ONESPAN INC (OSPN) Stock Fundamental Analysis
NASDAQ:OSPN - Nasdaq - US68287N1000 - Common Stock - Currency: USD
Overall OSPN gets a fundamental rating of 6 out of 10. We evaluated OSPN against 282 industry peers in the Software industry. OSPN gets an excellent profitability rating and is at the same time showing great financial health properties. OSPN is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make OSPN suitable for value investing!
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 an excellent Return On Assets value of 17.41%, OSPN belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
The Return On Equity of OSPN (25.15%) is better than 89.01% of its industry peers.
OSPN has a Return On Invested Capital of 16.41%. This is amongst the best in the industry. OSPN outperforms 92.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.41% | ||
| ROE | 25.15% | ||
| ROIC | 16.41% |
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 24.05%, OSPN belongs to the best of the industry, outperforming 92.20% of the companies in the same industry.
OSPN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.20%, OSPN belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
In the last couple of years the Operating Margin of OSPN has grown nicely.
OSPN has a Gross Margin (72.10%) which is in line with its industry peers.
OSPN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.2% | ||
| PM (TTM) | 24.05% | ||
| GM | 72.1% |
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
OSPN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, OSPN has more shares outstanding
Compared to 5 years ago, OSPN has less shares outstanding
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
OSPN has an Altman-Z score of 6.15. This indicates that OSPN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.15, OSPN is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
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 | 6.15 |
ROIC/WACC1.5
WACC10.94%
2.3 Liquidity
A Current Ratio of 1.96 indicates that OSPN should not have too much problems paying its short term obligations.
OSPN has a Current ratio of 1.96. This is in the better half of the industry: OSPN outperforms 61.35% of its industry peers.
OSPN has a Quick Ratio of 1.83. 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 Quick ratio (1.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 150.94% over the past year.
The Earnings Per Share has been growing by 19.39% on average over the past years. This is quite good.
OSPN shows a decrease in Revenue. In the last year, the revenue decreased by -0.26%.
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)150.94%
EPS 3YN/A
EPS 5Y19.39%
EPS Q2Q%4.65%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y4.27%
Revenue growth 5Y-0.83%
Sales Q2Q%-2.28%
3.2 Future
The Earnings Per Share is expected to grow by 4.37% on average over the next years.
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
The Price/Earnings ratio is 11.86, which indicates a very decent valuation of OSPN.
Compared to the rest of the industry, the Price/Earnings ratio of OSPN indicates a rather cheap valuation: OSPN is cheaper than 89.36% of the companies listed in the same industry.
OSPN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 10.71, the valuation of OSPN can be described as reasonable.
OSPN's Price/Forward Earnings ratio is rather cheap when compared to the industry. OSPN is cheaper than 91.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. OSPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OSPN indicates a rather cheap valuation: OSPN is cheaper than 92.55% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OSPN indicates a rather cheap valuation: OSPN is cheaper than 91.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 9.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of OSPN may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)0.61
EPS Next 2Y6.01%
EPS Next 3Y4.37%
5. Dividend
5.1 Amount
OSPN has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 33.31, OSPN pays a better dividend. On top of this OSPN pays more dividend than 97.52% of the companies listed in the same industry.
OSPN's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
OSPN does not have a reliable dividend history as it only pays dividend since a couple or years.
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%
15.77
-1.78 (-10.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.04%
Inst Owner Change0%
Ins Owners1.33%
Ins Owner Change2.62%
Market Cap602.89M
Analysts80
Price Target19.72 (25.05%)
Short Float %4.12%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.8%
Min EPS beat(2)-7.73%
Max EPS beat(2)35.33%
EPS beat(4)3
Avg EPS beat(4)46.52%
Min EPS beat(4)-7.73%
Max EPS beat(4)88.19%
EPS beat(8)6
Avg EPS beat(8)112.76%
EPS beat(12)8
Avg EPS beat(12)90.5%
EPS beat(16)11
Avg EPS beat(16)69.01%
Revenue beat(2)1
Avg Revenue beat(2)1.03%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)2.75%
Revenue beat(4)3
Avg Revenue beat(4)2.58%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)7.49%
Revenue beat(8)6
Avg Revenue beat(8)3.62%
Revenue beat(12)10
Avg Revenue beat(12)3.77%
Revenue beat(16)11
Avg Revenue beat(16)2.9%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.49%
EPS NY rev (1m)0%
EPS NY rev (3m)5.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 10.71 | ||
| P/S | 2.49 | ||
| P/FCF | 12.01 | ||
| P/OCF | 10.38 | ||
| P/B | 2.61 | ||
| P/tB | 4.64 | ||
| EV/EBITDA | 9.48 |
EPS(TTM)1.33
EY8.43%
EPS(NY)1.47
Fwd EY9.33%
FCF(TTM)1.31
FCFY8.33%
OCF(TTM)1.52
OCFY9.63%
SpS6.32
BVpS6.05
TBVpS3.4
PEG (NY)1.03
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.41% | ||
| ROE | 25.15% | ||
| ROCE | 20.77% | ||
| ROIC | 16.41% | ||
| ROICexc | 28.6% | ||
| ROICexgc | 100.11% | ||
| OM | 21.2% | ||
| PM (TTM) | 24.05% | ||
| GM | 72.1% | ||
| FCFM | 20.77% |
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-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 93.57% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.35% | ||
| Profit Quality | 86.38% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 6.15 |
F-Score6
WACC10.94%
ROIC/WACC1.5
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)150.94%
EPS 3YN/A
EPS 5Y19.39%
EPS Q2Q%4.65%
EPS Next Y11.48%
EPS Next 2Y6.01%
EPS Next 3Y4.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y4.27%
Revenue growth 5Y-0.83%
Sales Q2Q%-2.28%
Revenue Next Year3.38%
Revenue Next 2Y4.23%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
EBIT growth 1Y346.42%
EBIT growth 3YN/A
EBIT growth 5Y28.24%
EBIT Next Year27.68%
EBIT Next 3Y11.32%
EBIT Next 5YN/A
FCF growth 1Y1342.65%
FCF growth 3YN/A
FCF growth 5Y33.85%
OCF growth 1Y1432.27%
OCF growth 3YN/A
OCF growth 5Y25%