Stocks With the Fastest-Growing Fair Values

Fair value isn't static. When a company compounds its return on invested capital at high rates, the intrinsic value of that business grows — sometimes quickly. We ran a screen for companies showing strong recent ROIC alongside accelerating profitability metrics, and these fifteen names surfaced. Some are obvious, some are surprising, and a couple warrant real skepticism. Here's what the data shows.

The Compounding Machines

Tenet Healthcare is the most extreme number on this list, and extreme numbers deserve scrutiny before celebration. A current ROIC of 498.56% and a 5-year average of 2,141.38% sounds absurd — because it is, in the sense that these figures reflect a heavily leveraged balance sheet with minimal equity in the denominator. That said, with a Quality score of 8/9, 57.41% gross margins, and a P/FCF of just 11.22, the market isn't paying a premium for whatever is working here. Worth the deep dive.

Nu Holdings is the growth story that actually has the numbers to back it up. A 5-year average ROIC of 378.43% is eye-catching, and the current 56.53% shows the business hasn't matured into mediocrity. At an $85.7B market cap, it's the largest name on this list, which means the compounding has to continue at scale — that's the real question.

American Coastal Insurance posts a current ROIC of 1,448.56% and a 5-year average of 400.61%, which, like Tenet, reflects the math of a highly leveraged insurance float rather than a capital-light miracle. Still, a P/FCF of 2.45 and a Quality score of 7/9 suggest the market hasn't priced in much optimism. Florida homeowners insurance is a brutal business — but occasionally a brutal business gets cheap enough to matter.

High-Quality Software, Accelerating Returns

DocuSign is the clearest ROIC inflection story in this cohort. The 5-year average sits at just 2.83%, but the current reading has vaulted to 53.32% — a sign that a maturing SaaS model with 79.12% gross margins is now converting competitive position into actual returns. At a P/FCF of 22.32 on a $9.4B cap, the question is whether this is a permanently improved business or a temporary accounting tailwind.

CommVault Systems shows a similar trajectory — 5-year ROIC of 12.64% versus a current 22.96%, with 82.02% gross margins and a Quality score of 6/9. The P/FCF of 36.04 is the highest valuation multiple for what is fundamentally a data protection software company, so patience is required. But the margin structure suggests the economics are genuinely durable.

Box has spent years being dismissed as a slow-growth also-ran, yet its ROIC has accelerated from a 5-year average of 7.64% to a current 26.21%. At 79.08% gross margins and a P/FCF of 15.12 on a $3.4B cap, the market is valuing it like a utility rather than a compounder. That gap between operating quality and valuation is exactly where Munger would tell you to look.

Healthcare and Medical Devices

Inspire Medical Systems manufactures neurostimulation devices for sleep apnea — a niche with real pricing power, evidenced by 85.39% gross margins. Current ROIC of 31.46% is a significant acceleration from the 5-year average of 3.01%, reflecting a business that has recently crossed the profitability threshold after years of investment-mode losses. The P/FCF of 36.18 demands the growth narrative holds.

Puma Biotechnology is the most speculative name here. The 5-year ROIC of -0.28% is honest about the history, but the current 52.14% and a P/FCF of just 3.87 on a $0.3B market cap describes a company that has apparently pivoted sharply toward profitability. With 72.06% gross margins, the unit economics exist — the durability of those cash flows is the entire thesis.

Consumer Staples With Edge

Coca-Cola Consolidated is one of the quieter compounding stories in the consumer space. A current ROIC of 39.23% against a 5-year average of 31.29% shows not only high returns but improving returns — which is the real signal. Quality score of 8/9, 39.9% gross margins, and a P/FCF of 21.06 on a $15.9B cap. Buffett would understand this business in about four minutes.

Cal-Maine Foods produces eggs, and right now eggs are printing money. A current ROIC of 64.47% against a 5-year average of 29.33% reflects a commodity cycle that has been exceptionally favorable. The P/FCF of 4.10 and a Quality score of 8/9 on a $4.1B cap is notable — the market knows this will normalize, which is why it's cheap. The argument is how much capital Cal-Maine can retain before that happens.

Energy and Infrastructure

Halliburton is a case of mean reversion in the wrong direction — current ROIC of 10.67% against a 5-year average of 21.35%. The oilfield services business is cyclical by design, and 38.64% gross margins at a P/FCF of 14.01 on a $29.4B cap suggests the market is already discounting a softer cycle. This belongs on a watchlist more than a buy list at the moment.

Mexco Energy is the micro-cap outlier — $0.03B market cap, a 5-year ROIC of -2.19% improving to a current 10.31%, and a P/FCF of 4.02. There's no gross margin data available, which limits the analysis considerably. These tiny E&P names can be interesting or they can be traps; position sizing is the whole conversation.

NXT runs a consistent book — current ROIC of 67.95% nearly matches its 5-year average of 67.86%, which is the kind of stability that usually means durable competitive structure rather than a spike. At 34.09% gross margins and a P/FCF of 10.18 on a $17.5B cap, it looks reasonably priced relative to return quality.

Storage and Semiconductor Equipment

National Storage Affiliates Trust is a self-storage REIT — and a cheap one. P/FCF of 7.88 on a $2.8B cap, with a current ROIC of 20.08% accelerating from a 5-year average of 14.76%. Self-storage tends to produce remarkably stable cash flows, and NSA has historically been the lower-priced alternative to Public Storage and Extra Space. The quality score of 6/9 isn't alarming for a REIT structure.

Onto Innovation makes process control equipment for semiconductor manufacturers — a picks-and-shovels position in the chip cycle. The current ROIC of 10.64% improving from a 5-year average of 5.9% is modest acceleration, and 52.19% gross margins are solid for the equipment category. The P/FCF of 39.65 is the richest multiple on this list in absolute terms, so the semi-cycle timing matters here more than most.

These aren't all buy recommendations — they're filters that surfaced businesses with accelerating economic returns. The valuation gaps vary significantly, the risk profiles span biotech to insurance float to oilfield services. If you want to run your own version of this screen and sort by the metrics that matter most to your process, start with our screener.