ONESPAN INC (OSPN) Stock Fundamental Analysis
NASDAQ:OSPN - US68287N1000 - Common Stock
14.56 USD
+0.57 (+4.07%)
14.56 USD
0 (0%)
Overall OSPN gets a fundamental rating of 6 out of 10. We evaluated OSPN against 283 industry peers in the Software industry. OSPN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. OSPN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, OSPN could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
OSPN had positive earnings in the past year.
In the past year OSPN had a positive cash flow from operations.
In the past 5 years OSPN reported 4 times negative net income.
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 an excellent Return On Assets value of 16.78%, OSPN belongs to the best of the industry, outperforming 93.29% of the companies in the same industry.
The Return On Equity of OSPN (24.70%) is better than 89.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.84%, OSPN belongs to the top of the industry, outperforming 92.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.78% | ||
| ROE | 24.7% | ||
| ROIC | 15.84% |
ROA(3y)0.75%
ROA(5y)-1.63%
ROE(3y)0.35%
ROE(5y)-3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 24.90%, OSPN belongs to the best of the industry, outperforming 90.11% of the companies in the same industry.
In the last couple of years the Profit Margin of OSPN has grown nicely.
OSPN has a Operating Margin of 21.80%. This is amongst the best in the industry. OSPN outperforms 88.34% of its industry peers.
OSPN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 73.93%, OSPN is doing good in the industry, outperforming 62.19% of the companies in the same industry.
OSPN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.8% | ||
| PM (TTM) | 24.9% | ||
| GM | 73.93% |
OM growth 3YN/A
OM growth 5Y29.31%
PM growth 3YN/A
PM growth 5Y49.76%
GM growth 3Y2.52%
GM growth 5Y1.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OSPN is still creating some value.
Compared to 1 year ago, OSPN has more shares outstanding
OSPN has less shares outstanding than it did 5 years ago.
OSPN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.87 indicates that OSPN is not in any danger for bankruptcy at the moment.
OSPN's Altman-Z score of 4.87 is fine compared to the rest of the industry. OSPN outperforms 70.67% 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 | 0 | ||
| Altman-Z | 4.87 |
ROIC/WACC1.4
WACC11.28%
2.3 Liquidity
OSPN has a Current Ratio of 1.77. This is a normal value and indicates that OSPN is financially healthy and should not expect problems in meeting its short term obligations.
OSPN has a Current ratio of 1.77. This is comparable to the rest of the industry: OSPN outperforms 55.48% of its industry peers.
OSPN has a Quick Ratio of 1.65. This is a normal value and indicates that OSPN is financially healthy and should not expect problems in meeting its short term obligations.
OSPN's Quick ratio of 1.65 is in line compared to the rest of the industry. OSPN outperforms 51.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.33% over the past year.
OSPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.39% yearly.
The Revenue has decreased by -2.79% in the past year.
Measured over the past years, OSPN shows a decrease in Revenue. The Revenue has been decreasing by -0.83% on average per year.
EPS 1Y (TTM)33.33%
EPS 3YN/A
EPS 5Y19.39%
EPS Q2Q%9.68%
Revenue 1Y (TTM)-2.79%
Revenue growth 3Y4.27%
Revenue growth 5Y-0.83%
Sales Q2Q%-1.77%
3.2 Future
OSPN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.37% yearly.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y11.48%
EPS Next 2Y6.01%
EPS Next 3Y4.37%
EPS Next 5YN/A
Revenue Next Year3.38%
Revenue Next 2Y4.23%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 10.71 indicates a reasonable valuation of OSPN.
Based on the Price/Earnings ratio, OSPN is valued cheaply inside the industry as 88.69% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.24. OSPN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.89, the valuation of OSPN can be described as reasonable.
Based on the Price/Forward Earnings ratio, OSPN is valued cheaply inside the industry as 92.58% of the companies are valued more expensively.
OSPN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
OSPN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OSPN is cheaper than 92.93% of the companies in the same industry.
OSPN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OSPN is cheaper than 94.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
OSPN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OSPN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.93
PEG (5Y)0.55
EPS Next 2Y6.01%
EPS Next 3Y4.37%
5. Dividend
5.1 Amount
OSPN has a Yearly Dividend Yield of 3.43%.
OSPN's Dividend Yield is rather good when compared to the industry average which is at 48.84. OSPN pays more dividend than 98.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, OSPN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
OSPN is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y6.01%
EPS Next 3Y4.37%
14.56
+0.57 (+4.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.06%
Inst Owner Change0.22%
Ins Owners1.34%
Ins Owner Change2.14%
Market Cap557.94M
Analysts80
Price Target18.7 (28.43%)
Short Float %4.55%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.6%
Min EPS beat(2)13.86%
Max EPS beat(2)35.33%
EPS beat(4)3
Avg EPS beat(4)27.94%
Min EPS beat(4)-7.73%
Max EPS beat(4)70.28%
EPS beat(8)7
Avg EPS beat(8)143.03%
EPS beat(12)9
Avg EPS beat(12)92.39%
EPS beat(16)11
Avg EPS beat(16)69.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.64%
Revenue beat(4)2
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)2.75%
Revenue beat(8)6
Avg Revenue beat(8)3.91%
Revenue beat(12)9
Avg Revenue beat(12)3.62%
Revenue beat(16)11
Avg Revenue beat(16)2.98%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-13.88%
EPS NQ rev (3m)-17.25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.93%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 9.89 | ||
| P/S | 2.31 | ||
| P/FCF | 10.2 | ||
| P/OCF | 8.98 | ||
| P/B | 2.3 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)1.36
EY9.34%
EPS(NY)1.47
Fwd EY10.11%
FCF(TTM)1.43
FCFY9.8%
OCF(TTM)1.62
OCFY11.14%
SpS6.29
BVpS6.34
TBVpS3.36
PEG (NY)0.93
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.78% | ||
| ROE | 24.7% | ||
| ROCE | 20.06% | ||
| ROIC | 15.84% | ||
| ROICexc | 24.57% | ||
| ROICexgc | 75.75% | ||
| OM | 21.8% | ||
| PM (TTM) | 24.9% | ||
| GM | 73.93% | ||
| FCFM | 22.67% |
ROA(3y)0.75%
ROA(5y)-1.63%
ROE(3y)0.35%
ROE(5y)-3%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y39.04%
ROICexc growth 3YN/A
ROICexc growth 5Y36.55%
OM growth 3YN/A
OM growth 5Y29.31%
PM growth 3YN/A
PM growth 5Y49.76%
GM growth 3Y2.52%
GM growth 5Y1.64%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 84.43% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.2% | ||
| Profit Quality | 91.06% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 4.87 |
F-Score7
WACC11.28%
ROIC/WACC1.4
Cap/Depr(3y)125.33%
Cap/Depr(5y)85.22%
Cap/Sales(3y)3.82%
Cap/Sales(5y)2.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3YN/A
EPS 5Y19.39%
EPS Q2Q%9.68%
EPS Next Y11.48%
EPS Next 2Y6.01%
EPS Next 3Y4.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.79%
Revenue growth 3Y4.27%
Revenue growth 5Y-0.83%
Sales Q2Q%-1.77%
Revenue Next Year3.38%
Revenue Next 2Y4.23%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
EBIT growth 1Y60.22%
EBIT growth 3YN/A
EBIT growth 5Y28.24%
EBIT Next Year27.68%
EBIT Next 3Y11.32%
EBIT Next 5YN/A
FCF growth 1Y578.97%
FCF growth 3YN/A
FCF growth 5Y33.85%
OCF growth 1Y6987.56%
OCF growth 3YN/A
OCF growth 5Y25%