10 Best Erp Software for February 2026
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Market Overview & Selection Criteria
The current market environment shows volatility in technology and fintech sectors, with many established players experiencing negative 1Y returns amid broader economic pressures, while select growth names like Nu Holdings demonstrate resilience. Value Sense selected these 10 best stock picks using its proprietary machine learning-driven analysis, focusing on intrinsic value comparisons, quality ratings, ROIC, FCF margins, and revenue growth to identify undervalued opportunities in ERP software and related fintech spaces. Stocks were curated from pre-built watchlists emphasizing high gross margins, positive FCF generation (where applicable), and potential for long-term value creation, aligning with value investing principles for retail investors seeking stock watchlist ideas.
Featured Stock Analysis
Stock #1: Oracle Corporation (ORCL)
| Metric | Value |
|---|---|
| Market Cap | $474.9B |
| Quality Rating | 6.1 |
| Intrinsic Value | $160.5 |
| 1Y Return | -3.4% |
| Revenue | $61.0B |
| Free Cash Flow | ($13.2B) |
| Revenue Growth | 11.1% |
| FCF margin | (21.6%) |
| Gross margin | 78.0% |
| ROIC | 13.1% |
| Total Debt to Equity | 408.4% |
Investment Thesis
Oracle Corporation (ORCL) stands out in the ERP software landscape with a massive market cap of $474.9B and strong gross margins at 78.0%, reflecting robust pricing power in cloud and database solutions. Despite a negative 1Y return of -3.4%, its revenue reached $61.0B with 11.1% growth, supported by ROIC of 13.1%. However, challenges include negative free cash flow of $13.2B and an FCF margin of 21.6%, alongside elevated total debt to equity at 408.4%. Value Sense's quality rating of 6.1 and intrinsic value of $160.5 suggest potential undervaluation for patient investors analyzing long-term enterprise software demand. This analysis highlights ORCL's scale as a foundation for recovery in a stabilizing tech sector.
Key Catalysts
- Solid revenue growth of 11.1% driven by cloud transitions.
- High gross margin of 78.0% indicating operational efficiency.
- Strong ROIC at 13.1% signaling effective capital allocation.
Risk Factors
- Negative FCF of $13.2B raising cash flow sustainability concerns.
- Extremely high total debt to equity of 408.4% increasing leverage risks.
- Modest quality rating of 6.1 amid competitive pressures.
Stock #2: SAP SE (SAP)
| Metric | Value |
|---|---|
| Market Cap | $236.7B |
| Quality Rating | 6.6 |
| Intrinsic Value | $269.6 |
| 1Y Return | -28.0% |
| Revenue | €35.3B |
| Free Cash Flow | €8,395.8M |
| Revenue Growth | 3.4% |
| FCF margin | 23.8% |
| Gross margin | 73.5% |
| ROIC | 17.2% |
| Total Debt to Equity | 17.8% |
Investment Thesis
SAP SE (SAP), a global ERP leader, boasts a market cap of $236.7B and impressive ROIC of 17.2%, underscoring efficient use of invested capital. With revenue of €35.3B, 3.4% growth, positive free cash flow of €8,395.8M, and FCF margin of 23.8%, SAP demonstrates financial stability despite a 1Y return dip of -28.0%. Its gross margin of 73.5% and low total debt to equity of 17.8% support a quality rating of 6.6, while the intrinsic value of $269.6 points to undervaluation. This educational analysis positions SAP as a steady pick for investors eyeing European tech resilience and cloud ERP adoption.
Key Catalysts
- High ROIC of 17.2% for superior returns on capital.
- Positive FCF of €8,395.8M with healthy 23.8% margin.
- Strong gross margin of 73.5% bolstering profitability.
Risk Factors
- Recent 1Y return decline of -28.0% reflecting market headwinds.
- Slower revenue growth at 3.4% versus high-growth peers.
- Currency risks from euro-denominated metrics.
Stock #3: Salesforce, Inc. (CRM)
| Metric | Value |
|---|---|
| Market Cap | $203.0B |
| Quality Rating | 6.9 |
| Intrinsic Value | $216.2 |
| 1Y Return | -38.2% |
| Revenue | $40.3B |
| Free Cash Flow | $12.9B |
| Revenue Growth | 8.4% |
| FCF margin | 32.0% |
| Gross margin | 77.7% |
| ROIC | 10.3% |
| Total Debt to Equity | 18.6% |
Investment Thesis
Salesforce, Inc. (CRM) commands a $203.0B market cap with standout FCF margin of 32.0% from $12.9B in free cash flow, fueled by $40.3B in revenue and 8.4% growth. High gross margin of 77.7% and quality rating of 6.9 highlight its CRM dominance, though 1Y return fell -38.2% and ROIC is 10.3%. Manageable total debt to equity at 18.6% pairs with an intrinsic value of $216.2, suggesting value for those analyzing SaaS expansion. This breakdown offers insights into CRM's role in enterprise software ecosystems.
Key Catalysts
- Exceptional FCF margin of 32.0% from strong cash generation.
- Robust gross margin of 77.7% supporting scalability.
- Steady revenue growth of 8.4% in CRM markets.
Risk Factors
- Sharp 1Y return drop of -38.2% amid valuation resets.
- Moderate ROIC of 10.3% compared to top peers.
- Competition in cloud CRM space.
Stock #4: 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 fintech disruptor, shines with $87.4B market cap, top-tier ROIC of 35.8%, and 28.5% revenue growth on $13.5B top line. Positive free cash flow of $3,665.8M yields 27.1% FCF margin, complemented by quality rating of 6.8 and intrinsic value of $80.4 versus a strong 32.1% 1Y return. Despite lower gross margin of 43.0% and 23.1% debt to equity, NU's metrics signal high-growth potential in digital banking, making it a standout in this stock picks analysis.
Key Catalysts
- Explosive revenue growth of 28.5% in emerging markets.
- Elite ROIC of 35.8% driving exceptional efficiency.
- Positive 1Y return of 32.1% amid fintech boom.
Risk Factors
- Lower gross margin of 43.0% versus software peers.
- Emerging market exposure heightening volatility.
- Elevated growth expectations pressuring valuations.
Stock #5: ONEOK, Inc. (OKE)
| Metric | Value |
|---|---|
| Market Cap | $49.3B |
| Quality Rating | 6.1 |
| Intrinsic Value | $185.1 |
| 1Y Return | -19.9% |
| Revenue | $31.6B |
| Free Cash Flow | $5,102.0M |
| Revenue Growth | 58.8% |
| FCF margin | 16.2% |
| Gross margin | 21.3% |
| ROIC | 7.6% |
| Total Debt to Equity | 2.6% |
Investment Thesis
ONEOK, Inc. (OKE) offers diversification with $49.3B market cap, explosive 58.8% revenue growth on $31.6B, and $5,102.0M FCF at 16.2% margin. Quality rating of 6.1 aligns with intrinsic value of $185.1, despite -19.9% 1Y return and modest ROIC of 7.6%. Low 2.6% debt to equity and 21.3% gross margin provide stability in commodities-linked energy midstream, positioning OKE as a value play in this watchlist.
Key Catalysts
- Massive revenue growth of 58.8% from energy demand.
- Healthy FCF of $5,102.0M supporting dividends.
- Minimal debt to equity at 2.6% for balance sheet strength.
Risk Factors
- Commodity price sensitivity impacting revenues.
- Lower ROIC of 7.6% limiting capital efficiency.
- Negative 1Y return of -19.9%.
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Stock #6: Workday, Inc. (WDAY)
| Metric | Value |
|---|---|
| Market Cap | $46.5B |
| Quality Rating | 10.0 |
| Intrinsic Value | $217.7 |
| 1Y Return | -32.5% |
| Revenue | $9,216.0M |
| Free Cash Flow | $2,585.0M |
| Revenue Growth | 0.3% |
| FCF margin | 28.0% |
| Gross margin | 77.5% |
| ROIC | 8.1% |
| Total Debt to Equity | 42.7% |
Investment Thesis
Workday, Inc. (WDAY) excels with perfect quality rating of 10.0, $46.5B market cap, and 28.0% FCF margin from $2,585.0M on $9,216.0M revenue. High 77.5% gross margin offsets flat 0.3% growth and -32.5% 1Y return, with intrinsic value at $217.7 and 8.1% ROIC. 42.7% debt to equity is manageable, framing WDAY as a premium HCM/ERP name for quality-focused analysis.
Key Catalysts
- Top quality rating of 10.0 indicating superior fundamentals.
- Strong FCF margin of 28.0% and gross margin 77.5%.
- Enterprise software stickiness driving retention.
Risk Factors
- Stagnant revenue growth at 0.3%.
- Significant 1Y return decline of -32.5%.
- Moderate debt to equity of 42.7%.
Stock #7: Roper Technologies, Inc. (ROP)
| Metric | Value |
|---|---|
| Market Cap | $38.9B |
| Quality Rating | 6.0 |
| Intrinsic Value | $515.6 |
| 1Y Return | -34.9% |
| Revenue | $7,902.5M |
| Free Cash Flow | $1,764.7M |
| Revenue Growth | 12.3% |
| FCF margin | 22.3% |
| Gross margin | 69.2% |
| ROIC | 5.7% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Roper Technologies, Inc. (ROP) features $38.9B market cap, zero debt to equity, and 12.3% revenue growth on $7,902.5M. Quality rating of 6.0, intrinsic value $515.6, 22.3% FCF margin, and 69.2% gross margin shine, despite -34.9% 1Y return and 5.7% ROIC. This serial acquirer's profile suits diversified investment opportunities in industrials/software.
Key Catalysts
- No debt to equity 0.0% for pristine balance sheet.
- Solid revenue growth of 12.3% via acquisitions.
- Attractive FCF margin of 22.3%.
Risk Factors
- Low ROIC of 5.7% questioning returns.
- Steep 1Y return drop of -34.9%.
- Acquisition dependency risks.
Stock #8: Tyler Technologies, Inc. (TYL)
| Metric | Value |
|---|---|
| Market Cap | $15.9B |
| Quality Rating | 6.2 |
| Intrinsic Value | $539.9 |
| 1Y Return | -38.3% |
| Revenue | $2,298.3M |
| Free Cash Flow | $618.9M |
| Revenue Growth | 10.6% |
| FCF margin | 26.9% |
| Gross margin | 44.8% |
| ROIC | 7.0% |
| Total Debt to Equity | 18.7% |
Investment Thesis
Tyler Technologies, Inc. (TYL) has $15.9B market cap, 6.2 quality rating, and $539.9 intrinsic value, with 10.6% revenue growth on $2,298.3M and 26.9% FCF margin. 44.8% gross margin, 7.0% ROIC, and 18.7% debt to equity support analysis despite -38.3% 1Y return, ideal for public sector software exposure.
Key Catalysts
- Strong FCF margin of 26.9% from $618.9M.
- Consistent revenue growth of 10.6%.
- Niche government software moat.
Risk Factors
- Poor 1Y return of -38.3%.
- Moderate ROIC at 7.0%.
- Sector-specific revenue concentration.
Stock #9: ServiceTitan, Inc. (TTAN)
| Metric | Value |
|---|---|
| Market Cap | $7,235.2M |
| Quality Rating | 5.2 |
| Intrinsic Value | $14.0K |
| 1Y Return | -21.9% |
| Revenue | $707.2B |
| Free Cash Flow | $90.2B |
| Revenue Growth | 96,025.2% |
| FCF margin | 12.8% |
| Gross margin | 70.2% |
| ROIC | (11.3%) |
| Total Debt to Equity | 3.6% |
Investment Thesis
ServiceTitan, Inc. (TTAN) shows hyper-growth with 96,025.2% revenue growth on $707.2B, $90.2B FCF at 12.8% margin, and 70.2% gross margin, despite 5.2 quality rating, $14.0K intrinsic value, -21.9% 1Y return, and negative -11.3% ROIC. $7,235.2M market cap and low 3.6% debt frame it as a high-risk, high-reward field service software play.
Key Catalysts
- Astonishing revenue growth of 96,025.2%.
- Massive scale in revenue and FCF.
- High gross margin of 70.2%.
Risk Factors
- Negative ROIC of 11.3%.
- Lower quality rating of 5.2.
- Extreme growth raising sustainability questions.
Stock #10: Upland Software, Inc. (UPLD)
| Metric | Value |
|---|---|
| Market Cap | $38.0M |
| Quality Rating | 4.4 |
| Intrinsic Value | $40.0 |
| 1Y Return | -69.0% |
| Revenue | $235.6M |
| Free Cash Flow | $26.2M |
| Revenue Growth | (15.0%) |
| FCF margin | 11.1% |
| Gross margin | 73.2% |
| ROIC | (1.4%) |
| Total Debt to Equity | 294.7% |
Investment Thesis
Upland Software, Inc. (UPLD), a micro-cap at $38.0M market cap, has 4.4 quality rating and $40.0 intrinsic value, with $235.6M revenue, 11.1% FCF margin, and 73.2% gross margin. Declines in -69.0% 1Y return, -15.0% revenue growth, and -1.4% ROIC contrast high 294.7% debt to equity, offering speculative value in cloud software.
Key Catalysts
- Solid gross margin of 73.2%.
- Positive FCF of $26.2M.
- Potential turnaround from intrinsic value upside.
Risk Factors
- Severe 1Y return loss of -69.0%.
- Negative revenue growth and ROIC.
- High debt to equity of 294.7%.
Portfolio Diversification Insights
These 10 top stocks to buy now cluster heavily in technology (ORCL, SAP, CRM, WDAY, ROP, TYL, TTAN, UPLD) for ERP/software exposure, fintech (NU), and commodities/energy (OKE), creating balanced sector allocation with ~80% tech, 10% fintech, 10% energy. High-quality names like WDAY (10.0 rating) complement growth outliers like TTAN, while low-debt picks (ROP, OKE) offset leveraged ones (ORCL, UPLD). Together, they reduce single-stock risk through thematic synergy in enterprise tech, with average ROIC ~10% and varied intrinsic value discounts enhancing portfolio diversification for value strategies.
Market Timing & Entry Strategies
Consider positions during tech sector dips, targeting entries when prices approach intrinsic values (e.g., ORCL near $160.5, SAP at $269.6). Monitor revenue growth accelerators like NU's 28.5% or OKE's 58.8% for momentum, using dollar-cost averaging for volatile names like UPLD. Pair with Value Sense screeners for ROIC >10% and FCF positivity, entering on macroeconomic stabilization signals.
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FAQ Section
How were these stocks selected?
These stock picks were chosen via Value Sense's automated fundamental analysis, prioritizing intrinsic value, quality ratings, ROIC, FCF margins, and growth in ERP/fintech themes from curated watchlists.
What's the best stock from this list?
Workday (WDAY) leads with a perfect 10.0 quality rating and strong margins, though NU excels in growth (32.1% 1Y return); selection depends on risk tolerance in this educational overview.
Should I buy all these stocks or diversify?
Diversification across tech, fintech, and energy (as shown in portfolio insights) mitigates risks; analyze individual metrics like debt levels before position sizing.
What are the biggest risks with these picks?
Key concerns include high debt (ORCL 408.4%, UPLD 294.7%), negative returns (e.g., UPLD -69.0%), and growth inconsistencies (WDAY 0.3%), plus sector volatility.
When is the best time to invest in these stocks?
Optimal timing aligns with price proximity to intrinsic values and positive macro signals, using backtested screeners for entries during market corrections.