10 Best Supplychaintech for January 2026
Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io
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 supply chain tech sector continues to evolve amid global trade dynamics and digital transformation demands, with companies leveraging AI, logistics software, and e-commerce infrastructure for efficiency gains. This watchlist features 10 top supply chain tech stock picks selected using ValueSense's proprietary methodology, focusing on intrinsic value comparisons, quality ratings, ROIC, revenue growth, and FCF margins to identify undervalued opportunities. Stocks were screened for strong fundamentals in supply chain software, marketplaces, and logistics platforms, prioritizing those trading significantly above or below their calculated intrinsic values for educational analysis.
Featured Stock Analysis
Stock #1: Amazon.com, Inc. (AMZN)
| Metric | Value |
|---|---|
| Market Cap | $2,408.9B |
| Quality Rating | 6.1 |
| Intrinsic Value | $88.0 |
| 1Y Return | 2.9% |
| Revenue | $691.3B |
| Free Cash Flow | $10.6B |
| Revenue Growth | 11.5% |
| FCF margin | 1.5% |
| Gross margin | 50.5% |
| ROIC | 15.4% |
| Total Debt to Equity | 36.6% |
Investment Thesis
Amazon.com, Inc. (AMZN) stands as a dominant force in e-commerce and cloud computing, with a massive Market Cap of $2,408.9B and Revenue of $691.3B. Despite a modest 1Y Return of 2.9%, its Quality rating of 6.1 reflects solid operational efficiency, including a Gross margin of 50.5% and ROIC of 15.4%. The Intrinsic value of $88.0 suggests potential overvaluation at current levels, but robust Revenue growth of 11.5% and Free Cash Flow of $10.6B (with FCF margin at 1.5%) underscore its scale in supply chain logistics through AWS and fulfillment networks. ValueSense analysis highlights AMZN's role in supply chain tech as a benchmark for high-volume distribution.
Key Catalysts
- Strong Revenue growth at 11.5% driven by e-commerce expansion and AWS cloud services.
- High Gross margin of 50.5% supporting scalability in logistics infrastructure.
- ROIC of 15.4% indicating efficient capital use in global supply chains.
Risk Factors
- Elevated Total Debt to Equity at 36.6% amid competitive pressures.
- Low FCF margin of 1.5% relative to scale, vulnerable to margin compression.
- Intrinsic value at $88.0 signals possible downside if growth slows.
Stock #2: Shopify Inc. (SHOP)
| Metric | Value |
|---|---|
| Market Cap | $204.1B |
| Quality Rating | 7.4 |
| Intrinsic Value | $27.9 |
| 1Y Return | 46.2% |
| Revenue | $10.7B |
| Free Cash Flow | $1,910.9M |
| Revenue Growth | 30.3% |
| FCF margin | 17.9% |
| Gross margin | 48.7% |
| ROIC | 57.9% |
| Total Debt to Equity | 8.9% |
Investment Thesis
Shopify Inc. (SHOP), with a Market Cap of $204.1B, powers e-commerce platforms essential for supply chain digitization, boasting a strong Quality rating of 7.4 and impressive 1Y Return of 46.2%. Revenue reached $10.7B with 30.3% growth, supported by Free Cash Flow of $1,910.9M and a healthy FCF margin of 17.9%. Intrinsic value at $27.9 points to overvaluation, yet ROIC of 57.9% and Gross margin of 48.7% highlight superior profitability in merchant tools and logistics integrations. This positions SHOP as a key player in modern supply chain tech for small-to-medium enterprises.
Key Catalysts
- Exceptional Revenue growth of 30.3% from expanding merchant base.
- High ROIC at 57.9% and FCF margin of 17.9% for sustained profitability.
- Low Total Debt to Equity of 8.9% enabling agile expansion.
Risk Factors
- Intrinsic value of $27.9 indicates premium pricing risks.
- Dependence on e-commerce cycles amid economic slowdowns.
- Competitive pressures in platform-based supply chain solutions.
Stock #3: 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), a digital banking innovator intersecting fintech and supply chain payments, holds a Market Cap of $82.0B and Quality rating of 6.8, with a standout 1Y Return of 60.1%. Revenue of $13.5B grew 28.5%, generating Free Cash Flow of $3,665.8M at a 27.1% FCF margin. Intrinsic value at $85.8 suggests fair valuation, bolstered by ROIC of 35.8%, Gross margin of 43.0%, and Total Debt to Equity of 23.1%. ValueSense data emphasizes NU's potential in streamlining cross-border supply chain transactions.
Key Catalysts
- Robust Revenue growth of 28.5% and 1Y Return of 60.1%.
- Strong FCF margin of 27.1% and ROIC of 35.8%.
- Expanding digital finance adoption in emerging markets.
Risk Factors
- Regulatory risks in fintech and international expansion.
- Currency fluctuations impacting Latin American operations.
- Moderate Total Debt to Equity at 23.1%.
Stock #4: Manhattan Associates, Inc. (MANH)
| Metric | Value |
|---|---|
| Market Cap | $10.1B |
| Quality Rating | 7.2 |
| Intrinsic Value | $112.1 |
| 1Y Return | -37.8% |
| Revenue | $1,066.8M |
| Free Cash Flow | $333.2M |
| Revenue Growth | 4.1% |
| FCF margin | 31.2% |
| Gross margin | 56.1% |
| ROIC | 66.6% |
| Total Debt to Equity | 15.4% |
Investment Thesis
Manhattan Associates, Inc. (MANH) specializes in supply chain execution software, with a Market Cap of $10.1B and Quality rating of 7.2. Despite a 1Y Return of -37.8%, Revenue of $1,066.8M shows 4.1% growth, with Free Cash Flow at $333.2M (31.2% FCF margin) and top-tier ROIC of 66.6%. Intrinsic value of $112.1 indicates undervaluation potential, supported by Gross margin of 56.1% and Total Debt to Equity of 15.4%. This makes MANH a focused play in warehouse and logistics optimization.
Key Catalysts
- Exceptional ROIC of 66.6% and FCF margin of 31.2%.
- High Gross margin at 56.1% from software scalability.
- Supply chain software demand in automation era.
Risk Factors
- Negative 1Y Return of -37.8% signaling volatility.
- Slower Revenue growth at 4.1%.
- Market share competition in enterprise software.
Stock #5: The Descartes Systems Group Inc. (DSGX)
| Metric | Value |
|---|---|
| Market Cap | $7,374.4M |
| Quality Rating | 6.7 |
| Intrinsic Value | $66.8 |
| 1Y Return | -25.0% |
| Revenue | $701.8M |
| Free Cash Flow | $244.0M |
| Revenue Growth | 11.3% |
| FCF margin | 34.8% |
| Gross margin | 73.9% |
| ROIC | 10.7% |
| Total Debt to Equity | 0.5% |
Investment Thesis
The Descartes Systems Group Inc. (DSGX) provides logistics network software, featuring a Market Cap of $7,374.4M and Quality rating of 6.7. 1Y Return of -25.0% contrasts with Revenue growth of 11.3% to $701.8M, Free Cash Flow of $244.0M (34.8% FCF margin), and elite Gross margin of 73.9%. Intrinsic value at $66.8 and low Total Debt to Equity of 0.5% highlight balance sheet strength, with ROIC at 10.7%. Ideal for global trade compliance in supply chains.
Key Catalysts
- Outstanding Gross margin of 73.9% and FCF margin of 34.8%.
- Steady Revenue growth of 11.3% in logistics tech.
- Minimal Total Debt to Equity at 0.5% for financial flexibility.
Risk Factors
- 1Y Return decline of -25.0%.
- Lower ROIC of 10.7% relative to peers.
- Dependence on trade volume fluctuations.
Most investors waste time on the wrong metrics. We've spent 10,000+ hours perfecting our value investing engine to find what actually matters.
Want to see what we'll uncover next - before everyone else does?
Find Hidden Gems First!
Stock #6: Ingram Micro Holding Corporation (INGM)
| Metric | Value |
|---|---|
| Market Cap | $5,038.6M |
| Quality Rating | 4.8 |
| Intrinsic Value | $123.2 |
| 1Y Return | 8.5% |
| Revenue | $51.0B |
| Free Cash Flow | $98.9M |
| Revenue Growth | 7.1% |
| FCF margin | 0.2% |
| Gross margin | 6.8% |
| ROIC | 8.6% |
| Total Debt to Equity | 29.6% |
Investment Thesis
Ingram Micro Holding Corporation (INGM), a tech distributor pivotal to supply chains, has a Market Cap of $5,038.6M and Quality rating of 4.8. 1Y Return of 8.5% accompanies Revenue of $51.0B (7.1% growth), but Free Cash Flow is $98.9M (0.2% FCF margin) with Gross margin at 6.8% and ROIC of 8.6%. Intrinsic value of $123.2 suggests upside, despite Total Debt to Equity of 29.6%. Analysis focuses on its distribution network scale.
Key Catalysts
- Large-scale Revenue of $51.0B with 7.1% growth.
- Intrinsic value at $123.2 indicating value opportunity.
- Essential role in global tech supply distribution.
Risk Factors
- Low Quality rating of 4.8 and FCF margin of 0.2%.
- Thin Gross margin at 6.8%.
- Higher Total Debt to Equity of 29.6%.
Stock #7: SPS Commerce, Inc. (SPSC)
| Metric | Value |
|---|---|
| Market Cap | $3,379.3M |
| Quality Rating | 6.8 |
| Intrinsic Value | $121.3 |
| 1Y Return | -51.9% |
| Revenue | $729.8M |
| Free Cash Flow | $148.4M |
| Revenue Growth | 19.3% |
| FCF margin | 20.3% |
| Gross margin | 68.4% |
| ROIC | 9.2% |
| Total Debt to Equity | 1.0% |
Investment Thesis
SPS Commerce, Inc. (SPSC) offers cloud supply chain solutions with Market Cap of $3,379.3M and Quality rating of 6.8. 1Y Return of -51.9% offsets 19.3% Revenue growth to $729.8M, Free Cash Flow of $148.4M (20.3% FCF margin), Gross margin of 68.4%, and low Total Debt to Equity of 1.0%. Intrinsic value at $121.3 and ROIC of 9.2% position it for recovery in EDI and fulfillment tech.
Key Catalysts
- Solid Revenue growth of 19.3% and FCF margin of 20.3%.
- High Gross margin at 68.4%.
- Low debt with Total Debt to Equity of 1.0%.
Risk Factors
- Sharp 1Y Return drop of -51.9%.
- Moderate ROIC at 9.2%.
- Competition in cloud-based supply chain networks.
Stock #8: GigaCloud Technology Inc. (GCT)
| Metric | Value |
|---|---|
| Market Cap | $1,477.9M |
| Quality Rating | 7.5 |
| Intrinsic Value | $138.0 |
| 1Y Return | 103.4% |
| Revenue | $1,222.9M |
| Free Cash Flow | $188.1M |
| Revenue Growth | 10.2% |
| FCF margin | 15.4% |
| Gross margin | 23.1% |
| ROIC | 21.3% |
| Total Debt to Equity | 101.0% |
Investment Thesis
GigaCloud Technology Inc. (GCT) operates a B2B marketplace for supply chain, with Market Cap of $1,477.9M and top Quality rating of 7.5. Exceptional 1Y Return of 103.4% pairs with Revenue of $1,222.9M (10.2% growth), Free Cash Flow $188.1M (15.4% FCF margin), and ROIC of 21.3%. Intrinsic value at $138.0 amid Total Debt to Equity of 101.0% highlights growth in cross-border logistics.
Key Catalysts
- Stellar 1Y Return of 103.4% and Quality rating of 7.5.
- ROIC of 21.3% and FCF margin of 15.4%.
- Marketplace expansion in global supply chains.
Risk Factors
- High Total Debt to Equity at 101.0%.
- Lower Gross margin of 23.1%.
- Volatility in B2B e-commerce demand.
Stock #9: Karooooo Ltd. (KARO)
| Metric | Value |
|---|---|
| Market Cap | $1,384.9M |
| Quality Rating | 7.3 |
| Intrinsic Value | $60.5 |
| 1Y Return | -2.5% |
| Revenue | ZAR 4,999.8M |
| Free Cash Flow | ZAR 1,344.9M |
| Revenue Growth | 14.8% |
| FCF margin | 26.9% |
| Gross margin | 69.4% |
| ROIC | 34.9% |
| Total Debt to Equity | 21.5% |
Investment Thesis
Karooooo Ltd. (KARO) delivers fleet management tech for logistics, with Market Cap of $1,384.9M and Quality rating of 7.3. 1Y Return of -2.5% belies Revenue of ZAR 4,999.8M (14.8% growth), Free Cash Flow ZAR 1,344.9M (26.9% FCF margin), Gross margin 69.4%, and ROIC 34.9%. Intrinsic value $60.5 and Total Debt to Equity 21.5% support its African supply chain focus.
Key Catalysts
- Strong Revenue growth 14.8% and FCF margin 26.9%.
- High ROIC 34.9% and Gross margin 69.4%.
- Growth in emerging market logistics.
Risk Factors
- Slight 1Y Return decline of -2.5%.
- Currency risks with ZAR-denominated metrics.
- Regional economic dependencies.
Stock #10: Full Truck Alliance Co. Ltd. (YMM)
| Metric | Value |
|---|---|
| Market Cap | $578.1M |
| Quality Rating | 6.4 |
| Intrinsic Value | $4,364.0 |
| 1Y Return | 4.0% |
| Revenue | CN¥12.5B |
| Free Cash Flow | CN¥0.0 |
| Revenue Growth | 19.1% |
| FCF margin | 0.0% |
| Gross margin | 70.1% |
| ROIC | 34.1% |
| Total Debt to Equity | 0.1% |
Investment Thesis
Full Truck Alliance Co. Ltd. (YMM) runs a trucking platform disrupting logistics, with Market Cap $578.1M and Quality rating 6.4. 1Y Return 4.0%, Revenue CN¥12.5B (19.1% growth), Gross margin 70.1%, ROIC 34.1%, but Free Cash Flow CN¥0.0 (0.0% FCF margin). Extreme Intrinsic value $4,364.0 and minimal Total Debt to Equity 0.1% flag massive undervaluation potential in China's supply chain digitization.
Key Catalysts
- High Revenue growth 19.1% and ROIC 34.1%.
- Strong Gross margin 70.1%.
- Intrinsic value $4,364.0 suggesting deep value.
Risk Factors
- Zero FCF margin at 0.0%.
- Geopolitical risks in China operations.
- Platform monetization challenges.
Portfolio Diversification Insights
These 10 supply chain tech stock picks offer balanced exposure across e-commerce giants (AMZN, SHOP), fintech enablers (NU), software specialists (MANH, DSGX, SPSC), distributors (INGM), marketplaces (GCT, YMM), and niche logistics (KARO). Sector allocation leans heavily toward technology 90%, with mid-to-large caps dominating for stability, complemented by high-growth smaller names like GCT and YMM. High ROIC leaders (MANH, SHOP) pair with value plays (YMM, INGM), reducing correlation risks—e.g., AMZN's scale hedges GCT's volatility—while low-debt profiles (DSGX, YMM) enhance resilience. Cross-references show synergy: logistics software (MANH, DSGX) boosts platforms like SHOP and GCT.
Market Timing & Entry Strategies
Consider positions during supply chain disruptions or earnings beats highlighting digitization, targeting entries near intrinsic value thresholds (e.g., monitor AMZN below $88, YMM for extreme upside). Dollar-cost average into high-quality names like SHOP (7.4 rating) on pullbacks from peaks, using 1Y Return trends for momentum (favor NU's 60.1%). Watch revenue growth above 15% (SHOP, NU, SPSC) for conviction, avoiding high-debt entries (GCT). Scale in over quarters, aligning with ValueSense screeners for backtested timing.
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!
More Articles You Might Like
- Nelson Peltz - Trian Fund Management Portfolio Q3'2025: Top Holdings & Recent Changes
- Principles for Dealing with the Changing World Order by Ray Dalio
- The Ascent of Money by Niall Ferguson
- Principles for Navigating Big Debt Crises by Ray Dalio
- Influence: The Psychology of Persuasion by Robert B. Cialdini Ph.D.
FAQ Section
How were these stocks selected?
These supply chain tech stock picks were chosen via ValueSense criteria emphasizing intrinsic value, quality ratings above 4.8, strong ROIC, revenue growth, and FCF metrics, focusing on undervalued opportunities in logistics and e-commerce.
What's the best stock from this list?
GigaCloud Technology (GCT) leads with a 7.5 Quality rating, 103.4% 1Y Return, and solid ROIC of 21.3%, though "best" depends on risk tolerance—compare via intrinsic value like YMM's extreme $4,364.0.
Should I buy all these stocks or diversify?
Diversify across the list for balanced supply chain tech exposure, allocating to high-conviction names (SHOP, MANH for ROIC) while limiting volatile ones (SPSC, GCT); use sector weighting to mitigate overlap.
What are the biggest risks with these picks?
Key risks include negative 1Y Returns (MANH -37.8%, SPSC -51.9%), low FCF margins (INGM 0.2%, YMM 0.0%), high debt (GCT 101.0%), and macroeconomic factors like trade tensions affecting supply chains.
When is the best time to invest in these stocks?
Optimal timing aligns with dips toward intrinsic values (e.g., SHOP at $27.9), post-earnings growth confirmations (>15% revenue), or sector catalysts like AI logistics adoption—track via ValueSense charting tools.