10 Best Fintech Infrastructure for February 2026
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Market Overview & Selection Criteria
The fintech sector continues to show resilience amid broader market volatility, driven by digital payment adoption and infrastructure expansion. ValueSense analysis highlights 10 undervalued fintech stocks selected based on intrinsic value metrics, quality ratings, revenue growth, and free cash flow generation. These picks emphasize companies trading below their calculated intrinsic values, with strong ROIC and manageable debt levels. Selection prioritizes diversified exposure across e-commerce platforms, digital banking, payment processors, and emerging market players, using ValueSense's proprietary ratings (scale 1-10) and key financials like FCF margins above 10% where possible. This watchlist targets best value stocks in fintech infrastructure for long-term analysis.
Featured Stock Analysis
Stock #1: Shopify Inc. (SHOP)
| Metric | Value |
|---|---|
| Market Cap | $175.4B |
| Quality Rating | 7.3 |
| Intrinsic Value | $26.9 |
| 1Y Return | 10.1% |
| Revenue | $10.7B |
| Free Cash Flow | $1,910.9M |
| Revenue Growth | 30.3% |
| FCF margin | 17.9% |
| Gross margin | 48.7% |
| ROIC | 57.9% |
| Total Debt to Equity | 8.9% |
Investment Thesis
Shopify Inc. (SHOP) stands out with a Quality rating of 7.3 and robust fundamentals in the e-commerce space. Despite a market cap of $175.4B, its intrinsic value is estimated at $26.9, suggesting potential undervaluation. The company reports $10.7B in revenue with 30.3% growth, $1,910.9M free cash flow (17.9% FCF margin), 48.7% gross margin, and exceptional 57.9% ROIC. Low total debt to equity of 8.9% underscores financial strength, even with a modest 10.1% 1Y return. This positions SHOP as a high-quality growth play for investors analyzing e-commerce infrastructure.
Key financials reveal efficient capital use, making it a compelling part of any fintech stock watchlist.
Key Catalysts
- 30.3% revenue growth fueling e-commerce expansion
- 57.9% ROIC indicating superior capital efficiency
- 17.9% FCF margin supporting reinvestment and shareholder returns
- Low 8.9% debt-to-equity for balance sheet stability
Risk Factors
- Modest 10.1% 1Y return amid market competition
- High market cap may limit short-term upside volatility
- Dependence on merchant adoption in saturated markets
Stock #2: 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 leader, features a Quality rating of 6.8 and $87.4B market cap. Its intrinsic value of $80.4 highlights undervaluation potential, backed by $13.5B revenue, 28.5% growth, $3,665.8M FCF (27.1% margin), 43.0% gross margin, and 35.8% ROIC. Total debt to equity at 23.1% remains prudent, with a strong 32.1% 1Y return signaling momentum. NU's scalable model in emerging markets makes it a key undervalued stock for fintech exposure.
Key Catalysts
- 28.5% revenue growth from user expansion
- 27.1% FCF margin demonstrating profitability
- 35.8% ROIC for efficient operations
- 32.1% 1Y return reflecting positive traction
Risk Factors
- Emerging market exposure to currency fluctuations
- 23.1% debt-to-equity requiring monitoring
- Competition in digital banking saturation
Stock #3: PayPal Holdings, Inc. (PYPL)
| Metric | Value |
|---|---|
| Market Cap | $50.7B |
| Quality Rating | 6.0 |
| Intrinsic Value | $101.9 |
| 1Y Return | -41.2% |
| Revenue | $32.9B |
| Free Cash Flow | $5,565.0M |
| Revenue Growth | 4.5% |
| FCF margin | 16.9% |
| Gross margin | 46.8% |
| ROIC | 24.9% |
| Total Debt to Equity | 55.8% |
Investment Thesis
PayPal Holdings, Inc. (PYPL) offers a Quality rating of 6.0 with $50.7B market cap and intrinsic value of $101.9, indicating significant upside. Revenue stands at $32.9B with 4.5% growth, $5,565.0M FCF (16.9% margin), 46.8% gross margin, and 24.9% ROIC, though 1Y return is -41.2%. Higher debt-to-equity at 55.8% is offset by strong cash flows, positioning PYPL as a mature payment processor in stock picks analysis.
Key Catalysts
- $5,565.0M FCF for resilience
- 16.9% FCF margin and 46.8% gross margin
- 24.9% ROIC in established networks
- Scale from $32.9B revenue base
Risk Factors
- -41.2% 1Y return from growth slowdown
- 55.8% debt-to-equity elevating leverage
- Slow 4.5% revenue growth in competitive space
Stock #4: Block, Inc. (XYZ)
| Metric | Value |
|---|---|
| Market Cap | $37.0B |
| Quality Rating | 6.8 |
| Intrinsic Value | $113.0 |
| 1Y Return | -35.0% |
| Revenue | $24.0B |
| Free Cash Flow | $1,831.7M |
| Revenue Growth | 0.5% |
| FCF margin | 7.6% |
| Gross margin | 40.7% |
| ROIC | 17.2% |
| Total Debt to Equity | 7.0% |
Investment Thesis
Block, Inc. (XYZ) has a Quality rating of 6.8, $37.0B market cap, and intrinsic value of $113.0. Key metrics include $24.0B revenue, 0.5% growth, $1,831.7M FCF (7.6% margin), 40.7% gross margin, 17.2% ROIC, and low 7.0% debt-to-equity. Despite -35.0% 1Y return, its ecosystem in payments merits investment opportunities review.
Key Catalysts
- Low 7.0% debt-to-equity for flexibility
- $1,831.7M FCF supporting innovation
- 17.2% ROIC in core operations
- Diversified revenue streams
Risk Factors
- -35.0% 1Y return signaling underperformance
- Minimal 0.5% revenue growth
- 7.6% FCF margin compression risks
Stock #5: Joint Stock Company Kaspi.kz (KSPI)
| Metric | Value |
|---|---|
| Market Cap | $15.0B |
| Quality Rating | 6.1 |
| Intrinsic Value | $593.6 |
| 1Y Return | -22.1% |
| Revenue | KZT 3,620.2B |
| Free Cash Flow | KZT 502.0B |
| Revenue Growth | 53.1% |
| FCF margin | 13.9% |
| Gross margin | 64.2% |
| ROIC | 39.4% |
| Total Debt to Equity | 18.7% |
Investment Thesis
Joint Stock Company Kaspi.kz (KSPI) scores a Quality rating of 6.1 with $15.0B market cap and intrinsic value of $593.6. It boasts KZT 3,620.2B revenue (53.1% growth), KZT 502.0B FCF (13.9% margin), 64.2% gross margin, 39.4% ROIC, and 18.7% debt-to-equity. -22.1% 1Y return contrasts high growth, ideal for emerging market stock picks.
Key Catalysts
- 53.1% revenue growth in Kazakhstan
- 39.4% ROIC and 64.2% gross margin
- Strong FCF at KZT 502.0B
- Regional dominance potential
Risk Factors
- -22.1% 1Y return from local volatility
- Currency risks with KZT reporting
- 18.7% debt-to-equity in expansion
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Stock #6: ACI Worldwide, Inc. (ACIW)
| Metric | Value |
|---|---|
| Market Cap | $4,485.0M |
| Quality Rating | 6.5 |
| Intrinsic Value | $88.1 |
| 1Y Return | -20.2% |
| Revenue | $1,731.2M |
| Free Cash Flow | $312.9M |
| Revenue Growth | 7.0% |
| FCF margin | 18.1% |
| Gross margin | 49.7% |
| ROIC | 13.6% |
| Total Debt to Equity | 60.2% |
Investment Thesis
ACI Worldwide, Inc. (ACIW) earns a Quality rating of 6.5, $4,485.0M market cap, and $88.1 intrinsic value. Metrics show $1,731.2M revenue (7.0% growth), $312.9M FCF (18.1% margin), 49.7% gross margin, 13.6% ROIC, and 60.2% debt-to-equity. -20.2% 1Y return highlights payment software value.
Key Catalysts
- 18.1% FCF margin efficiency
- 7.0% revenue growth steady
- 49.7% gross margin profitability
- Infrastructure demand
Risk Factors
- -20.2% 1Y return
- High 60.2% debt-to-equity
- Lower 13.6% ROIC
Stock #7: StoneCo Ltd. (STNE)
| Metric | Value |
|---|---|
| Market Cap | $4,396.6M |
| Quality Rating | 6.6 |
| Intrinsic Value | $91.4 |
| 1Y Return | 69.7% |
| Revenue | R$13.8B |
| Free Cash Flow | (R$1,301.5M) |
| Revenue Growth | 12.0% |
| FCF margin | (9.4%) |
| Gross margin | 74.6% |
| ROIC | 15.9% |
| Total Debt to Equity | 137.0% |
Investment Thesis
StoneCo Ltd. (STNE) has Quality rating 6.6, $4,396.6M market cap, $91.4 intrinsic value. R$13.8B revenue (12.0% growth), negative R$1,301.5M FCF (-9.4% margin), 74.6% gross margin, 15.9% ROIC, but high 137.0% debt-to-equity. 69.7% 1Y return shows recovery in Brazilian fintech.
Key Catalysts
- 69.7% 1Y return momentum
- 12.0% revenue growth
- 74.6% gross margin strength
- 15.9% ROIC improving
Risk Factors
- Negative -9.4% FCF margin
- Elevated 137.0% debt-to-equity
- Brazil economic risks
Stock #8: DLocal Limited (DLO)
| Metric | Value |
|---|---|
| Market Cap | $4,171.9M |
| Quality Rating | 7.3 |
| Intrinsic Value | $26.2 |
| 1Y Return | -0.4% |
| Revenue | $960.2M |
| Free Cash Flow | $151.6M |
| Revenue Growth | 31.6% |
| FCF margin | 15.8% |
| Gross margin | 38.6% |
| ROIC | 253.4% |
| Total Debt to Equity | 0.7% |
Investment Thesis
DLocal Limited (DLO) boasts Quality rating 7.3, $4,171.9M market cap, $26.2 intrinsic value. $960.2M revenue (31.6% growth), $151.6M FCF (15.8% margin), 38.6% gross margin, standout 253.4% ROIC, and minimal 0.7% debt-to-equity. -0.4% 1Y return belies strong metrics for emerging payments.
Key Catalysts
- 253.4% ROIC exceptional
- 31.6% revenue growth
- 15.8% FCF margin
- Near-zero 0.7% debt
Risk Factors
- Flat -0.4% 1Y return
- Emerging market volatility
- Scaling pressures
Stock #9: Q2 Holdings, Inc. (QTWO)
| Metric | Value |
|---|---|
| Market Cap | $3,806.8M |
| Quality Rating | 6.1 |
| Intrinsic Value | $83.4 |
| 1Y Return | -37.3% |
| Revenue | $769.6M |
| Free Cash Flow | $169.8M |
| Revenue Growth | 13.9% |
| FCF margin | 22.1% |
| Gross margin | 53.4% |
| ROIC | 2.4% |
| Total Debt to Equity | 86.5% |
Investment Thesis
Q2 Holdings, Inc. (QTWO) rates 6.1 quality, $3,806.8M market cap, $83.4 intrinsic value. $769.6M revenue (13.9% growth), $169.8M FCF (22.1% margin), 53.4% gross margin, 2.4% ROIC, 86.5% debt-to-equity. -37.3% 1Y return flags banking software opportunity.
Key Catalysts
- 22.1% FCF margin high
- 13.9% revenue growth
- 53.4% gross margin
- Digital banking tailwinds
Risk Factors
- Low 2.4% ROIC
- -37.3% 1Y return
- 86.5% debt-to-equity
Stock #10: Paymentus Holdings, Inc. (PAY)
| Metric | Value |
|---|---|
| Market Cap | $3,404.3M |
| Quality Rating | 7.1 |
| Intrinsic Value | $18.2 |
| 1Y Return | -16.7% |
| Revenue | $1,123.9M |
| Free Cash Flow | $144.5M |
| Revenue Growth | 44.3% |
| FCF margin | 12.9% |
| Gross margin | 24.8% |
| ROIC | 28.8% |
| Total Debt to Equity | 1.4% |
Investment Thesis
Paymentus Holdings, Inc. (PAY) scores Quality rating 7.1, $3,404.3M market cap, $18.2 intrinsic value. $1,123.9M revenue (44.3% growth), $144.5M FCF (12.9% margin), 24.8% gross margin, 28.8% ROIC, low 1.4% debt-to-equity. -16.7% 1Y return with high growth suits value stocks portfolios.
Key Catalysts
- 44.3% revenue growth explosive
- 28.8% ROIC solid
- 12.9% FCF margin
- Low 1.4% debt
Risk Factors
- -16.7% 1Y return
- Lower 24.8% gross margin
- Execution in scaling
Portfolio Diversification Insights
These 10 fintech stock picks provide balanced exposure across subsectors: e-commerce (SHOP), digital banks (NU, KSPI), processors (PYPL, XYZ, STNE, DLO, PAY), and software (ACIW, QTWO). Larger caps like SHOP and NU offer stability (avg. quality 7.0+), while mid/small caps (e.g., DLO's 253.4% ROIC, KSPI's 53.1% growth) add growth. Sector allocation: 70% payments/banking, 30% infrastructure. Low-debt leaders (DLO, PAY) hedge high-leverage ones (STNE, QTWO). Combined, they reduce single-stock risk, with average revenue growth ~22% and FCF-positive majority enhancing portfolio diversification in fintech.
Market Timing & Entry Strategies
Consider entry on pullbacks to intrinsic values (e.g., SHOP near $26.9, NU at $80.4), monitoring Q4 earnings for growth confirmation. Dollar-cost average into high-quality names (7.0+ ratings: SHOP, DLO, PAY) during sector dips. Watch macro factors like interest rates impacting debt-heavy picks (PYPL, ACIW). Use ValueSense tools for real-time updates; position sizing 5-10% per stock for stock watchlist implementation.
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FAQ Section
How were these stocks selected?
These 10 best fintech stock picks were chosen using ValueSense criteria: high quality ratings (avg. 6.7), intrinsic values above implied prices, strong revenue growth (avg. 22%), and positive FCF where applicable, focusing on undervalued opportunities.
What's the best stock from this list?
DLocal (DLO) leads with 7.3 quality rating, 253.4% ROIC, 31.6% growth, and minimal debt, though all offer unique value—compare via individual stock analysis on ValueSense.
Should I buy all these stocks or diversify?
Diversify across the list for fintech exposure, allocating by quality and risk (e.g., 40% large caps like SHOP/NU). This stock watchlist supports balanced portfolios, not all-in positions.
What are the biggest risks with these picks?
Key risks include negative 1Y returns (avg. -10%), high debt in some (e.g., STNE 137%), growth slowdowns (PYPL 4.5%), and regional volatility (KSPI, STNE)—review risk factors per stock.
When is the best time to invest in these stocks?
Target dips toward intrinsic values or post-earnings beats, especially high-growth names like PAY 44.3% and KSPI 53.1%. Use market timing strategies with ValueSense for optimal entry.