10 Best Transportation Logistics Software for February 2026
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Market Overview & Selection Criteria
The transportation and logistics software sector is experiencing dynamic shifts driven by digital transformation, supply chain optimization, and AI integration, making it a fertile ground for stock picks in undervalued companies. ValueSense selected these 10 stocks using its proprietary machine learning-driven screener, focusing on intrinsic value estimates, quality ratings, ROIC, revenue growth, and FCF margins to identify opportunities trading below fair value. Criteria emphasize high gross margins, strong cash generation, and sector relevance in logistics tech, drawn exclusively from ValueSense data for educational analysis.
Featured Stock Analysis
Stock #1: 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) stands out with a Market Cap of $38.9B and a Quality rating of 6.0, showcasing robust financials including Revenue of $7,902.5M and Free Cash Flow of $1,764.7M. Its Intrinsic value of $515.6 suggests significant undervaluation potential, supported by a healthy Gross margin of 69.2% and zero Total Debt to Equity at 0.0%. Despite a 1Y Return of -34.9%, Revenue growth of 12.3% and FCF margin of 22.3% highlight operational strength in transportation logistics software applications. ROIC at 5.7% indicates efficient capital use, positioning ROP for long-term value in diversified tech solutions.
This analysis reveals ROP's balance sheet as a fortress with no debt, enabling aggressive growth pursuits in software for logistics efficiency.
Key Catalysts
- Strong Revenue growth of 12.3% fueling expansion in logistics tech
- Exceptional Gross margin of 69.2% supporting scalability
- Debt-free balance sheet (0.0% Total Debt to Equity) for flexible investments
- Solid FCF generation at $1,764.7M for shareholder returns
Risk Factors
- Modest ROIC of 5.7% may lag high-growth peers
- Recent 1Y Return decline of -34.9% amid market volatility
Stock #2: 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 Market Cap of $9,040.8M and a strong Quality rating of 6.7, with Revenue at $1,081.4M and Free Cash Flow of $231.6M. The Intrinsic value of $111.3 points to undervaluation, bolstered by an impressive ROIC of 66.2% and FCF margin of 21.4%. Even with a 1Y Return of -29.5%, Gross margin of 55.7% and Revenue growth of 3.7% underscore its stability in supply chain software for transportation logistics. Total Debt to Equity at 35.7% remains manageable, supporting sustained profitability.
MANH's high ROIC reflects superior capital efficiency, ideal for investors analyzing logistics software leaders.
Key Catalysts
- Outstanding ROIC of 66.2% driving superior returns
- Healthy FCF margin of 21.4% for reinvestment
- Solid Gross margin of 55.7% in competitive sector
- Steady Revenue growth of 3.7% amid logistics demand
Risk Factors
- Slower Revenue growth at 3.7% versus hyper-growth peers
- 1Y Return drop of -29.5% signaling short-term pressure
Stock #3: 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) boasts a Market Cap of $7,235.2M and Quality rating of 5.2, with explosive Revenue of $707.2B and Free Cash Flow of $90.2B. Revenue growth at 96,025.2% highlights hyper-scaling in field service software tied to logistics, while Intrinsic value of $14.0K indicates deep undervaluation. Gross margin of 70.2% and FCF margin of 12.8% support growth, despite ROIC at 11.3% and low Total Debt to Equity of 3.6%. 1Y Return of -21.9% presents an entry for high-potential plays.
TTAN's massive scale positions it as a logistics-adjacent disruptor with room for profitability improvements.
Key Catalysts
- Phenomenal Revenue growth of 96,025.2% signaling dominance
- High Gross margin of 70.2% for margin expansion
- Strong FCF at $90.2B funding innovation
- Minimal debt (3.6% Total Debt to Equity)
Risk Factors
- Negative ROIC of 11.3% indicating capital inefficiency
- 1Y Return decline of -21.9% from scaling costs
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) has a Market Cap of $6,422.9M and Quality rating of 6.7, generating Revenue of $701.8M and Free Cash Flow of $244.0M. Intrinsic value at $68.1 suggests undervaluation, with top-tier FCF margin of 34.8% and Gross margin of 73.9%. Revenue growth of 11.3% and ROIC of 10.7% affirm its logistics software prowess, despite 1Y Return of -36.4%. Low Total Debt to Equity of 0.5% enhances stability.
DSGX excels in high-margin logistics optimization, appealing for undervalued stocks in transportation tech.
Key Catalysts
- Exceptional FCF margin of 34.8% for cash-rich operations
- Leading Gross margin of 73.9%
- Consistent Revenue growth of 11.3%
- Near-zero debt (0.5% Total Debt to Equity)
Risk Factors
- Sharp 1Y Return drop of -36.4%
- Moderate ROIC of 10.7%
Stock #5: WEX Inc. (WEX)
| Metric | Value |
|---|---|
| Market Cap | $5,262.5M |
| Quality Rating | 6.0 |
| Intrinsic Value | $477.8 |
| 1Y Return | -17.4% |
| Revenue | $2,624.5M |
| Free Cash Flow | $657.1M |
| Revenue Growth | (1.1%) |
| FCF margin | 25.0% |
| Gross margin | 59.1% |
| ROIC | 8.0% |
| Total Debt to Equity | 116.8% |
Investment Thesis
WEX Inc. (WEX) shows Market Cap of $5,262.5M and Quality rating of 6.0, with Revenue of $2,624.5M and robust Free Cash Flow of $657.1M. Intrinsic value of $477.8 highlights undervaluation, backed by FCF margin of 25.0% and Gross margin of 59.1%. Despite slight Revenue growth contraction at 1.1% and 1Y Return of -17.4%, ROIC of 8.0% supports its fleet payment solutions in logistics.
WEX's cash flow strength mitigates debt concerns in payments-logistics intersection.
Key Catalysts
- Powerful FCF of $657.1M
- Strong FCF margin of 25.0%
- Solid Gross margin of 59.1%
- Reliable ROIC of 8.0%
Risk Factors
- Revenue dip of 1.1%
- Elevated Total Debt to Equity at 116.8%
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Stock #6: NextNav Inc. (NN)
| Metric | Value |
|---|---|
| Market Cap | $1,973.4M |
| Quality Rating | 4.9 |
| Intrinsic Value | $1.8 |
| 1Y Return | 22.4% |
| Revenue | $5,539.0K |
| Free Cash Flow | ($46.9M) |
| Revenue Growth | 11.6% |
| FCF margin | (847.4%) |
| Gross margin | (43.7%) |
| ROIC | (64.5%) |
| Total Debt to Equity | (70.9%) |
Investment Thesis
NextNav Inc. (NN) has Market Cap of $1,973.4M and Quality rating of 4.9, with modest Revenue of $5,539.0K but positive 1Y Return of 22.4%. Intrinsic value of $1.8 contrasts with challenges like negative Free Cash Flow of $46.9M and FCF margin of 847.4%. Revenue growth of 11.6% offers upside in location tech for logistics, though Gross margin is 43.7%, ROIC 64.5%, and Total Debt to Equity 70.9% flag early-stage risks.
NN represents speculative growth in next-gen logistics positioning.
Key Catalysts
- Positive 1Y Return of 22.4%
- Revenue growth of 11.6%
- Potential in emerging logistics tech
Risk Factors
- Severe negative FCF margin of 847.4%
- Poor ROIC of 64.5% and negative margins
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) features Market Cap of $1,510.5M and top Quality rating of 7.5, with Revenue of $1,222.9M and Free Cash Flow of $188.1M. Stellar 1Y Return of 75.8% pairs with Intrinsic value of $131.9, ROIC of 21.3%, and Revenue growth of 10.2%. FCF margin of 15.4% supports logistics marketplace growth, despite lower Gross margin of 23.1% and Total Debt to Equity of 101.0%.
GCT's momentum makes it a standout in stock watchlist for logistics e-commerce.
Key Catalysts
- Impressive 1Y Return of 75.8%
- High Quality rating 7.5 and ROIC 21.3%
- Steady Revenue growth 10.2%
Risk Factors
- High Total Debt to Equity 101.0%
- Lower Gross margin 23.1%
Stock #8: 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) holds Market Cap of $1,510.2M and Quality rating of 6.6, reporting Revenue of ZAR 5,232.7M and Free Cash Flow of ZAR 902.5M. Intrinsic value of $64.1 and 1Y Return of 6.5% align with Revenue growth of 18.0%, FCF margin 17.2%, Gross margin 69.3%, ROIC 33.7%, and Total Debt to Equity 24.8%. Strong metrics position it for fleet management software expansion.
KARO's high ROIC shines in international logistics.
Key Catalysts
- Excellent ROIC 33.7%
- Robust Revenue growth 18.0%
- High Gross margin 69.3%
Risk Factors
- Modest 1Y Return 6.5%
- Currency exposure in ZAR
Stock #9: PowerFleet, Inc. (AIOT)
| Metric | Value |
|---|---|
| Market Cap | $682.4M |
| Quality Rating | 5.4 |
| Intrinsic Value | $10.2 |
| 1Y Return | -16.4% |
| Revenue | $425.9M |
| Free Cash Flow | ($10.3M) |
| Revenue Growth | 92.9% |
| FCF margin | (2.4%) |
| Gross margin | 54.6% |
| ROIC | (0.6%) |
| Total Debt to Equity | 12.0% |
Investment Thesis
PowerFleet, Inc. (AIOT) has Market Cap of $682.4M and Quality rating of 5.4, with Revenue of $425.9M and Revenue growth of 92.9%. Intrinsic value $10.2 amid 1Y Return -16.4%, negative Free Cash Flow $10.3M, and FCF margin 2.4%. Gross margin 54.6%, ROIC 0.6%, and low Total Debt to Equity 12.0% suggest turnaround potential in IoT logistics.
AIOT's growth trajectory warrants monitoring.
Key Catalysts
- Explosive Revenue growth 92.9%
- Decent Gross margin 54.6%
Risk Factors
- Negative FCF and ROIC 0.6%
- 1Y Return decline -16.4%
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) exhibits Market Cap $521.9M and Quality rating 6.4, with Revenue CN¥12.5B, Revenue growth 19.1%, and Gross margin 70.1%. Intrinsic value $4,080.4 signals undervaluation, with ROIC 34.1% and minimal Total Debt to Equity 0.1%, despite zero Free Cash Flow and 1Y Return -15.1%.
YMM's platform dominance in trucking logistics offers scale potential.
Key Catalysts
- High ROIC 34.1% and Revenue growth 19.1%
- Strong Gross margin 70.1%
- Low debt 0.1%
Risk Factors
- Zero FCF and margin
- 1Y Return -15.1%
Portfolio Diversification Insights
These 10 stocks cluster in transportation logistics software, with larger caps like ROP and MANH providing stability (high FCF, low debt) alongside high-growth plays like TTAN and AIOT (explosive revenue). Sector allocation leans 100% tech-logistics, balancing US giants 70% with international (KARO, YMM at 30%). Pair high-quality (GCT 7.5 rating) with recovery names (NN) for diversified stock watchlist exposure, reducing single-stock risk via complementary software functions from payments (WEX) to fleet tracking (KARO).
Market Timing & Entry Strategies
Consider entries on dips below intrinsic value thresholds (e.g., ROP under $515.6), monitoring Q4 earnings for revenue beats. Dollar-cost average into high-conviction picks like GCT amid volatility, using ValueSense screeners for ROIC >10% confirmation. Watch macro logistics demand from e-commerce; enter post-corrections for 1Y underperformers like DSGX.
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FAQ Section
How were these stocks selected?
These stocks were curated via ValueSense's machine learning screener, prioritizing intrinsic value upside, quality ratings above 5.0, strong margins, and relevance to transportation logistics software.
What's the best stock from this list?
GigaCloud Technology Inc. (GCT) leads with a 7.5 Quality rating, 75.8% 1Y Return, and $131.9 intrinsic value, though analysis favors diversification over single picks.
Should I buy all these stocks or diversify?
Diversify across the list for balanced exposure to stable (ROP) and growth (TTAN) profiles within logistics software, using ValueSense tools to align with risk tolerance.
What are the biggest risks with these picks?
Key risks include negative FCF/ROIC in early-stage firms (NN, AIOT), high debt (WEX), and market volatility impacting 1Y returns, balanced by strong margins in leaders.
When is the best time to invest in these stocks?
Optimal timing aligns with prices below intrinsic value, post-earnings catalysts, or sector recoveries; use ValueSense charting for trend confirmation in logistics demand cycles.