10 Best Undervalued Smallmid Cap Stocks for November 2025
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 2025 market landscape is defined by volatility, sector rotation, and a renewed focus on fundamentals. Our stock picks are curated using ValueSense’s proprietary intrinsic value models, quality ratings, and deep-dive financial analysis. Each company is screened for strong fundamentals, sector relevance, and potential undervaluation based on intrinsic value calculations. We prioritize a blend of growth, profitability, and risk management, ensuring a diversified watchlist across industries such as healthcare, technology, energy, and industrials[1][2].
Featured Stock Analysis
Stock #1: BioMarin Pharmaceutical Inc. (BMRN)
| Metric | Value |
|---|---|
| Market Cap | $10.3B |
| Quality Rating | 6.7 |
| Intrinsic Value | $56.8 |
| 1Y Return | -18.7% |
| Revenue | $3,094.0M |
| Free Cash Flow | $831.4M |
| Revenue Growth | 12.5% |
| FCF margin | 26.9% |
| Gross margin | 81.3% |
| ROIC | 14.7% |
| Total Debt to Equity | 9.9% |
Investment Thesis
BioMarin Pharmaceutical is a leading rare disease biotech with a robust pipeline and established revenue base. Despite a challenging year (-18.7% 1Y return), its fundamentals remain strong, with $3.1B in revenue and a high gross margin of 81.3%. The company’s intrinsic value $56.8 suggests potential undervaluation relative to market sentiment. A quality rating of 6.7 and a healthy ROIC of 14.7% reflect operational efficiency and prudent capital allocation.
Key Catalysts
- Expansion of rare disease drug portfolio
- Strong free cash flow $831.4M supporting R&D
- Revenue growth of 12.5% year-over-year
- Low total debt to equity 9.9% enhances financial stability
Risk Factors
- High dependency on a limited number of products
- Regulatory risks inherent in biotech
- Negative 1Y return may signal market skepticism
Stock #2: The AES Corporation (AES)
| Metric | Value |
|---|---|
| Market Cap | $9,861.6M |
| Quality Rating | 5.3 |
| Intrinsic Value | $26.5 |
| 1Y Return | -13.6% |
| Revenue | $12.0B |
| Free Cash Flow | ($2,551.0M) |
| Revenue Growth | (3.2%) |
| FCF margin | (21.2%) |
| Gross margin | 38.0% |
| ROIC | 1.3% |
| Total Debt to Equity | 394.0% |
Investment Thesis
AES is a global power company with a $9.86B market cap, operating across diverse energy markets. Despite a -13.6% 1Y return and negative free cash flow, AES’s intrinsic value $26.5 and large revenue base $12.0B highlight its scale. The company’s gross margin 38.0% and focus on renewable energy transitions position it for long-term relevance, though current profitability is challenged.
Key Catalysts
- Strategic investments in renewable energy
- Potential for margin improvement as legacy assets are phased out
- Large-scale infrastructure supporting future growth
Risk Factors
- High leverage (total debt to equity: 394.0%) increases financial risk
- Negative free cash flow -$2.55B and FCF margin -21.2%
- Revenue contraction (-3.2% YoY) signals operational headwinds
Stock #3: Generac Holdings Inc. (GNRC)
| Metric | Value |
|---|---|
| Market Cap | $9,846.7M |
| Quality Rating | 5.6 |
| Intrinsic Value | $206.1 |
| 1Y Return | 1.5% |
| Revenue | $4,352.4M |
| Free Cash Flow | $416.5M |
| Revenue Growth | 5.5% |
| FCF margin | 9.6% |
| Gross margin | 39.5% |
| ROIC | 10.5% |
| Total Debt to Equity | 60.2% |
Investment Thesis
Generac is a leader in backup power solutions, benefiting from increased demand for energy resilience. With a $9.85B market cap and 1.5% 1Y return, Generac’s fundamentals include $4.35B in revenue, a 39.5% gross margin, and a quality rating of 5.6. The company’s intrinsic value $206.1 suggests significant upside potential, supported by steady revenue growth 5.5% and a healthy FCF margin 9.6%.
Key Catalysts
- Rising frequency of extreme weather events driving generator demand
- Expansion into clean energy and battery storage markets
- Strong free cash flow $416.5M for reinvestment
Risk Factors
- Cyclical demand tied to weather and economic cycles
- Moderate leverage (total debt to equity: 60.2%)
- Competition from emerging clean energy technologies
Stock #4: Donaldson Company, Inc. (DCI)
| Metric | Value |
|---|---|
| Market Cap | $9,806.7M |
| Quality Rating | 5.9 |
| Intrinsic Value | $88.4 |
| 1Y Return | 15.6% |
| Revenue | $3,690.9M |
| Free Cash Flow | $339.9M |
| Revenue Growth | 2.9% |
| FCF margin | 9.2% |
| Gross margin | 34.8% |
| ROIC | 18.0% |
| Total Debt to Equity | 45.5% |
Investment Thesis
Donaldson is an industrial filtration leader with a $9.8B market cap and a 15.6% 1Y return. The company’s steady revenue $3.69B, high ROIC 18.0%, and consistent free cash flow $339.9M reflect operational excellence. An intrinsic value of $88.4 and a quality rating of 5.9 support its inclusion as a stable, income-generating industrial pick.
Key Catalysts
- Expansion into new filtration markets
- High gross margin 34.8% and FCF margin 9.2%
- Low leverage (total debt to equity: 45.5%)
Risk Factors
- Slower revenue growth 2.9%
- Exposure to cyclical industrial demand
- Moderate quality rating may limit upside
Stock #5: Ovintiv Inc. (OVV)
| Metric | Value |
|---|---|
| Market Cap | $9,715.1M |
| Quality Rating | 5.7 |
| Intrinsic Value | $53.8 |
| 1Y Return | -3.6% |
| Revenue | $9,207.0M |
| Free Cash Flow | $1,700.0M |
| Revenue Growth | (9.7%) |
| FCF margin | 18.5% |
| Gross margin | 54.6% |
| ROIC | 5.4% |
| Total Debt to Equity | 63.6% |
Investment Thesis
Ovintiv is a diversified energy producer with a $9.7B market cap. Despite a -3.6% 1Y return and revenue contraction -9.7%, Ovintiv’s strong free cash flow $1.7B and FCF margin 18.5% highlight operational efficiency. The company’s intrinsic value $53.8 and moderate leverage (total debt to equity: 63.6%) provide a balanced risk-reward profile.
Key Catalysts
- Strategic asset portfolio in oil and natural gas
- High gross margin 54.6%
- Focus on capital discipline and debt reduction
Risk Factors
- Commodity price volatility
- Revenue decline may persist if energy prices weaken
- Moderate ROIC 5.4% limits return potential
Stock #6: 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, a leading online grocery platform, boasts a $9.68B market cap and a high quality rating 7.3. Despite a -16.4% 1Y return, Instacart’s fundamentals are strong: $3.55B in revenue, 10.5% revenue growth, and a robust FCF margin 22.0%. Its intrinsic value $61.9 and exceptionally low leverage (total debt to equity: 2.0%) highlight financial health and growth potential.
Key Catalysts
- Continued shift to online grocery shopping
- High gross margin 74.8% and ROIC 26.9%
- Strong free cash flow $779M for expansion
Risk Factors
- Intense competition in the online delivery space
- Negative 1Y return reflects market uncertainty
- Growth may slow as market matures
Stock #7: MKS Instruments, Inc. (MKSI)
| Metric | Value |
|---|---|
| Market Cap | $9,657.3M |
| Quality Rating | 6.7 |
| Intrinsic Value | $167.7 |
| 1Y Return | 45.3% |
| Revenue | $3,740.0M |
| Free Cash Flow | $525.0M |
| Revenue Growth | 4.5% |
| FCF margin | 14.0% |
| Gross margin | 47.3% |
| ROIC | 7.2% |
| Total Debt to Equity | 184.0% |
Investment Thesis
MKS Instruments is a technology and industrial solutions provider with a $9.65B market cap and an impressive 45.3% 1Y return. The company’s $3.74B revenue, 4.5% growth, and strong free cash flow $525M are complemented by a quality rating of 6.7 and an intrinsic value of $167.7. MKS’s gross margin 47.3% and moderate leverage (total debt to equity: 184.0%) support its growth trajectory.
Key Catalysts
- Exposure to semiconductor and advanced manufacturing sectors
- High FCF margin 14.0%
- Strong recent stock performance
Risk Factors
- High leverage increases financial risk
- Cyclical demand in technology markets
- Moderate ROIC 7.2%
Stock #8: HF Sinclair Corporation (DINO)
| Metric | Value |
|---|---|
| Market Cap | $9,623.3M |
| Quality Rating | 6.5 |
| Intrinsic Value | $65.4 |
| 1Y Return | 37.5% |
| Revenue | $26.9B |
| Free Cash Flow | $917.5M |
| Revenue Growth | (9.5%) |
| FCF margin | 3.4% |
| Gross margin | 9.8% |
| ROIC | 5.9% |
| Total Debt to Equity | 4.1% |
Investment Thesis
HF Sinclair is a diversified energy and refining company with a $9.62B market cap and a 37.5% 1Y return. Despite revenue contraction -9.5%, the company’s $26.9B revenue base, strong free cash flow $917.5M, and low leverage (total debt to equity: 4.1%) provide stability. An intrinsic value of $65.4 and a quality rating of 6.5 support its inclusion as a value-oriented energy pick.
Key Catalysts
- Efficient capital allocation and low debt
- High gross margin 9.8% for the sector
- Focus on operational efficiency
Risk Factors
- Exposure to refining margin volatility
- Revenue decline may persist
- Low sector gross margin limits profitability
Stock #9: Alcoa Corporation (AA)
| Metric | Value |
|---|---|
| Market Cap | $9,523.3M |
| Quality Rating | 6.4 |
| Intrinsic Value | $85.8 |
| 1Y Return | -7.9% |
| Revenue | $12.8B |
| Free Cash Flow | $651.0M |
| Revenue Growth | 16.1% |
| FCF margin | 5.1% |
| Gross margin | 14.9% |
| ROIC | 5.4% |
| Total Debt to Equity | 80.2% |
Investment Thesis
Alcoa is a global aluminum producer with a $9.52B market cap and a -7.9% 1Y return. The company’s $12.8B revenue, 16.1% growth, and $651M free cash flow highlight its cyclical upside. An intrinsic value of $85.8 and a quality rating of 6.4 position Alcoa as a potential beneficiary of commodity upswings.
Key Catalysts
- Rising demand for aluminum in green technologies
- Strong revenue growth and improving FCF
- Moderate leverage (total debt to equity: 80.2%)
Risk Factors
- Commodity price volatility
- Low gross margin 14.9%
- Cyclical earnings profile
Stock #10: StandardAero, Inc. (SARO)
| Metric | Value |
|---|---|
| Market Cap | $9,488.8M |
| Quality Rating | 5.4 |
| Intrinsic Value | $31.7 |
| 1Y Return | 0.1% |
| Revenue | $5,618.8M |
| Free Cash Flow | ($81.8M) |
| Revenue Growth | 16.1% |
| FCF margin | (1.5%) |
| Gross margin | 13.7% |
| ROIC | 7.4% |
| Total Debt to Equity | 101.3% |
Investment Thesis
StandardAero is an aviation services provider with a $9.48B market cap and a flat 1Y return 0.1%. The company’s $5.6B revenue, 16.1% growth, and moderate quality rating 5.4 are offset by negative free cash flow -$81.8M and high leverage (total debt to equity: 101.3%). However, its intrinsic value $31.7 and sector exposure offer diversification benefits.
Key Catalysts
- Growth in aviation services and maintenance
- Revenue growth outpaces sector averages
- Industry tailwinds from increased air travel
Risk Factors
- Negative FCF and high leverage
- Low gross margin 13.7%
- Moderate quality rating
Portfolio Diversification Insights
This watchlist spans healthcare, technology, energy, industrials, and consumer sectors, offering a balanced approach to risk and opportunity. High-growth names like Instacart and MKS Instruments are complemented by stable cash generators such as Donaldson and HF Sinclair. Exposure to commodities (Alcoa, Ovintiv) and defensive healthcare (BioMarin) further diversifies sector risk, while varying leverage and margin profiles help manage volatility.
Market Timing & Entry Strategies
Entry timing should consider sector rotation, macroeconomic trends, and company-specific catalysts. For growth stocks, monitoring earnings reports and industry news can help identify optimal entry points. Value-oriented picks may be best accumulated during market pullbacks or when trading below intrinsic value. Diversifying entry over time (dollar-cost averaging) can help mitigate timing risk.
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
- How VKTX (Viking Therapeutics) Makes Money in 2025: A Deep-Dive With Income Statement
- How NET (Cloudflare) Makes Money in 2025: A Deep-Dive With Income Statement
- How MASS (908 Devices) Makes Money in 2025: A Deep-Dive With Income Statement
- How CRVO (CervoMed) Makes Money in 2025: A Deep-Dive With Income Statement
- How GILD (Gilead Sciences) Makes Money in 2025: A Deep-Dive With Income Statement
FAQ Section
Q1: How were these stocks selected?
Stocks were chosen using ValueSense’s proprietary intrinsic value models, quality ratings, and a fundamental screen for strong financials, sector relevance, and potential undervaluation[1][2].
Q2: What's the best stock from this list?
Each stock offers unique strengths; for example, Instacart (CART) has the highest quality rating 7.3, while MKS Instruments (MKSI) delivered the strongest 1Y return 45.3%. The "best" depends on individual investment goals and risk tolerance.
Q3: Should I buy all these stocks or diversify?
Diversification across sectors and risk profiles is a key principle of portfolio construction. This watchlist is designed to provide a diversified set of ideas, not a recommendation to buy all at once.
Q4: What are the biggest risks with these picks?
Risks include sector-specific headwinds (e.g., biotech regulation, commodity price swings), high leverage for some companies, and negative free cash flow or returns for others. Always review each company’s risk profile before making decisions.
Q5: When is the best time to invest in these stocks?
Optimal timing varies by stock and sector. Monitoring earnings, macro trends, and intrinsic value gaps can help identify attractive entry points. Consider dollar-cost averaging to reduce timing risk.