8 Best Basic Materials Moat Stocks for November 2025
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Market Overview & Selection Criteria
The current market landscape in 2025 is shaped by volatility in global commodities, renewed interest in defensive sectors, and a search for quality growth amid macroeconomic uncertainty. ValueSense’s methodology centers on intrinsic value analysis, quality ratings, and fundamental metrics such as revenue growth, free cash flow, and return on invested capital (ROIC)[1][2]. Stocks are selected for this watchlist based on their undervaluation relative to intrinsic value, strong financial health, and sector diversification, ensuring a balanced portfolio of high-potential opportunities.
Featured Stock Analysis
Southern Copper Corporation (SCCO)
| Metric | Value |
|---|---|
| Market Cap | $114.2B |
| Quality Rating | 8.1 |
| Intrinsic Value | $61.2 |
| 1Y Return | 30.1% |
| Revenue | $12.3B |
| Free Cash Flow | $3,829.5M |
| Revenue Growth | 12.7% |
| FCF margin | 31.0% |
| Gross margin | 53.2% |
| ROIC | 31.4% |
| Total Debt to Equity | 69.9% |
Investment Thesis
Southern Copper Corporation stands out as a leading copper producer with a robust market cap of $114.2B. Its high quality rating of 8.1 and intrinsic value of $61.2 suggest significant upside potential. The company’s impressive 1-year return of 30.1% is underpinned by strong fundamentals: $12.3B in revenue, $3.83B in free cash flow, and a 12.7% revenue growth rate. SCCO’s FCF margin 31%, gross margin 53.2%, and ROIC 31.4% reflect operational excellence and capital efficiency.
Key Catalysts
- Sustained global copper demand driven by electrification and infrastructure projects
- High free cash flow supporting shareholder returns
- Strong margins and efficient capital allocation
- Strategic expansion in Latin America
Risk Factors
- Exposure to commodity price fluctuations
- Elevated debt-to-equity ratio 69.9%
- Regulatory and geopolitical risks in mining regions
SCCO intrinsic value analysis
Newmont Corporation (NEM)
| Metric | Value |
|---|---|
| Market Cap | $88.8B |
| Quality Rating | 7.7 |
| Intrinsic Value | $77.1 |
| 1Y Return | 80.3% |
| Revenue | $21.3B |
| Free Cash Flow | $6,122.0M |
| Revenue Growth | 26.0% |
| FCF margin | 28.8% |
| Gross margin | 45.6% |
| ROIC | 14.9% |
| Total Debt to Equity | 16.9% |
Investment Thesis
Newmont Corporation, with a market cap of $88.8B, is a premier gold producer. Its quality rating of 7.7 and intrinsic value of $77.1 highlight its value proposition. The company delivered an 80.3% 1-year return, supported by $21.3B in revenue and $6.12B in free cash flow. Notably, Newmont boasts a 26% revenue growth rate, FCF margin of 28.8%, and a solid gross margin of 45.6%. Its ROIC 14.9% and low debt-to-equity ratio 16.9% reinforce its financial stability.
Key Catalysts
- Rising gold prices amid inflationary pressures
- Expansion of mining assets and reserves
- Strong free cash flow generation
- Industry-leading ESG practices
Risk Factors
- Sensitivity to gold price volatility
- Operational risks in diverse geographies
- Environmental and regulatory compliance costs
NEM fundamental analysis
BHP Group Limited (BHP)
| Metric | Value |
|---|---|
| Market Cap | $72.4B |
| Quality Rating | 6.4 |
| Intrinsic Value | $134.7 |
| 1Y Return | 4.9% |
| Revenue | $107.3B |
| Free Cash Flow | $20.7B |
| Revenue Growth | (10.1%) |
| FCF margin | 19.3% |
| Gross margin | 48.7% |
| ROIC | 28.5% |
| Total Debt to Equity | 46.9% |
Investment Thesis
BHP Group Limited is a diversified mining giant with a market cap of $72.4B. Despite a modest 1-year return of 4.9%, its intrinsic value $134.7 and scale ($107.3B revenue) make it a cornerstone for commodity exposure. The company’s quality rating is 6.4, with a gross margin of 48.7%, ROIC of 28.5%, and FCF margin of 19.3%. BHP’s negative revenue growth -10.1% reflects cyclical pressures, but its operational efficiency and global footprint remain strengths.
Key Catalysts
- Exposure to iron ore, copper, and energy transition minerals
- Cost discipline and operational scale
- Strategic investments in future-facing commodities
- Resilient free cash flow $20.7B
Risk Factors
- Commodity price cycles impacting earnings
- Moderate debt-to-equity ratio 46.9%
- Environmental and geopolitical risks
BHP stock analysis
Gold Fields Limited (GFI)
| Metric | Value |
|---|---|
| Market Cap | $34.4B |
| Quality Rating | 8.0 |
| Intrinsic Value | $34.4 |
| 1Y Return | 133.1% |
| Revenue | $10.9B |
| Free Cash Flow | $2,046.4M |
| Revenue Growth | 24.6% |
| FCF margin | 18.7% |
| Gross margin | 43.1% |
| ROIC | 42.7% |
| Total Debt to Equity | 40.9% |
Investment Thesis
Gold Fields Limited, with a market cap of $34.4B, has delivered an outstanding 1-year return of 133.1%. Its quality rating of 8.0 and intrinsic value of $34.4 signal strong fundamentals. The company reported $10.9B in revenue, $2.05B in free cash flow, and a 24.6% revenue growth rate. GFI’s FCF margin 18.7%, gross margin 43.1%, and ROIC 42.7% highlight its profitability and capital efficiency.
Key Catalysts
- Robust gold production and reserve growth
- High ROIC and efficient operations
- Strong free cash flow supporting reinvestment
- Favorable commodity price environment
Risk Factors
- Gold price volatility
- Regional mining risks
- Moderate debt-to-equity ratio 40.9%
GFI value analysis
AngloGold Ashanti Limited (AU)
| Metric | Value |
|---|---|
| Market Cap | $34.2B |
| Quality Rating | 7.9 |
| Intrinsic Value | $110.8 |
| 1Y Return | 144.6% |
| Revenue | $7,649.0M |
| Free Cash Flow | $1,786.0M |
| Revenue Growth | 3.1% |
| FCF margin | 23.3% |
| Gross margin | 42.9% |
| ROIC | 20.3% |
| Total Debt to Equity | 24.9% |
Investment Thesis
AngloGold Ashanti Limited, valued at $34.2B, posted a 1-year return of 144.6%. Its quality rating of 7.9 and intrinsic value of $110.8 reflect significant upside. The company’s $7.65B revenue, $1.79B free cash flow, and 3.1% revenue growth are complemented by a 23.3% FCF margin, 42.9% gross margin, and 20.3% ROIC.
Key Catalysts
- Expanding gold reserves and production
- Strong free cash flow generation
- Improving operational efficiency
- Low debt-to-equity ratio 24.9%
Risk Factors
- Commodity price risk
- Operational challenges in emerging markets
- Regulatory and environmental risks
AU intrinsic value analysis
Kinross Gold Corporation (KGC)
| Metric | Value |
|---|---|
| Market Cap | $28.5B |
| Quality Rating | 7.8 |
| Intrinsic Value | $18.2 |
| 1Y Return | 131.9% |
| Revenue | $6,073.8M |
| Free Cash Flow | $1,976.6M |
| Revenue Growth | 33.6% |
| FCF margin | 32.5% |
| Gross margin | 50.0% |
| ROIC | 19.9% |
| Total Debt to Equity | 16.1% |
Investment Thesis
Kinross Gold Corporation, with a market cap of $28.5B, achieved a 1-year return of 131.9%. Its quality rating of 7.8 and intrinsic value of $18.2 indicate undervaluation. Kinross reported $6.07B in revenue, $1.98B in free cash flow, and a 33.6% revenue growth rate. The company’s FCF margin 32.5%, gross margin 50%, and ROIC 19.9% support its investment case.
Key Catalysts
- High revenue and free cash flow growth
- Strong operational margins
- Expansion of mining assets
- Low debt-to-equity ratio 16.1%
Risk Factors
- Gold price fluctuations
- Operational risks in diverse regions
- Environmental compliance costs
KGC fundamental analysis
United States Lime & Minerals, Inc. (USLM)
| Metric | Value |
|---|---|
| Market Cap | $3,357.1M |
| Quality Rating | 7.9 |
| Intrinsic Value | $63.8 |
| 1Y Return | 4.0% |
| Revenue | $364.8M |
| Free Cash Flow | $104.2M |
| Revenue Growth | 20.3% |
| FCF margin | 28.6% |
| Gross margin | 48.1% |
| ROIC | 26.6% |
| Total Debt to Equity | 0.7% |
Investment Thesis
United States Lime & Minerals, Inc. is a niche player with a market cap of $3.36B. Its quality rating of 7.9 and intrinsic value of $63.8 suggest value potential. The company’s 1-year return of 4% is modest, but its $364.8M revenue, $104.2M free cash flow, and 20.3% revenue growth highlight steady performance. USLM’s FCF margin 28.6%, gross margin 48.1%, and ROIC 26.6% are notable, with an exceptionally low debt-to-equity ratio 0.7%.
Key Catalysts
- Stable demand for lime and minerals
- Strong balance sheet and low leverage
- Consistent free cash flow
- Niche market positioning
Risk Factors
- Limited growth scalability
- Commodity price risk
- Market concentration
USLM value analysis
Tecnoglass Inc. (TGLS)
| Metric | Value |
|---|---|
| Market Cap | $2,802.0M |
| Quality Rating | 7.2 |
| Intrinsic Value | $42.8 |
| 1Y Return | -12.8% |
| Revenue | $955.7M |
| Free Cash Flow | $115.2M |
| Revenue Growth | 16.9% |
| FCF margin | 12.0% |
| Gross margin | 44.7% |
| ROIC | 34.2% |
| Total Debt to Equity | 14.8% |
Investment Thesis
Tecnoglass Inc., with a market cap of $2.8B, is a manufacturer in the building materials sector. Its quality rating of 7.2 and intrinsic value of $42.8 highlight potential value. Despite a -12.8% 1-year return, the company posted $955.7M in revenue, $115.2M in free cash flow, and a 16.9% revenue growth rate. TGLS’s FCF margin 12%, gross margin 44.7%, and ROIC 34.2% indicate operational strength.
Key Catalysts
- Expansion in North and Latin American markets
- High ROIC and improving margins
- Product innovation and market share growth
- Low debt-to-equity ratio 14.8%
Risk Factors
- Cyclical demand in construction
- Margin compression risks
- Currency and geopolitical exposure
TGLS stock analysis
Portfolio Diversification Insights
This watchlist offers broad sector exposure across mining, gold, industrial minerals, and building materials. The inclusion of copper, gold, lime, and glass producers provides a hedge against sector-specific risks and commodity price swings. High-quality ratings and strong free cash flow generation are common threads, while varying debt levels and growth rates ensure a mix of stability and upside potential. Investors can benefit from diversification by balancing cyclical commodity plays with more defensive niche operators.
Market Timing & Entry Strategies
Given the cyclical nature of commodities and materials, timing entries around macroeconomic inflection points—such as infrastructure stimulus, inflationary trends, or supply constraints—can enhance portfolio returns. Monitoring intrinsic value gaps and technical support levels on ValueSense’s charting tools[2][6] helps identify optimal entry points. Dollar-cost averaging and staggered purchases may mitigate volatility, while regular portfolio reviews ensure alignment with evolving market conditions.
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 intrinsic value analysis, quality ratings, and fundamental metrics such as revenue growth, free cash flow, and ROIC, ensuring each pick is undervalued and financially robust[1][2].
Q2: What's the best stock from this list?
Each stock offers unique strengths; top performers by 1-year return include AngloGold Ashanti (AU), Gold Fields Limited (GFI), and Kinross Gold (KGC). The “best” depends on individual risk tolerance and sector preference.
Q3: Should I buy all these stocks or diversify?
Diversification is recommended to balance sector risks and capture upside across commodities, minerals, and industrials. The watchlist is designed for diversified exposure.
Q4: What are the biggest risks with these picks?
Key risks include commodity price volatility, regulatory and geopolitical challenges, and sector-specific operational risks. Debt levels and growth rates vary across stocks.
Q5: When is the best time to invest in these stocks?
Optimal timing often aligns with macroeconomic shifts, commodity cycles, and intrinsic value gaps. Using ValueSense’s charting and analysis tools can help identify favorable entry points[2][6].