margin | 16.9% |
| Gross margin | 50.0% |
| ROIC | 24.0% |
| Total Debt to Equity | 0.0% |
Investment Thesis
The New York Times Company, a $9.31B media leader, continues to transition successfully to a digital-first model. With a 2.3% 1Y return, $2.69B in revenue, and $455.2M in free cash flow, NYT boasts a healthy FCF margin 16.9% and gross margin 50%. Its quality rating 7.8 and zero debt-to-equity ratio underscore financial strength. The ValueSense intrinsic value of $30.5 suggests the stock is fairly valued with room for upside as digital subscriptions grow.
Key Catalysts
- Growth in digital-only subscriptions and advertising revenue
- Expansion of multimedia and international content offerings
- Strong balance sheet supports strategic acquisitions
Risk Factors
- Industry-wide pressure on traditional advertising revenues
- Competition from alternative digital media platforms
- Dependence on subscription growth to offset print declines
Stock #4: Watts Water Technologies, Inc. (WTS)
| Metric | Value |
|---|---|
| Market Cap | $9,132.1M |
| Quality Rating | 7.2 |
| Intrinsic Value | $223.4 |
| 1Y Return | 43.6% |
| Revenue | $2,285.7M |
| Free Cash Flow | $316.9M |
| Revenue Growth | 3.0% |
| FCF margin | 13.9% |
| Gross margin | 48.5% |
| ROIC | 16.8% |
| Total Debt to Equity | 10.4% |
Investment Thesis
Watts Water Technologies, with a $9.13B market cap, is a key player in water quality and plumbing solutions. The company delivered a strong 43.6% 1Y return, supported by $2.29B in revenue and $316.9M in free cash flow. Its FCF margin 13.9%, gross margin 48.5%, and ROIC 16.8% reflect operational excellence. The ValueSense intrinsic value of $223.4 highlights its potential as a quality compounder in infrastructure and sustainability themes.
Key Catalysts
- Rising demand for water efficiency and safety products
- Infrastructure modernization initiatives in North America and Europe
- Margin expansion through product innovation
Risk Factors
- Exposure to cyclical construction and industrial markets
- Supply chain disruptions impacting input costs
- Moderate debt-to-equity ratio 10.4% requires monitoring
Stock #5: AppFolio, Inc. (APPF)
| Metric | Value |
|---|---|
| Market Cap | $9,131.2M |
| Quality Rating | 7.4 |
| Intrinsic Value | $110.4 |
| 1Y Return | 22.4% |
| 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, a $9.13B SaaS provider for property management, demonstrates high growth with an 18.9% revenue increase and a 22.4% 1Y return. The company’s $906.3M revenue, $211.6M free cash flow, and exceptional ROIC 90.2% signal strong capital efficiency. Its FCF margin 23.4% and gross margin 62.9% support ongoing innovation. The ValueSense intrinsic value of $110.4 suggests further upside for investors seeking exposure to digital transformation in real estate.
Key Catalysts
- Expansion of cloud-based property management solutions
- Increasing adoption among small and mid-sized property owners
- High recurring revenue and customer retention rates
Risk Factors
- Competitive SaaS landscape with rapid technological change
- Dependence on real estate market cycles
- Moderate debt-to-equity ratio 6.9% remains manageable
Stock #6: Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR)
| Metric | Value |
|---|---|
| Market Cap | $9,070.2M |
| Quality Rating | 7.2 |
| Intrinsic Value | $502.3 |
| 1Y Return | 12.3% |
| Revenue | MX$35.3B |
| Free Cash Flow | MX$9,176.2M |
| Revenue Growth | 20.9% |
| FCF margin | 26.0% |
| Gross margin | 71.4% |
| ROIC | 22.1% |
| Total Debt to Equity | 48.1% |
Investment Thesis
ASR, a $9.07B airport operator in Mexico, benefits from robust travel demand and infrastructure investments. With a 12.3% 1Y return, MX$35.3B in revenue, and MX$9.18B free cash flow, the company maintains a high FCF margin 26% and gross margin 71.4%. Its quality rating 7.2 and intrinsic value of $502.3 reflect strong fundamentals and growth prospects in Latin American aviation.
Key Catalysts
- Recovery in international and domestic air travel
- Expansion of airport concessions and services
- High margins and efficient capital allocation
Risk Factors
- Currency and geopolitical risks in Latin America
- Regulatory changes affecting airport fees and operations
- Elevated debt-to-equity ratio 48.1% requires close monitoring
Stock #7: Bio-Rad Laboratories, Inc. (BIO)
| Metric | Value |
|---|---|
| Market Cap | $8,603.2M |
| Quality Rating | 5.6 |
| Intrinsic Value | $404.5 |
| 1Y Return | -10.8% |
| Revenue | $2,557.5M |
| Free Cash Flow | $336.7M |
| Revenue Growth | (0.9%) |
| FCF margin | 13.2% |
| Gross margin | 52.3% |
| ROIC | 15.8% |
| Total Debt to Equity | (6.6%) |
Investment Thesis
Bio-Rad Laboratories, with an $8.60B market cap, is a global leader in life science research tools. Despite a -10.8% 1Y return and slight revenue contraction -0.9%, the company generates $2.56B in revenue and $336.7M in free cash flow. Its FCF margin 13.2% and gross margin 52.3% support ongoing R&D. The ValueSense intrinsic value of $404.5 and quality rating 5.6 suggest a potential turnaround as end-market demand stabilizes.
Key Catalysts
- Innovation in diagnostics and research instrumentation
- Expansion into emerging markets and new product lines
- Recovery in academic and healthcare research spending
Risk Factors
- Cyclical demand in research and healthcare sectors
- Currency fluctuations impacting international revenue
- Negative debt-to-equity ratio -6.6% reflects net cash position but warrants review
Stock #8: NICE Ltd. (NICE)
| Metric | Value |
|---|---|
| Market Cap | $8,494.8M |
| Quality Rating | 6.9 |
| Intrinsic Value | $353.0 |
| 1Y Return | -21.4% |
| Revenue | $2,838.5M |
| Free Cash Flow | $676.9M |
| Revenue Growth | 11.4% |
| FCF margin | 23.8% |
| Gross margin | 67.0% |
| ROIC | 16.4% |
| Total Debt to Equity | 14.4% |
Investment Thesis
NICE Ltd., an $8.49B software company, specializes in cloud and AI-driven customer engagement solutions. Despite a -21.4% 1Y return, NICE posted $2.84B in revenue, $676.9M free cash flow, and an FCF margin of 23.8%. Its gross margin 67% and intrinsic value of $353.0 highlight long-term potential as enterprises digitize customer service.
Key Catalysts
- Growing demand for AI-powered contact center solutions
- Expansion into global enterprise markets
- High recurring revenue and strong cash generation
Risk Factors
- Intense competition in enterprise SaaS
- Currency and macroeconomic headwinds
- Moderate debt-to-equity ratio 14.4% is manageable
Stock #9: Armstrong World Industries, Inc. (AWI)
| Metric | Value |
|---|---|
| Market Cap | $8,226.6M |
| Quality Rating | 7.3 |
| Intrinsic Value | $97.0 |
| 1Y Return | 37.0% |
| Revenue | $1,600.2M |
| Free Cash Flow | $241.7M |
| Revenue Growth | 15.1% |
| FCF margin | 15.1% |
| Gross margin | 40.5% |
| ROIC | 18.4% |
| Total Debt to Equity | 12.4% |
Investment Thesis
Armstrong World Industries, with an $8.23B market cap, is a leader in commercial and residential ceiling solutions. The company delivered a 37% 1Y return, $1.60B in revenue, and $241.7M in free cash flow. Its FCF margin 15.1%, gross margin 40.5%, and ROIC 18.4% support a strong quality rating 7.3. The ValueSense intrinsic value of $97.0 suggests continued upside as construction markets recover.
Key Catalysts
- Growth in commercial renovation and new construction
- Product innovation in acoustic and sustainable materials
- Strong balance sheet and capital allocation
Risk Factors
- Exposure to cyclical construction activity
- Raw material cost volatility
- Moderate debt-to-equity ratio 12.4% is manageable
Stock #10: SK Telecom Co.,Ltd (SKM)
| Metric | Value |
|---|---|
| Market Cap | $8,213.7M |
| Quality Rating | 6.6 |
| Intrinsic Value | $75.6 |
| 1Y Return | -11.2% |
| Revenue | â©17.8T |
| Free Cash Flow | â©2,744.5B |
| Revenue Growth | 0.1% |
| FCF margin | 15.4% |
| Gross margin | 84.4% |
| ROIC | 18.1% |
| Total Debt to Equity | 92.4% |
Investment Thesis
SK Telecom, with an $8.21B market cap, is South Korea’s largest wireless carrier. Despite an -11.2% 1Y return and flat revenue growth 0.1%, the company generates ₩17.8T in revenue and ₩2.74T in free cash flow. Its gross margin 84.4% and ROIC 18.1% are industry-leading, while the ValueSense intrinsic value of $75.6 suggests potential undervaluation as 5G and AI investments mature.
Key Catalysts
- Expansion of 5G and AI-driven telecom services
- Monetization of digital platforms and subsidiaries
- High gross margins and stable cash flows
Risk Factors
- High debt-to-equity ratio 92.4% increases financial risk
- Regulatory pressures in the telecom sector
- Currency fluctuations impacting reported results
Portfolio Diversification Insights
This watchlist spans technology, education, industrials, infrastructure, healthcare, media, and telecom, providing sectoral diversification. Exposure to both growth and value themes, as well as international markets (U.S., China, Mexico, South Korea), helps mitigate single-sector or regional risks. The mix of high-margin SaaS, essential infrastructure, and consumer services supports portfolio resilience across market cycles.
Market Timing & Entry Strategies
Consider monitoring technical trends and fundamental valuation signals before initiating positions. ValueSense’s intrinsic value tools and backtesting features can help identify attractive entry points based on historical valuation ranges and quality ratings[1][2]. Staggered entries and dollar-cost averaging may reduce timing risk, especially in volatile sectors.
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?
Stocks were chosen using ValueSense’s proprietary screening tools, focusing on intrinsic value, quality ratings, free cash flow, and sector diversification to highlight companies with strong fundamentals and potential undervaluation[1][2].
Q2: What's the best stock from this list?
Each stock offers unique strengths; the “best” depends on individual investment goals, risk tolerance, and sector preferences. ValueSense quality ratings and intrinsic value estimates can help users compare opportunities objectively.
Q3: Should I buy all these stocks or diversify?
Diversification across sectors and geographies can help manage risk. This watchlist is designed for educational purposes to illustrate how a diversified approach can balance growth and value exposures.
Q4: What are the biggest risks with these picks?
Risks include sector-specific headwinds, regulatory changes, competitive pressures, and macroeconomic volatility. Each stock analysis section outlines key risks to consider.
Q5: When is the best time to invest in these stocks?
Optimal timing varies by stock and market conditions. ValueSense’s intrinsic value tools and backtesting features can help identify attractive entry points based on historical data and valuation trends.