8 Best Regtech for November 2025
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Market Overview & Selection Criteria
The current market landscape is defined by heightened volatility, sector rotation, and a renewed focus on fundamentals. ValueSense’s methodology prioritizes stocks with strong intrinsic value, robust free cash flow, and sectoral diversification. Each stock featured here was selected using ValueSense’s proprietary screener, which filters for quality ratings, undervaluation relative to intrinsic value, and key financial health metrics. This approach ensures a balanced watchlist spanning technology, fintech, legal services, and data analytics, targeting both growth and value opportunities[1][2].
Featured Stock Analysis
Stock #1: Nu Holdings Ltd. (NU)
| Metric | Value |
|---|---|
| Market Cap | $77.7B |
| Quality Rating | 7.1 |
| Intrinsic Value | $82.8 |
| 1Y Return | 6.8% |
| Revenue | $12.4B |
| Free Cash Flow | $3,657.0M |
| Revenue Growth | 27.6% |
| FCF margin | 29.5% |
| Gross margin | 43.6% |
| ROIC | 37.0% |
| Total Debt to Equity | 312.7% |
Investment Thesis
Nu Holdings Ltd. is a leading digital banking platform in Latin America, recognized for its disruptive approach to financial services. With a market cap of $77.7B and a ValueSense quality rating of 7.1, NU stands out for its rapid revenue growth 27.6% and impressive free cash flow margin 29.5%. The company’s intrinsic value is estimated at $82.8, suggesting significant upside potential relative to its current market price. Nu’s robust ROIC of 37.0% highlights efficient capital allocation, while its gross margin of 43.6% underscores operational strength.
Key Catalysts
- Expansion of digital banking services across Latin America
- Strong user growth and increasing product adoption
- High free cash flow generation supports reinvestment
- Continued innovation in fintech offerings
Risk Factors
- Elevated total debt to equity 312.7% may increase financial risk
- Competitive pressures from both traditional banks and fintech startups
- Macroeconomic volatility in key operating regions
Stock #2: DocuSign, Inc. (DOCU)
| Metric | Value |
|---|---|
| Market Cap | $14.8B |
| Quality Rating | 6.8 |
| Intrinsic Value | $155.1 |
| 1Y Return | 5.4% |
| Revenue | $3,095.4M |
| Free Cash Flow | $935.7M |
| Revenue Growth | 8.3% |
| FCF margin | 30.2% |
| Gross margin | 79.3% |
| ROIC | 18.5% |
| Total Debt to Equity | 6.4% |
Investment Thesis
DocuSign, Inc. is a global leader in e-signature and digital agreement technologies. With a $14.8B market cap and a ValueSense quality rating of 6.8, DOCU continues to benefit from the digital transformation of business processes. The company’s intrinsic value is calculated at $155.1, well above its current price, indicating potential undervaluation. DocuSign’s gross margin of 79.3% and free cash flow margin of 30.2% reflect a scalable SaaS business model, while revenue growth of 8.3% demonstrates resilience in a maturing market.
Key Catalysts
- Ongoing shift to remote and hybrid work environments
- Expansion into broader contract lifecycle management solutions
- High customer retention and upsell opportunities
Risk Factors
- Slowing revenue growth as market matures
- Competitive threats from new and established SaaS providers
- Modest total debt to equity 6.4% but requires monitoring
Stock #3: Workiva Inc. (WK)
| Metric | Value |
|---|---|
| Market Cap | $4,774.0M |
| Quality Rating | 5.9 |
| Intrinsic Value | $117.0 |
| 1Y Return | 6.6% |
| Revenue | $807.0M |
| Free Cash Flow | $102.9M |
| Revenue Growth | 19.0% |
| FCF margin | 12.8% |
| Gross margin | 76.8% |
| ROIC | (23.5%) |
| Total Debt to Equity | (1,193.0%) |
Investment Thesis
Workiva Inc. provides cloud-based solutions for enterprise reporting, compliance, and data management. With a $4.77B market cap and a ValueSense quality rating of 5.9, WK is positioned to capitalize on increasing regulatory complexity and demand for integrated reporting tools. The company’s intrinsic value is $117.0, suggesting room for appreciation. Workiva’s revenue growth of 19.0% and gross margin of 76.8% highlight strong business momentum, though its negative ROIC -23.5% and high negative debt to equity -1,193.0% warrant close scrutiny.
Key Catalysts
- Regulatory tailwinds driving demand for compliance solutions
- Expansion of platform capabilities and integrations
- Growing enterprise customer base
Risk Factors
- Negative ROIC and high leverage signal operational challenges
- Competitive landscape in enterprise SaaS
- Need for sustained innovation to maintain growth
Stock #4: LegalZoom.com, Inc. (LZ)
| Metric | Value |
|---|---|
| Market Cap | $1,803.4M |
| Quality Rating | 7.2 |
| Intrinsic Value | $6.9 |
| 1Y Return | 38.9% |
| Revenue | $705.9M |
| Free Cash Flow | $130.8M |
| Revenue Growth | 4.2% |
| FCF margin | 18.5% |
| Gross margin | 65.7% |
| ROIC | 9.9% |
| Total Debt to Equity | 12.8% |
Investment Thesis
LegalZoom.com, Inc. is a leading provider of online legal solutions for individuals and small businesses. With a $1.8B market cap and a ValueSense quality rating of 7.2, LZ has demonstrated strong performance, posting a 1-year return of 38.9%. The company’s intrinsic value is $6.9, and its gross margin of 65.7% supports a scalable business model. LegalZoom’s free cash flow margin of 18.5% and ROIC of 9.9% indicate efficient operations, while modest revenue growth of 4.2% reflects a mature market position.
Key Catalysts
- Expansion of digital legal services and product offerings
- Increasing adoption among small businesses
- Strong brand recognition in the online legal space
Risk Factors
- Slower revenue growth in a competitive market
- Regulatory changes affecting legal services
- Moderate total debt to equity 12.8%
Stock #5: ICF International, Inc. (ICFI)
| Metric | Value |
|---|---|
| Market Cap | $1,479.7M |
| Quality Rating | 4.9 |
| Intrinsic Value | $159.8 |
| 1Y Return | -52.3% |
| Revenue | $1,925.5M |
| Free Cash Flow | $141.0M |
| Revenue Growth | (3.8%) |
| FCF margin | 7.3% |
| Gross margin | 28.1% |
| ROIC | 7.5% |
| Total Debt to Equity | 60.9% |
Investment Thesis
ICF International, Inc. delivers consulting and technology services to government and commercial clients. With a $1.48B market cap and a ValueSense quality rating of 4.9, ICFI’s intrinsic value is $159.8. Despite a negative 1-year return -52.3% and revenue contraction -3.8%, the company maintains a positive free cash flow margin 7.3% and a reasonable gross margin 28.1%. ICFI’s ROIC of 7.5% and total debt to equity of 60.9% reflect moderate financial health.
Key Catalysts
- Government digital transformation initiatives
- Diversification into higher-margin consulting segments
- Potential for margin recovery as market stabilizes
Risk Factors
- Recent revenue decline and negative stock performance
- Exposure to government budget cycles
- Moderate leverage
Stock #6: Mitek Systems, Inc. (MITK)
| Metric | Value |
|---|---|
| Market Cap | $422.7M |
| Quality Rating | 7.2 |
| Intrinsic Value | $41.7 |
| 1Y Return | 7.2% |
| Revenue | $178.1M |
| Free Cash Flow | $55.8M |
| Revenue Growth | 7.0% |
| FCF margin | 31.3% |
| Gross margin | 99.8% |
| ROIC | 9.2% |
| Total Debt to Equity | 65.4% |
Investment Thesis
Mitek Systems, Inc. specializes in digital identity verification and mobile capture solutions. With a $422.7M market cap and a ValueSense quality rating of 7.2, MITK’s intrinsic value is $41.7. The company boasts a gross margin of 99.8% and a free cash flow margin of 31.3%, reflecting a highly profitable business model. Revenue growth stands at 7.0%, and ROIC is 9.2%, indicating solid operational efficiency.
Key Catalysts
- Rising demand for digital identity verification
- Expansion into new verticals and geographies
- High-margin SaaS business model
Risk Factors
- Moderate total debt to equity 65.4%
- Competitive pressures in the identity verification space
- Reliance on technology innovation
Stock #7: CS Disco, Inc. (LAW)
| Metric | Value |
|---|---|
| Market Cap | $387.1M |
| Quality Rating | 5.8 |
| Intrinsic Value | $30.0 |
| 1Y Return | 7.5% |
| Revenue | $148.0M |
| Free Cash Flow | ($18.4M) |
| Revenue Growth | 4.1% |
| FCF margin | (12.4%) |
| Gross margin | 74.0% |
| ROIC | (154.0%) |
| Total Debt to Equity | 6.0% |
Investment Thesis
CS Disco, Inc. offers AI-powered legal technology solutions for law firms and corporate legal departments. With a $387.1M market cap and a ValueSense quality rating of 5.8, LAW’s intrinsic value is $30.0. The company’s gross margin of 74.0% and revenue growth of 4.1% highlight a stable, if modest, growth trajectory. However, negative free cash flow -$18.4M and a deeply negative ROIC -154.0% indicate ongoing operational challenges.
Key Catalysts
- Adoption of AI-driven legal technology
- Expansion of product suite and customer base
- Increasing demand for legal process automation
Risk Factors
- Persistent negative free cash flow and ROIC
- Intense competition in legal tech
- Need for significant operational improvements
Stock #8: FiscalNote Holdings, Inc. (NOTE)
| Metric | Value |
|---|---|
| Market Cap | $45.7M |
| Quality Rating | 5.0 |
| Intrinsic Value | $4,392.4 |
| 1Y Return | 350.5% |
| Revenue | $29.5B |
| Free Cash Flow | ($13.4M) |
| Revenue Growth | 22,694.7% |
| FCF margin | (0.0%) |
| Gross margin | 82.0% |
| ROIC | (2,547.3%) |
| Total Debt to Equity | 147.5% |
Investment Thesis
FiscalNote Holdings, Inc. provides data and analytics solutions for policy and regulatory intelligence. With a $45.7M market cap and a ValueSense quality rating of 5.0, NOTE’s intrinsic value is a striking $4,392.4. The company posted a remarkable 1-year return of 350.5% and revenue growth of 22,694.7%, though these figures may reflect one-time events or extraordinary items. FiscalNote’s gross margin of 82.0% is strong, but negative free cash flow -$13.4M and ROIC -2,547.3% highlight significant financial risk.
Key Catalysts
- Growing demand for regulatory intelligence and compliance tools
- Expansion into new markets and data services
- Potential for strategic partnerships or acquisitions
Risk Factors
- Extremely high negative ROIC and ongoing cash burn
- Small market cap increases volatility
- Sustainability of recent growth rates is uncertain
Portfolio Diversification Insights
This watchlist spans a diverse set of sectors, including fintech (NU), SaaS and digital agreements (DOCU, WK), legal services (LZ, LAW), consulting (ICFI), digital identity (MITK), and regulatory data analytics (NOTE). Such diversification helps mitigate sector-specific risks and balances growth with value characteristics. The inclusion of both large-cap (NU, DOCU) and small-cap (NOTE, LAW) stocks further enhances risk-adjusted return potential, while the mix of positive and negative recent returns provides exposure to both momentum and turnaround opportunities.
Market Timing & Entry Strategies
Given the current market volatility, a phased entry approach—such as dollar-cost averaging—can help manage risk when building positions in these stocks. Monitoring key earnings dates, sector news, and macroeconomic developments is essential for optimal timing. Investors may consider prioritizing stocks with strong free cash flow and positive ROIC for earlier entry, while keeping higher-risk, turnaround candidates on a watchlist for technical or fundamental confirmation.
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?
These stocks were chosen using ValueSense’s proprietary screener, which filters for intrinsic value, quality ratings, financial health, and sector diversification. The process emphasizes both quantitative and qualitative analysis, leveraging AI-driven insights and fundamental metrics[1][2].
Q2: What's the best stock from this list?
No single stock is universally “best,” as suitability depends on individual investment goals and risk tolerance. However, stocks with high quality ratings, strong free cash flow, and significant undervaluation relative to intrinsic value—such as Nu Holdings (NU) and DocuSign (DOCU)—stand out for further analysis.
Q3: Should I buy all these stocks or diversify?
Diversification is a key principle in portfolio construction. This watchlist is designed to provide exposure across sectors and market caps, helping to balance risk and return. Investors can use this list as a starting point to build a diversified portfolio tailored to their objectives.
Q4: What are the biggest risks with these picks?
Risks include sector-specific headwinds, high leverage (as seen in NU), negative free cash flow (LAW, NOTE), and competitive pressures. It’s important to review each company’s financial health, business model sustainability, and market environment before making investment decisions.
Q5: When is the best time to invest in these stocks?
Optimal timing depends on market conditions, company-specific catalysts, and individual risk tolerance. Phased entry strategies and monitoring of earnings releases, macroeconomic trends, and technical indicators can help identify favorable entry points.
This article is for educational purposes only and is based exclusively on ValueSense platform data as of November 2025. For more in-depth analysis, visit ValueSense.io.