8 Best Supply Chain Management Software for February 2026
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Market Overview & Selection Criteria
The current market environment favors technology-driven companies in supply chain management software, where digital transformation accelerates amid global trade complexities and e-commerce growth. Value Sense's automated fundamental analysis platform identifies undervalued stocks by calculating intrinsic value, assessing quality ratings, and evaluating metrics like ROIC, revenue growth, and FCF margins. These 8 stocks were selected from curated watchlists focusing on supply chain themes, prioritizing those with strong gross margins, positive free cash flow, and potential undervaluation based on intrinsic value estimates versus market positioning. This educational analysis highlights opportunities in the sector using Value Sense data for retail investors seeking stock watchlist ideas.
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 a market cap of $175.4B, driven by robust revenue of $10.7B and revenue growth of 30.3%. The company's free cash flow reaches $1,910.9M with a solid FCF margin of 17.9% and gross margin of 48.7%, underpinned by an exceptional ROIC of 57.9%. Despite a 1Y Return of 10.1%, the intrinsic value of $26.9 suggests potential undervaluation, making it a key player in e-commerce supply chain solutions. Low Total Debt to Equity at 8.9% supports financial stability, positioning SHOP for sustained growth in platform-based logistics and merchant tools.
Key Catalysts
- High revenue growth of 30.3% fuels expansion in e-commerce infrastructure.
- Superior ROIC at 57.9% indicates efficient capital allocation.
- Strong FCF generation of $1,910.9M enables reinvestment and scaling.
Risk Factors
- Moderate 1Y Return of 10.1% amid competitive e-commerce pressures.
- Dependence on merchant adoption in volatile retail environments.
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), with a $87.4B market cap and Quality rating of 6.8, demonstrates fintech strength tied to supply chain financing via revenue of $13.5B and 28.5% growth. Free cash flow of $3,665.8M boasts a 27.1% FCF margin, complemented by 43.0% gross margin and ROIC of 35.8%. A 1Y Return of 32.1% reflects momentum, while intrinsic value at $80.4 points to undervaluation opportunities. Total Debt to Equity of 23.1% remains manageable, supporting digital banking integrations for supply chain efficiency.
Key Catalysts
- Impressive 1Y Return of 32.1% signals strong market traction.
- High FCF margin of 27.1% and revenue growth of 28.5%.
- Elevated ROIC of 35.8% for scalable fintech operations.
Risk Factors
- Emerging market exposure in Latin America volatility.
- Regulatory shifts in digital finance landscapes.
Stock #3: Manhattan Associates, Inc. (MANH)
| Metric | Value |
|---|---|
| Market Cap | $9,040.8M |
| Quality Rating | 6.7 |
| Intrinsic Value | $111.3 |
| 1Y Return | -29.5% |
| Revenue | $1,081.4M |
| Free Cash Flow | $231.6M |
| Revenue Growth | 3.7% |
| FCF margin | 21.4% |
| Gross margin | 55.7% |
| ROIC | 66.2% |
| Total Debt to Equity | 35.7% |
Investment Thesis
Manhattan Associates, Inc. (MANH) features a Quality rating of 6.7 and $9,040.8M market cap, with revenue at $1,081.4M growing 3.7%. Free cash flow of $231.6M yields a 21.4% FCF margin, strong gross margin of 55.7%, and top-tier ROIC of 66.2%. Despite a -29.5% 1Y Return, intrinsic value of $111.3 highlights recovery potential in warehouse management software. Total Debt to Equity at 35.7% is balanced for its supply chain focus.
Key Catalysts
- Exceptional ROIC of 66.2% drives operational efficiency.
- Healthy gross margin of 55.7% supports profitability.
- Steady FCF of $231.6M for software innovations.
Risk Factors
- Negative 1Y Return of -29.5% from market corrections.
- Slower revenue growth at 3.7% versus peers.
Stock #4: The Descartes Systems Group Inc. (DSGX)
| Metric | Value |
|---|---|
| Market Cap | $6,422.9M |
| Quality Rating | 6.7 |
| Intrinsic Value | $68.1 |
| 1Y Return | -36.4% |
| Revenue | $701.8M |
| Free Cash Flow | $244.0M |
| Revenue Growth | 11.3% |
| FCF margin | 34.8% |
| Gross margin | 73.9% |
| ROIC | 10.7% |
| Total Debt to Equity | 0.5% |
Investment Thesis
The Descartes Systems Group Inc. (DSGX) earns a 6.7 Quality rating and $6,422.9M market cap, powered by $701.8M revenue with 11.3% growth. Free cash flow of $244.0M achieves a leading 34.8% FCF margin and 73.9% gross margin, though ROIC is 10.7%. A -36.4% 1Y Return contrasts with intrinsic value of $68.1, indicating undervaluation in logistics software. Minimal Total Debt to Equity of 0.5% enhances stability.
Key Catalysts
- Outstanding FCF margin of 34.8% and gross margin of 73.9%.
- Consistent revenue growth of 11.3% in global trade tech.
- Low debt at 0.5% for financial flexibility.
Risk Factors
- Sharp 1Y Return decline of -36.4%.
- Moderate ROIC of 10.7% limits aggressive expansion.
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Stock #5: Ingram Micro Holding Corporation (INGM)
| Metric | Value |
|---|---|
| Market Cap | $4,999.8M |
| Quality Rating | 4.9 |
| Intrinsic Value | $122.9 |
| 1Y Return | -7.4% |
| Revenue | $51.0B |
| Free Cash Flow | $98.9M |
| Revenue Growth | 7.1% |
| FCF margin | 0.2% |
| Gross margin | 6.8% |
| ROIC | 8.6% |
| Total Debt to Equity | 29.6% |
Investment Thesis
Ingram Micro Holding Corporation (INGM) has a 4.9 Quality rating and $4,999.8M market cap, with massive $51.0B revenue growing 7.1%. Free cash flow of $98.9M shows a low 0.2% FCF margin, 6.8% gross margin, and ROIC of 8.6%. 1Y Return of -7.4% pairs with high intrinsic value of $122.9, suggesting distributor undervaluation. Total Debt to Equity at 29.6% warrants monitoring.
Key Catalysts
- Enormous revenue scale at $51.0B with 7.1% growth.
- High intrinsic value potential of $122.9.
- Distribution network advantages in supply chains.
Risk Factors
- Weak FCF margin of 0.2% and low gross margin 6.8%.
- Lower Quality rating of 4.9 signals caution.
Stock #6: SPS Commerce, Inc. (SPSC)
| Metric | Value |
|---|---|
| Market Cap | $3,317.5M |
| Quality Rating | 6.8 |
| Intrinsic Value | $119.5 |
| 1Y Return | -51.3% |
| Revenue | $729.8M |
| Free Cash Flow | $148.4M |
| Revenue Growth | 19.3% |
| FCF margin | 20.3% |
| Gross margin | 68.4% |
| ROIC | 9.2% |
| Total Debt to Equity | 1.0% |
Investment Thesis
SPS Commerce, Inc. (SPSC) scores a 6.8 Quality rating with $3,317.5M market cap, $729.8M revenue up 19.3%, and $148.4M free cash flow at 20.3% FCF margin. Gross margin of 68.4% and ROIC of 9.2% support EDI network strength, despite -51.3% 1Y Return. Intrinsic value of $119.5 flags undervaluation, with low 1.0% Total Debt to Equity.
Key Catalysts
- Robust revenue growth of 19.3% in cloud supply chain apps.
- Strong gross margin of 68.4% for margins expansion.
- Minimal debt at 1.0% aids resilience.
Risk Factors
- Significant 1Y Return drop of -51.3%.
- Subdued ROIC at 9.2%.
Stock #7: GigaCloud Technology Inc. (GCT)
| Metric | Value |
|---|---|
| Market Cap | $1,510.5M |
| Quality Rating | 7.5 |
| Intrinsic Value | $131.9 |
| 1Y Return | 75.8% |
| Revenue | $1,222.9M |
| Free Cash Flow | $188.1M |
| Revenue Growth | 10.2% |
| FCF margin | 15.4% |
| Gross margin | 23.1% |
| ROIC | 21.3% |
| Total Debt to Equity | 101.0% |
Investment Thesis
GigaCloud Technology Inc. (GCT) leads with a 7.5 Quality rating and $1,510.5M market cap, $1,222.9M revenue growing 10.2%, and $188.1M free cash flow at 15.4% FCF margin. ROIC of 21.3% shines, with 75.8% 1Y Return, though intrinsic value of $131.9 and high 101.0% Total Debt to Equity add layers to its B2B marketplace analysis.
Key Catalysts
- Stellar 1Y Return of 75.8% momentum.
- High Quality rating 7.5 and ROIC 21.3%.
- Growing revenue at 10.2% in cloud logistics.
Risk Factors
- Elevated Total Debt to Equity of 101.0%.
- Lower gross margin of 23.1%.
Stock #8: ReposiTrak, Inc. (TRAK)
| Metric | Value |
|---|---|
| Market Cap | $193.3M |
| Quality Rating | 7.0 |
| Intrinsic Value | $14.5 |
| 1Y Return | -50.8% |
| Revenue | $23.1M |
| Free Cash Flow | $8,062.0K |
| Revenue Growth | 11.0% |
| FCF margin | 34.8% |
| Gross margin | 84.1% |
| ROIC | 30.8% |
| Total Debt to Equity | 0.9% |
Investment Thesis
ReposiTrak, Inc. (TRAK), a smaller cap at $193.3M with 7.0 Quality rating, reports $23.1M revenue up 11.0% and $8,062.0K free cash flow at 34.8% FCF margin. Exceptional 84.1% gross margin and 30.8% ROIC stand out, despite -50.8% 1Y Return and intrinsic value of $14.5. Low 0.9% Total Debt to Equity bolsters its traceability software niche.
Key Catalysts
- Top gross margin of 84.1% and FCF margin 34.8%.
- Strong ROIC of 30.8% for niche dominance.
- Debt-free profile at 0.9%.
Risk Factors
- Steep 1Y Return loss of -50.8%.
- Small market cap increases volatility.
Portfolio Diversification Insights
These 8 stocks cluster in supply chain management software and related tech, offering diversification across market caps from mega-cap SHOP $175.4B to micro-cap TRAK $193.3M. Larger names like SHOP and NU provide stability with high revenue scale, while mid-caps like MANH and DSGX emphasize high-margin software (e.g., 73.9% gross for DSGX). Smaller picks like GCT and TRAK add high-growth potential (7.5 and 7.0 quality ratings). Sector allocation leans 100% tech/supply chain, balancing high-ROIC leaders (MANH 66.2%) with undervalued plays (e.g., INGM intrinsic $122.9). Combining them reduces single-stock risk, with low-debt profiles (e.g., DSGX 0.5%) offsetting leveraged ones like GCT 101.0%.
Market Timing & Entry Strategies
Consider positions during sector dips, such as post-earnings volatility or broader tech pullbacks, where intrinsic value gaps widen (e.g., SHOP at $26.9, GCT at $131.9). Monitor revenue growth trends—enter on accelerations like SHOP's 30.3%—and use Value Sense screeners for ROIC >15% thresholds. Dollar-cost average into high-quality names (ratings 6.7+), scaling on FCF margin improvements. Track macroeconomic shifts like trade policy changes favoring supply chain tech.
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FAQ Section
How were these stocks selected?
These stocks were curated using Value Sense's machine learning-driven analysis, focusing on supply chain management software themes with strong quality ratings, high ROIC, and undervaluation per intrinsic value metrics.
What's the best stock from this list?
GigaCloud Technology (GCT) stands out with a top 7.5 Quality rating, 75.8% 1Y Return, and intrinsic value of $131.9, though all offer unique stock picks based on risk tolerance.
Should I buy all these stocks or diversify?
Diversification across market caps and growth profiles (e.g., SHOP stability vs. TRAK niche) is key; allocate based on portfolio needs rather than concentrating in one.
What are the biggest risks with these picks?
Common risks include negative 1Y Returns (e.g., SPSC -51.3%), high debt (GCT 101.0%), and sector volatility from economic slowdowns affecting supply chains.
When is the best time to invest in these stocks?
Optimal entry aligns with undervaluation signals like wide intrinsic value gaps and positive revenue growth momentum, using backtested strategies on Value Sense for timing.