ONESPAN INC (OSPN)
US68287N1000 - Common Stock
We assign a fundamental rating of 5 out of 10 to OSPN. OSPN was compared to 277 industry peers in the Software industry. OSPN has a great financial health rating, but its profitability evaluates not so good. OSPN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year OSPN was profitable.
In the past year OSPN had a positive cash flow from operations.
OSPN had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: OSPN reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -2.88%, OSPN perfoms like the industry average, outperforming 58.91% of the companies in the same industry.
OSPN has a Return On Equity of -4.66%. This is in the better half of the industry: OSPN outperforms 60.73% of its industry peers.
With a decent Return On Invested Capital value of 4.90%, OSPN is doing good in the industry, outperforming 77.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.88% | ||
| ROE | -4.66% | ||
| ROIC | 4.9% |
ROA(3y)-7.85%
ROA(5y)-4.59%
ROE(3y)-13.24%
ROE(5y)-7.77%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 4.74%, OSPN is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
With a Gross Margin value of 68.42%, OSPN perfoms like the industry average, outperforming 52.36% of the companies in the same industry.
OSPN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.74% | ||
| PM (TTM) | N/A | ||
| GM | 68.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.77%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OSPN is destroying value.
Compared to 1 year ago, OSPN has less shares outstanding
The number of shares outstanding for OSPN has been reduced compared to 5 years ago.
There is no outstanding debt for OSPN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
OSPN has an Altman-Z score of 4.54. This indicates that OSPN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of OSPN (4.54) is better than 69.45% of its industry peers.
There is no outstanding debt for OSPN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.54 |
ROIC/WACC0.47
WACC10.47%
2.3 Liquidity
A Current Ratio of 1.46 indicates that OSPN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, OSPN is in line with its industry, outperforming 44.00% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that OSPN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, OSPN is not doing good in the industry: 61.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 507.69% over the past year.
The earnings per share for OSPN have been decreasing by -47.88% on average. This is quite bad
The Revenue has grown by 8.11% in the past year. This is quite good.
The Revenue has been growing slightly by 2.16% on average over the past years.
EPS 1Y (TTM)507.69%
EPS 3Y-60.31%
EPS 5Y-47.88%
EPS Q2Q%577.78%
Revenue 1Y (TTM)8.11%
Revenue growth 3Y2.91%
Revenue growth 5Y2.16%
Sales Q2Q%12.56%
3.2 Future
The Earnings Per Share is expected to grow by 1009.42% on average over the next years. This is a very strong growth
Based on estimates for the next years, OSPN will show a small growth in Revenue. The Revenue will grow by 4.91% on average per year.
EPS Next Y10895.6%
EPS Next 2Y1009.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y4.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.85, the valuation of OSPN can be described as rather expensive.
77.82% of the companies in the same industry are more expensive than OSPN, based on the Price/Earnings ratio.
OSPN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.05.
OSPN is valuated reasonably with a Price/Forward Earnings ratio of 10.70.
Based on the Price/Forward Earnings ratio, OSPN is valued cheaper than 90.91% of the companies in the same industry.
OSPN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.07.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OSPN is valued cheaper than 83.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.87 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OSPN's earnings are expected to grow with 1009.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y1009.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OSPN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ONESPAN INC
NASDAQ:OSPN (5/31/2024, 7:00:02 PM)
After market: 13.17 0 (0%)13.17
+0.17 (+1.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap498.48M
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 10.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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PEG (NY)0
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.88% | ||
| ROE | -4.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.74% | ||
| PM (TTM) | N/A | ||
| GM | 68.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)507.69%
EPS 3Y-60.31%
EPS 5Y
EPS Q2Q%
EPS Next Y10895.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.11%
Revenue growth 3Y2.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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