10 Best Bi Analytics Software for February 2026
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Market Overview & Selection Criteria
The BI analytics software sector continues to drive innovation in data-driven decision-making, with companies leveraging AI, cloud infrastructure, and enterprise software to capitalize on growing demand for analytics tools. Value Sense selected these 10 top stock picks based on proprietary intrinsic value calculations, quality ratings, high ROIC, strong revenue growth, and robust free cash flow margins. Stocks were curated from the BI analytics software watchlist, prioritizing those with favorable metrics relative to their estimated intrinsic values, even amid varied 1Y returns. This methodology highlights potential undervalued stocks in a market favoring scalable software businesses with high gross margins and low debt burdens.
Featured Stock Analysis
Stock #1: Palantir Technologies Inc. (PLTR)
| Metric | Value |
|---|---|
| Market Cap | $349.5B |
| Quality Rating | 8.1 |
| Intrinsic Value | $20.3 |
| 1Y Return | 80.5% |
| Revenue | $3,896.2M |
| Free Cash Flow | $1,794.8M |
| Revenue Growth | 47.2% |
| FCF margin | 46.1% |
| Gross margin | 80.8% |
| ROIC | 76.6% |
| Total Debt to Equity | 3.5% |
Investment Thesis
Palantir Technologies Inc. (PLTR) stands out with a Quality rating of 8.1, the highest in this collection, driven by exceptional ROIC of 76.6% and revenue growth of 47.2%. Despite a massive market cap of $349.5B, its intrinsic value of $20.3 suggests room for analysis in value-oriented strategies, supported by revenue of $3,896.2M and free cash flow of $1,794.8M. The FCF margin of 46.1% and gross margin of 80.8% underscore operational efficiency in AI-driven analytics platforms, making PLTR a leader in big data solutions for enterprises. This positions it as a high-growth pick for investors examining software scalability.
Key Catalysts
- Explosive 47.2% revenue growth fueling expansion in government and commercial contracts.
- Industry-leading 76.6% ROIC indicating superior capital allocation.
- Strong 46.1% FCF margin supporting reinvestment and shareholder returns.
- Minimal 3.5% total debt to equity for financial stability.
Risk Factors
- Elevated market cap at $349.5B may signal overvaluation risks if growth slows.
- High expectations from 80.5% 1Y return could lead to volatility.
Stock #2: ServiceNow, Inc. (NOW)
| Metric | Value |
|---|---|
| Market Cap | $121.4B |
| Quality Rating | 7.2 |
| Intrinsic Value | $63.0 |
| 1Y Return | -42.2% |
| Revenue | $13.3B |
| Free Cash Flow | $4,576.0M |
| Revenue Growth | 20.9% |
| FCF margin | 34.5% |
| Gross margin | 77.5% |
| ROIC | 15.6% |
| Total Debt to Equity | 24.7% |
Investment Thesis
ServiceNow, Inc. (NOW) earns a solid Quality rating of 7.2, with revenue reaching $13.3B and free cash flow of $4,576.0M highlighting its dominance in workflow automation and IT service management. Revenue growth of 20.9% pairs with a 34.5% FCF margin and 77.5% gross margin, while ROIC at 15.6% reflects efficient scaling in enterprise software. At a market cap of $121.4B and intrinsic value of $63.0, this analysis reveals potential for investors tracking cloud-based analytics integrations, despite a -42.2% 1Y return amid market rotations.
Key Catalysts
- Steady 20.9% revenue growth from expanding SaaS subscriptions.
- High 77.5% gross margin enabling R&D in AI enhancements.
- Robust $4,576.0M free cash flow for acquisitions and buybacks.
- 24.7% total debt to equity maintaining manageable leverage.
Risk Factors
- Recent -42.2% 1Y return indicating short-term price pressure.
- Competitive SaaS landscape could erode margins over time.
Stock #3: Nu Holdings Ltd. (NU)
| Metric | Value |
|---|---|
| Market Cap | $87.4B |
| Quality Rating | 6.8 |
| Intrinsic Value | $80.4 |
| 1Y Return | 32.1% |
| 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 with BI analytics elements, boasts a Quality rating of 6.8 and impressive revenue of $13.5B alongside free cash flow of $3,665.8M. Revenue growth of 28.5% and ROIC of 35.8% highlight its fintech scalability, with a 27.1% FCF margin and 43.0% gross margin. Trading at a market cap of $87.4B against an intrinsic value of $80.4, NU offers educational insights into emerging market growth, buoyed by a positive 32.1% 1Y return.
Key Catalysts
- Rapid 28.5% revenue growth from Latin American user expansion.
- Strong 35.8% ROIC demonstrating profitable scaling.
- Solid $3,665.8M free cash flow for tech infrastructure.
- Low 23.1% total debt to equity supporting agility.
Risk Factors
- Emerging market exposure heightens currency and regulatory risks.
- 43.0% gross margin lags pure software peers.
Stock #4: Cintas Corporation (CTAS)
| Metric | Value |
|---|---|
| Market Cap | $76.2B |
| Quality Rating | 6.6 |
| Intrinsic Value | $74.0 |
| 1Y Return | -5.2% |
| Revenue | $10.8B |
| Free Cash Flow | $1,780.7M |
| Revenue Growth | 8.6% |
| FCF margin | 16.5% |
| Gross margin | 37.6% |
| ROIC | 28.7% |
| Total Debt to Equity | 72.7% |
Investment Thesis
Cintas Corporation (CTAS) delivers a Quality rating of 6.6, with revenue of $10.8B and free cash flow of $1,780.7M underscoring its uniform and facility services model enhanced by analytics. ROIC of 28.7% and revenue growth of 8.6% provide stability, complemented by a 16.5% FCF margin and 37.6% gross margin. At $76.2B market cap and intrinsic value of $74.0, this pick analyzes defensive qualities amid a -5.2% 1Y return.
Key Catalysts
- Consistent 28.7% ROIC from operational efficiencies.
- Reliable 8.6% revenue growth in essential services.
- $1,780.7M free cash flow for dividends and expansion.
Risk Factors
- Higher 72.7% total debt to equity increases sensitivity to rates.
- Slower growth profile versus high-tech peers.
Stock #5: RELX Plc (RELX)
| Metric | Value |
|---|---|
| Market Cap | $66.6B |
| Quality Rating | 7.9 |
| Intrinsic Value | $25.4 |
| 1Y Return | -28.9% |
| Revenue | £18.8B |
| Free Cash Flow | £5,027.0M |
| Revenue Growth | 11.4% |
| FCF margin | 26.7% |
| Gross margin | 64.7% |
| ROIC | 38.4% |
| Total Debt to Equity | 343.4% |
Investment Thesis
RELX Plc (RELX) achieves a strong Quality rating of 7.9, featuring revenue of £18.8B and free cash flow of £5,027.0M in analytics and information services. Revenue growth of 11.4%, 26.7% FCF margin, 64.7% gross margin, and 38.4% ROIC signal resilience at a $66.6B market cap with intrinsic value of $25.4, despite -28.9% 1Y return.
Key Catalysts
- High 38.4% ROIC from data analytics dominance.
- Steady 11.4% revenue growth in scientific and legal sectors.
- Excellent £5,027.0M free cash flow for global reach.
Risk Factors
- Elevated 343.4% total debt to equity poses leverage concerns.
- Currency fluctuations from GBP reporting.
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Stock #6: Thomson Reuters Corporation (TRI)
| Metric | Value |
|---|---|
| Market Cap | $49.7B |
| Quality Rating | 6.2 |
| Intrinsic Value | $116.8 |
| 1Y Return | -34.3% |
| Revenue | $7,379.9M |
| Free Cash Flow | $1,831.3M |
| Revenue Growth | 2.4% |
| FCF margin | 24.8% |
| Gross margin | 39.7% |
| ROIC | 13.4% |
| Total Debt to Equity | 18.5% |
Investment Thesis
Thomson Reuters Corporation (TRI) holds a Quality rating of 6.2, with revenue of $7,379.9M and free cash flow of $1,831.3M in professional information services. 24.8% FCF margin, 39.7% gross margin, and 13.4% ROIC support analysis at $49.7B market cap versus intrinsic value of $116.8, following -34.3% 1Y return and modest 2.4% growth.
Key Catalysts
- Attractive intrinsic value of $116.8 indicating upside potential.
- Stable $1,831.3M free cash flow from recurring revenue.
- Low 18.5% total debt to equity.
Risk Factors
- Low 2.4% revenue growth limits momentum.
- Market share pressures in content analytics.
Stock #7: Datadog, Inc. (DDOG)
| Metric | Value |
|---|---|
| Market Cap | $44.6B |
| Quality Rating | 7.0 |
| Intrinsic Value | $43.4 |
| 1Y Return | -9.3% |
| Revenue | $3,211.7M |
| Free Cash Flow | $939.8M |
| Revenue Growth | 26.6% |
| FCF margin | 29.3% |
| Gross margin | 79.9% |
| ROIC | (4.4%) |
| Total Debt to Equity | 37.2% |
Investment Thesis
Datadog, Inc. (DDOG) scores a Quality rating of 7.0, boasting revenue of $3,211.7M, free cash flow of $939.8M, 26.6% revenue growth, and 79.9% gross margin. Despite negative ROIC of 4.4%, 29.3% FCF margin aids growth at $44.6B market cap and intrinsic value of $43.4, post -9.3% 1Y return.
Key Catalysts
- Accelerating 26.6% revenue growth in observability tools.
- Elite 79.9% gross margin for cloud monitoring.
- Improving 29.3% FCF margin.
Risk Factors
- Negative 4.4% ROIC signals investment phase risks.
- 37.2% total debt to equity amid expansion.
Stock #8: Fair Isaac Corporation (FICO)
| Metric | Value |
|---|---|
| Market Cap | $35.3B |
| Quality Rating | 7.2 |
| Intrinsic Value | $691.0 |
| 1Y Return | -21.6% |
| Revenue | $2,062.9M |
| Free Cash Flow | $735.1M |
| Revenue Growth | 16.2% |
| FCF margin | 35.6% |
| Gross margin | 82.9% |
| ROIC | 60.7% |
| Total Debt to Equity | (178.8%) |
Investment Thesis
Fair Isaac Corporation (FICO) features a Quality rating of 7.2, with revenue of $2,062.9M, free cash flow of $735.1M, 16.2% revenue growth, and standout 82.9% gross margin. Exceptional 60.7% ROIC shines at $35.3B market cap against high intrinsic value of $691.0, despite -21.6% 1Y return and negative total debt to equity of 178.8%.
Key Catalysts
- Superior 60.7% ROIC from FICO scores analytics.
- Strong 35.6% FCF margin and 82.9% gross margin.
- 16.2% revenue growth in decision management.
Risk Factors
- Negative 178.8% total debt to equity requires monitoring.
- High valuation expectations.
Stock #9: Verisk Analytics, Inc. (VRSK)
| Metric | Value |
|---|---|
| Market Cap | $29.9B |
| Quality Rating | 7.4 |
| Intrinsic Value | $216.9 |
| 1Y Return | -24.5% |
| Revenue | $3,029.5M |
| Free Cash Flow | $1,115.8M |
| Revenue Growth | 7.3% |
| FCF margin | 36.8% |
| Gross margin | 69.6% |
| ROIC | 30.7% |
| Total Debt to Equity | 1,295.0% |
Investment Thesis
Verisk Analytics, Inc. (VRSK) rates 7.4 in Quality, with revenue of $3,029.5M, free cash flow of $1,115.8M, 36.8% FCF margin, and 69.6% gross margin. ROIC of 30.7% supports insurance analytics focus at $29.9B market cap and intrinsic value of $216.9, after -24.5% 1Y return.
Key Catalysts
- Impressive 36.8% FCF margin for data solutions.
- Solid 30.7% ROIC in niche markets.
- 7.3% revenue growth stability.
Risk Factors
- Very high 1,295.0% total debt to equity.
- Sector-specific demand fluctuations.
Stock #10: Dynatrace, Inc. (DT)
| Metric | Value |
|---|---|
| Market Cap | $11.6B |
| Quality Rating | 6.9 |
| Intrinsic Value | $31.8 |
| 1Y Return | -34.1% |
| Revenue | $1,852.5M |
| Free Cash Flow | $476.1M |
| Revenue Growth | 18.5% |
| FCF margin | 25.7% |
| Gross margin | 81.5% |
| ROIC | 25.0% |
| Total Debt to Equity | 3.1% |
Investment Thesis
Dynatrace, Inc. (DT) has a Quality rating of 6.9, generating revenue of $1,852.5M and free cash flow of $476.1M with 18.5% revenue growth and 81.5% gross margin. 25.0% ROIC and low 3.1% total debt to equity bolster its observability platform at $11.6B market cap versus intrinsic value of $31.8, post -34.1% 1Y return.
Key Catalysts
- High 81.5% gross margin in AI observability.
- Healthy 25.0% ROIC and 25.7% FCF margin.
- 18.5% revenue growth trajectory.
Risk Factors
- Sharp -34.1% 1Y return reflects competition.
- Smaller market cap increases volatility.
Portfolio Diversification Insights
These 10 BI analytics software stock picks offer strong diversification across sub-sectors like AI platforms (PLTR, DDOG, DT), enterprise workflow (NOW), fintech analytics (NU), services (CTAS), information services (RELX, TRI), scoring (FICO), and insurance data (VRSK). Technology-heavy allocation 90% emphasizes high-margin software, balanced by PLTR's top quality rating 8.1 and FICO's standout ROIC 60.7%. Pair high-growth like NU (28.5% revenue growth) with stables like RELX (38.4% ROIC) to mitigate volatility from negative 1Y returns in most picks. Low average debt (except RELX, VRSK) enhances resilience.
Market Timing & Entry Strategies
Consider positions during sector dips, such as post-earnings volatility or when intrinsic value gaps widen (e.g., FICO at $691.0, VRSK at $216.9). Monitor revenue growth leaders like PLTR 47.2% for momentum entries, using dollar-cost averaging for laggards like DT (-34.1% 1Y return). Track macroeconomic shifts favoring AI analytics, entering on pullbacks to FCF margin support levels.
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FAQ Section
How were these stocks selected?
These top 10 BI analytics software stock picks were chosen using Value Sense's methodology, focusing on quality ratings, intrinsic value estimates, ROIC, revenue growth, and FCF margins from curated watchlists.
What's the best stock from this list?
PLTR leads with the highest Quality rating 8.1, 47.2% revenue growth, and 76.6% ROIC, though FICO's $691.0 intrinsic value and 60.7% ROIC offer compelling analysis for value seekers.
Should I buy all these stocks or diversify?
Diversification across these picks balances high-growth (PLTR, NU) with stables (RELX, CTAS), reducing sector-specific risks while leveraging shared high gross margins (average ~70%).
What are the biggest risks with these picks?
Key concerns include high debt in RELX 343.4% and VRSK 1,295.0%, negative 1Y returns in most (e.g., NOW -42.2%), and growth slowdowns impacting ROIC.
When is the best time to invest in these stocks?
Optimal timing aligns with dips widening intrinsic value discounts, strong earnings sentiment, or AI sector catalysts, using Value Sense tools for backtested entry signals.