10 Best Undervalued Smallmid Cap Moat Stocks for November 2025
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Market Overview & Selection Criteria
The current market landscape in late 2025 is defined by sector rotation, persistent macroeconomic uncertainty, and a renewed focus on profitability and cash flow. Our selection methodology leverages ValueSense’s proprietary intrinsic value models, quality ratings, and fundamental screeners to identify stocks with strong financial health, attractive valuations, and sectoral diversification. Each stock in this list is evaluated for its growth prospects, risk profile, and alignment with value investing principles[1][2].
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 robust market cap of $9.68B. Despite a challenging year (-16.4% 1Y return), the company demonstrates solid fundamentals: $3.55B in revenue, a high gross margin of 74.8%, and a strong free cash flow margin of 22%. The quality rating of 7.3 and an intrinsic value estimate of $61.9 suggest the stock is undervalued relative to its fundamentals. Instacart’s efficient operations are reflected in its ROIC of 26.9%, indicating effective capital allocation.
Key Catalysts
- Continued shift to online grocery shopping and delivery.
- Expansion of partnerships with major retailers.
- High free cash flow supporting reinvestment and potential shareholder returns.
- Strong gross margins and operational leverage.
Risk Factors
- Competitive pressure from large e-commerce and retail players.
- Margin compression if delivery costs rise or promotional spending increases.
- Slower-than-expected revenue growth (10.5% YoY).
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 (EDU) is a leading provider in China’s education sector, with a market cap of $9.46B. The company has navigated regulatory headwinds, posting $4.99B in revenue and a free cash flow of $660.9M. While the 1Y return is -4.9%, the intrinsic value of $113.0 points to significant upside. A quality rating of 5.6 and a gross margin of 55.1% reflect resilience, though the total debt to equity of 18.4% is higher than some peers.
Key Catalysts
- Recovery in Chinese education demand post-regulatory reforms.
- Diversification into adult education and overseas test prep.
- Strong free cash flow generation.
Risk Factors
- Regulatory uncertainty in China’s education sector.
- Slower revenue growth (7.3% YoY) compared to historical averages.
- Moderate quality rating and sector volatility.
Stock #3: 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 is a major airport operator in Latin America, boasting a market cap of $9.07B and a 12.3% 1Y return. The company’s revenue of MX$35.3B and free cash flow of MX$9.18B highlight its cash-generative business model. With a quality rating of 7.2, gross margin of 71.4%, and ROIC of 22.1%, ASR is well-positioned to benefit from travel recovery and infrastructure expansion. The intrinsic value of $502.3 indicates potential undervaluation.
Key Catalysts
- Ongoing recovery in air travel and tourism.
- Expansion of airport concessions and infrastructure investments.
- High free cash flow margins 26%.
Risk Factors
- Exposure to macroeconomic and currency risks in Latin America.
- Regulatory and concession renewal uncertainties.
- Elevated total debt to equity 48.1%.
Stock #4: 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 is a global leader in life sciences and diagnostics, with a market cap of $8.60B. Despite a -10.8% 1Y return and slightly negative revenue growth -0.9%, the company maintains a quality rating of 5.6 and an intrinsic value of $404.5. Bio-Rad’s gross margin of 52.3% and ROIC of 15.8% reflect operational strength, while its free cash flow margin of 13.2% supports ongoing R&D and innovation.
Key Catalysts
- Innovation in diagnostics and research tools.
- Expansion into emerging markets and new product launches.
- Resilient free cash flow generation.
Risk Factors
- Revenue contraction and sector competition.
- Currency headwinds and global supply chain risks.
- Negative total debt to equity -6.6% suggests net cash position but may reflect accounting adjustments.
Stock #5: APA Corporation (APA)
| Metric | Value |
|---|---|
| Market Cap | $8,199.3M |
| Quality Rating | 6.6 |
| Intrinsic Value | $46.0 |
| 1Y Return | -3.0% |
| Revenue | $10.1B |
| Free Cash Flow | $1,634.0M |
| Revenue Growth | 12.1% |
| FCF margin | 16.2% |
| Gross margin | 55.1% |
| ROIC | 22.9% |
| Total Debt to Equity | 67.6% |
Investment Thesis
APA Corporation is a diversified energy company with a market cap of $8.20B. The company’s 12.1% revenue growth and free cash flow of $1.63B underscore its ability to generate cash in a volatile commodity environment. APA’s quality rating of 6.6, gross margin of 55.1%, and ROIC of 22.9% highlight operational efficiency. The intrinsic value of $46.0 suggests the stock may be undervalued.
Key Catalysts
- Exposure to oil and gas price recovery.
- Ongoing cost discipline and capital allocation.
- Strong free cash flow supporting dividends and buybacks.
Risk Factors
- Commodity price volatility.
- High total debt to equity 67.6%.
- Environmental and regulatory risks.
Stock #6: Match Group, Inc. (MTCH)
| Metric | Value |
|---|---|
| Market Cap | $7,902.9M |
| Quality Rating | 6.3 |
| Intrinsic Value | $65.4 |
| 1Y Return | -9.7% |
| Revenue | $3,450.6M |
| Free Cash Flow | $907.6M |
| Revenue Growth | (0.6%) |
| FCF margin | 26.3% |
| Gross margin | 71.1% |
| ROIC | 29.6% |
| Total Debt to Equity | (1,485.7%) |
Investment Thesis
Match Group, a leader in online dating platforms, has a market cap of $7.90B. Despite a -9.7% 1Y return and flat revenue growth -0.6%, the company’s free cash flow margin of 26.3% and gross margin of 71.1% are impressive. The quality rating is 6.3, and the intrinsic value is $65.4. Match’s ROIC of 29.6% signals strong capital efficiency, though the total debt to equity of -1,485.7% reflects a highly leveraged balance sheet.
Key Catalysts
- Growth in global online dating adoption.
- Monetization of new features and platforms.
- High free cash flow and margin profile.
Risk Factors
- Intense competition and user acquisition costs.
- High leverage and financial risk.
- Sluggish revenue growth.
Stock #7: Dropbox, Inc. (DBX)
| Metric | Value |
|---|---|
| Market Cap | $7,899.6M |
| Quality Rating | 6.8 |
| Intrinsic Value | $62.1 |
| 1Y Return | 12.2% |
| Revenue | $2,532.8M |
| Free Cash Flow | $892.8M |
| Revenue Growth | (0.0%) |
| FCF margin | 35.2% |
| Gross margin | 81.3% |
| ROIC | 59.5% |
| Total Debt to Equity | (233.1%) |
Investment Thesis
Dropbox is a cloud storage and collaboration platform with a market cap of $7.90B. The company’s free cash flow margin of 35.2% and gross margin of 81.3% are among the highest in the sector. Despite flat revenue growth 0.0%, Dropbox’s ROIC of 59.5% and quality rating of 6.8 highlight operational excellence. The intrinsic value of $62.1 suggests upside potential.
Key Catalysts
- Expansion into enterprise collaboration tools.
- High-margin recurring revenue model.
- Strong free cash flow generation.
Risk Factors
- Slowing top-line growth.
- Negative total debt to equity -233.1% indicates net cash, but warrants review.
- Competitive pressures from larger cloud providers.
Stock #8: Paylocity Holding Corporation (PCTY)
| Metric | Value |
|---|---|
| Market Cap | $7,815.3M |
| Quality Rating | 6.9 |
| Intrinsic Value | $175.7 |
| 1Y Return | -23.5% |
| Revenue | $1,595.2M |
| Free Cash Flow | $324.0M |
| Revenue Growth | 13.7% |
| FCF margin | 20.3% |
| Gross margin | 68.8% |
| ROIC | 32.2% |
| Total Debt to Equity | 17.7% |
Investment Thesis
Paylocity is a cloud-based payroll and HR solutions provider with a market cap of $7.82B. The company’s 13.7% revenue growth, free cash flow margin of 20.3%, and gross margin of 68.8% reflect a scalable SaaS business model. With a quality rating of 6.9 and intrinsic value of $175.7, Paylocity is positioned for continued growth despite a -23.5% 1Y return.
Key Catalysts
- Expansion in mid-market HR tech adoption.
- Product innovation and cross-selling opportunities.
- High recurring revenue and customer retention.
Risk Factors
- Competitive HR software landscape.
- Economic sensitivity affecting SMB clients.
- Moderate leverage (total debt to equity 17.7%).
Stock #9: Corcept Therapeutics Incorporated (CORT)
| Metric | Value |
|---|---|
| Market Cap | $7,649.0M |
| Quality Rating | 6.8 |
| Intrinsic Value | $101.4 |
| 1Y Return | 50.0% |
| Revenue | $716.1M |
| Free Cash Flow | $180.3M |
| Revenue Growth | 25.7% |
| FCF margin | 25.2% |
| Gross margin | 98.4% |
| ROIC | 187.7% |
| Total Debt to Equity | 1.0% |
Investment Thesis
Corcept Therapeutics is a specialty pharma company with a market cap of $7.65B and an impressive 1Y return of 50%. The company’s revenue growth of 25.7%, gross margin of 98.4%, and ROIC of 187.7% are standout metrics. The quality rating is 6.8, and the intrinsic value is $101.4. Corcept’s free cash flow margin of 25.2% supports ongoing R&D and pipeline expansion.
Key Catalysts
- Strong pipeline and product innovation.
- High profitability and cash flow.
- Expansion into new indications and markets.
Risk Factors
- Clinical and regulatory risks.
- Patent expirations and competition.
- Concentration risk in lead products.
Stock #10: Allison Transmission Holdings, Inc. (ALSN)
| Metric | Value |
|---|---|
| Market Cap | $6,938.2M |
| Quality Rating | 6.9 |
| Intrinsic Value | $94.8 |
| 1Y Return | -22.4% |
| Revenue | $3,069.0M |
| Free Cash Flow | $861.0M |
| Revenue Growth | (4.2%) |
| FCF margin | 28.1% |
| Gross margin | 48.3% |
| ROIC | 18.5% |
| Total Debt to Equity | 130.3% |
Investment Thesis
Allison Transmission is a leader in commercial vehicle propulsion solutions, with a market cap of $6.94B. Despite a -22.4% 1Y return and revenue contraction -4.2%, Allison’s free cash flow margin of 28.1% and gross margin of 48.3% support its capital return strategy. The quality rating is 6.9, and the intrinsic value is $94.8.
Key Catalysts
- Growth in electrified and hybrid vehicle markets.
- Aftermarket and international expansion.
- Strong free cash flow supporting dividends and buybacks.
Risk Factors
- Cyclical demand in commercial vehicles.
- High leverage (total debt to equity 130.3%).
- Competitive pressures from new propulsion technologies.
Portfolio Diversification Insights
This watchlist spans technology (DBX, PCTY, MTCH), healthcare (BIO, CORT), consumer (CART, EDU), industrials (ALSN, ASR), and energy (APA), providing sectoral balance and reducing single-industry risk. The mix of growth, value, and income-oriented stocks helps buffer against market volatility and macroeconomic shocks, while exposure to both US and international markets further enhances diversification.
Market Timing & Entry Strategies
Given the current market volatility, staggered entry (dollar-cost averaging) and sector rotation awareness are prudent. Investors may consider monitoring technical support levels and macroeconomic indicators before initiating positions. ValueSense’s intrinsic value tools can help identify entry points where the margin of safety is highest, while regular portfolio reviews ensure alignment with evolving market conditions[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?
Stocks were chosen using ValueSense’s proprietary screeners, focusing on intrinsic value, quality ratings, and fundamental metrics such as revenue growth, free cash flow, and return on invested capital[1][2].
Q2: What’s the best stock from this list?
No single stock is universally “best”; each offers unique strengths. For example, Corcept Therapeutics (CORT) has delivered the highest 1Y return, while Dropbox (DBX) and Instacart (CART) show strong margins and operational efficiency.
Q3: Should I buy all these stocks or diversify?
Diversification is key to managing risk. This list is designed for educational purposes to illustrate how a diversified portfolio can balance sector exposure and risk factors.
Q4: What are the biggest risks with these picks?
Risks include sector-specific headwinds, regulatory changes (notably for EDU and APA), competitive pressures, and macroeconomic volatility. Each stock’s risk profile is detailed in its analysis section.
Q5: When is the best time to invest in these stocks?
Optimal timing depends on individual risk tolerance and market conditions. ValueSense’s intrinsic value and quality ratings can help identify attractive entry points, but staggered investing and regular review are recommended for risk management.
For more in-depth analysis and the latest updates, visit ValueSense and explore our full suite of research tools.