10 Best Supplychaintech for February 2026
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Market Overview & Selection Criteria
The supply chain tech sector is experiencing steady evolution amid global trade dynamics and digital transformation demands, with companies focusing on e-commerce, logistics software, and fintech solutions for efficiency. ValueSense selected these 10 best supply chain tech stock picks based on intrinsic value assessments, quality ratings above 4.9, strong revenue growth, positive ROIC, and potential undervaluation where intrinsic value suggests upside relative to market positioning. Methodology emphasizes undervalued stocks with robust free cash flow margins, high gross margins, and manageable debt levels, drawn exclusively from ValueSense data for educational analysis on growth opportunities in this niche.
Featured Stock Analysis
Stock #1: Amazon.com, Inc. (AMZN)
| Metric | Value |
|---|---|
| Market Cap | $2,571.2B |
| Quality Rating | 6.1 |
| Intrinsic Value | $164.8 |
| 1Y Return | 2.0% |
| Revenue | $691.3B |
| Free Cash Flow | $10.6B |
| Revenue Growth | 11.5% |
| FCF margin | 1.5% |
| Gross margin | 50.5% |
| ROIC | 15.4% |
| Total Debt to Equity | 36.6% |
Investment Thesis
Amazon.com, Inc. (AMZN) stands out in supply chain tech with its massive scale, boasting a market cap of $2,571.2B and trailing revenue of $691.3B. Despite a modest 1Y return of 2.0%, its intrinsic value of $164.8 highlights potential undervaluation, supported by a quality rating of 6.1. Key financials include 11.5% revenue growth, $10.6B free cash flow (1.5% FCF margin), 50.5% gross margin, 15.4% ROIC, and total debt to equity at 36.6%. This positions AMZN as a foundational player in e-commerce logistics and cloud-enabled supply chain tools, offering stability for value-focused analysis.
Key Catalysts
- Dominant revenue scale at $691.3B drives network effects in supply chain infrastructure.
- Solid 50.5% gross margin supports reinvestment in tech innovations.
- 15.4% ROIC indicates efficient capital use amid ongoing expansion.
Risk Factors
- Low 1.5% FCF margin signals cash flow pressures from high investments.
- 36.6% debt to equity requires monitoring in volatile markets.
- Modest 2.0% 1Y return reflects short-term market challenges.
Stock #2: 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), with a market cap of $175.4B, earns a strong quality rating of 7.3 and intrinsic value of $26.9, suggesting undervaluation potential despite a 10.1% 1Y return. Revenue reached $10.7B with 30.3% growth, $1,910.9M free cash flow (17.9% FCF margin), 48.7% gross margin, exceptional 57.9% ROIC, and low 8.9% total debt to equity. SHOP's platform empowers supply chain tech for e-commerce merchants, making it a high-growth pick in ValueSense's stock watchlist for merchants scaling globally.
Key Catalysts
- Impressive 30.3% revenue growth fuels e-commerce supply chain adoption.
- 57.9% ROIC demonstrates superior returns on merchant tools.
- 17.9% FCF margin provides flexibility for platform enhancements.
Risk Factors
- Intrinsic value at $26.9 may indicate pricing disconnects if growth slows.
- High market cap exposure to economic downturns in retail.
- Competition in e-commerce platforms could pressure margins.
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) offers fintech innovation for supply chain with a market cap of $87.4B, quality rating 6.8, and high intrinsic value of $80.4 paired with 32.1% 1Y return. Metrics include $13.5B revenue (28.5% growth), $3,665.8M free cash flow (27.1% FCF margin), 43.0% gross margin, 35.8% ROIC, and 23.1% debt to equity. This digital banking leader supports transaction efficiency in logistics, positioning it as a top stock pick for emerging market supply chain finance.
Key Catalysts
- Strong 32.1% 1Y return and 28.5% revenue growth signal momentum.
- 27.1% FCF margin bolsters scalability in fintech services.
- 35.8% ROIC highlights efficient growth in underserved regions.
Risk Factors
- Emerging market volatility could impact revenue stability.
- 23.1% debt levels warrant caution in rate hikes.
- Dependence on digital adoption for sustained expansion.
Stock #4: 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) delivers supply chain software with market cap $9,040.8M, quality rating 6.7, and intrinsic value $111.3, despite -29.5% 1Y return. Revenue is $1,081.4M (3.7% growth), free cash flow $231.6M (21.4% margin), 55.7% gross margin, standout 66.2% ROIC, and 35.7% debt to equity. Its warehouse management solutions make MANH a value play for optimization-focused investors.
Key Catalysts
- Exceptional 66.2% ROIC shows capital efficiency in software.
- 55.7% gross margin supports R&D in supply chain tech.
- 21.4% FCF margin aids resilience despite slower growth.
Risk Factors
- -29.5% 1Y return indicates recent market headwinds.
- Low 3.7% revenue growth risks competitive erosion.
- 35.7% debt to equity in a high-rate environment.
Stock #5: 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), market cap $6,422.9M, holds a quality rating of 6.7 and intrinsic value $68.1, with -36.4% 1Y return. It reports $701.8M revenue (11.3% growth), $244.0M free cash flow (34.8% margin), 73.9% gross margin, 10.7% ROIC, and minimal 0.5% debt to equity. DSGX excels in logistics visibility tools, appealing for undervalued stocks in global trade.
Key Catalysts
- High 73.9% gross margin drives profitability in SaaS.
- 34.8% FCF margin enables acquisitions and growth.
- Near-zero debt 0.5% provides balance sheet strength.
Risk Factors
- -36.4% 1Y return reflects sector pressures.
- Moderate 10.7% ROIC trails peers in efficiency.
- Slower enterprise sales cycles could delay revenue.
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Stock #6: 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) features market cap $4,999.8M, quality rating 4.9, and elevated intrinsic value $122.9 amid -7.4% 1Y return. Revenue hits $51.0B (7.1% growth), free cash flow $98.9M (0.2% margin), 6.8% gross margin, 8.6% ROIC, and 29.6% debt to equity. As a distributor, INGM supports supply chain hardware flow.
Key Catalysts
- Massive $51.0B revenue scale in distribution networks.
- 7.1% growth amid stabilizing tech demand.
- Intrinsic value upside at $122.9 for long-term holders.
Risk Factors
- Thin 0.2% FCF margin exposes cash vulnerabilities.
- Low 6.8% gross margin limits pricing power.
- 4.9 quality rating signals operational challenges.
Stock #7: 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) has market cap $3,317.5M, quality rating 6.8, intrinsic value $119.5, and -51.3% 1Y return. Revenue is $729.8M (19.3% growth), free cash flow $148.4M (20.3% margin), 68.4% gross margin, 9.2% ROIC, and 1.0% debt to equity. Its EDI solutions enhance supply chain connectivity.
Key Catalysts
- 19.3% revenue growth in cloud-based networks.
- Strong 68.4% gross margin for scalability.
- Low 1.0% debt supports steady expansion.
Risk Factors
- Sharp -51.3% 1Y return demands recovery monitoring.
- 9.2% ROIC below top peers.
- Competition in supply chain software integration.
Stock #8: 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) shines with market cap $1,510.5M, top quality rating 7.5, intrinsic value $131.9, and stellar 75.8% 1Y return. Revenue $1,222.9M (10.2% growth), free cash flow $188.1M (15.4% margin), 23.1% gross margin, 21.3% ROIC, but high 101.0% debt to equity. B2B platform drives marketplace efficiency.
Key Catalysts
- Outstanding 75.8% 1Y return and 7.5 quality score.
- 21.3% ROIC fuels high-growth trajectory.
- 15.4% FCF margin backs platform investments.
Risk Factors
- Elevated 101.0% debt to equity poses leverage risk.
- 23.1% gross margin vulnerable to pricing wars.
- Rapid growth may strain operations.
Stock #9: Karooooo Ltd. (KARO)
| Metric | Value |
|---|---|
| Market Cap | $1,510.2M |
| Quality Rating | 6.6 |
| Intrinsic Value | $64.1 |
| 1Y Return | 6.5% |
| Revenue | ZAR 5,232.7M |
| Free Cash Flow | ZAR 902.5M |
| Revenue Growth | 18.0% |
| FCF margin | 17.2% |
| Gross margin | 69.3% |
| ROIC | 33.7% |
| Total Debt to Equity | 24.8% |
Investment Thesis
Karooooo Ltd. (KARO), market cap $1,510.2M, quality rating 6.6, intrinsic value $64.1, 6.5% 1Y return. Revenue ZAR 5,232.7M (18.0% growth), free cash flow ZAR 902.5M (17.2% margin), 69.3% gross margin, 33.7% ROIC, 24.8% debt to equity. Fleet management tech optimizes logistics.
Key Catalysts
- 18.0% revenue growth in telematics solutions.
- 33.7% ROIC and 69.3% gross margin strength.
- 17.2% FCF margin for regional dominance.
Risk Factors
- Currency exposure in ZAR-denominated metrics.
- 24.8% debt amid emerging market risks.
- Moderate 6.5% 1Y return lags high-flyers.
Stock #10: Full Truck Alliance Co. Ltd. (YMM)
| Metric | Value |
|---|---|
| Market Cap | $521.9M |
| Quality Rating | 6.4 |
| Intrinsic Value | $4,080.4 |
| 1Y Return | -15.1% |
| Revenue | CN¥12.5B |
| Free Cash Flow | CN¥0.0 |
| Revenue Growth | 19.1% |
| FCF margin | 0.0% |
| Gross margin | 70.1% |
| ROIC | 34.1% |
| Total Debt to Equity | 0.1% |
Investment Thesis
Full Truck Alliance Co. Ltd. (YMM) closes the list with market cap $521.9M, quality rating 6.4, extreme intrinsic value $4,080.4, -15.1% 1Y return. Revenue CN¥12.5B (19.1% growth), free cash flow CN¥0.0 (0.0% margin), 70.1% gross margin, 34.1% ROIC, negligible 0.1% debt. Trucking platform digitizes freight matching.
Key Catalysts
- 19.1% revenue growth in massive China market.
- 34.1% ROIC despite zero FCF currently.
- 70.1% gross margin and low debt for upside.
Risk Factors
- 0.0% FCF margin indicates cash burn phase.
- Geopolitical risks in CN¥ metrics.
- -15.1% 1Y return reflects platform maturity needs.
Portfolio Diversification Insights
These 10 best stock picks cluster in supply chain tech, with giants like AMZN and SHOP providing e-commerce stability (large-cap ~40% allocation), mid-caps like MANH and DSGX adding software depth 30%, and small-caps like GCT and YMM offering high-growth exposure 30%. Fintech (NU) and logistics (KARO, YMM) diversify risks, balancing high ROIC leaders (SHOP at 57.9%, MANH at 66.2%) against scale players. Low-debt names (DSGX 0.5%, YMM 0.1%) offset leveraged ones (GCT 101.0%), creating a resilient stock watchlist for sector rotation.
Market Timing & Entry Strategies
Consider positions during supply chain disruptions or e-commerce surges, targeting entries when prices approach intrinsic values (e.g., SHOP near $26.9, GCT near $131.9). Dollar-cost average into high-quality ratings (7.0+ like SHOP, GCT) on dips below 1Y returns, monitoring revenue growth >15% for momentum. Use ROIC >20% as confirmation for scaling, with stops near debt thresholds.
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FAQ Section
How were these stocks selected?
Selected via ValueSense criteria focusing on intrinsic value, quality ratings (4.9-7.5), revenue growth (3.7-30.3%), and ROIC (8.6-66.2%) for supply chain tech opportunities.
What's the best stock from this list?
GigaCloud Technology (GCT) leads with 7.5 quality rating, 75.8% 1Y return, and $131.9 intrinsic value, though analysis favors diversification.
Should I buy all these stocks or diversify?
Diversify across large/mid/small caps for balance, as this stock watchlist spans e-commerce, software, and fintech to mitigate sector risks.
What are the biggest risks with these picks?
Key concerns include low FCF margins (e.g., INGM 0.2%), negative 1Y returns (e.g., SPSC -51.3%), high debt (GCT 101.0%), and currency/geopolitical exposures.
When is the best time to invest in these stocks?
Optimal during market pullbacks aligning prices with intrinsic values, prioritizing high-growth names like SHOP (30.3% revenue) amid supply chain recoveries.