ONESPAN INC (OSPN) Stock Fundamental Analysis
NASDAQ:OSPN - Nasdaq - US68287N1000 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to OSPN. OSPN was compared to 285 industry peers in the Software industry. OSPN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. OSPN is valued quite cheap, while showing a decent growth score. This is a good combination! This makes OSPN very considerable 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.
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
OSPN has a Return On Assets of 16.85%. This is amongst the best in the industry. OSPN outperforms 93.29% of its industry peers.
OSPN has a better Return On Equity (26.86%) than 89.75% of its industry peers.
OSPN has a better Return On Invested Capital (17.03%) than 93.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.85% | ||
| ROE | 26.86% | ||
| ROIC | 17.03% |
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 23.47%, OSPN belongs to the best of the industry, outperforming 89.05% of the companies in the same industry.
OSPN's Profit Margin has improved in the last couple of years.
The Operating Margin of OSPN (20.25%) is better than 87.99% of its industry peers.
In the last couple of years the Operating Margin of OSPN has grown nicely.
OSPN has a Gross Margin (71.79%) which is in line with its industry peers.
In the last couple of years the Gross Margin of OSPN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.25% | ||
| PM (TTM) | 23.47% | ||
| GM | 71.79% |
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
The number of shares outstanding for OSPN has been reduced compared to 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 4.66 indicates that OSPN is not in any danger for bankruptcy at the moment.
The Altman-Z score of OSPN (4.66) is better than 71.02% of its industry peers.
OSPN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.66 |
ROIC/WACC1.56
WACC10.9%
2.3 Liquidity
A Current Ratio of 1.59 indicates that OSPN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.59, OSPN perfoms like the industry average, outperforming 48.76% of the companies in the same industry.
OSPN has a Quick Ratio of 1.49. This is a normal value and indicates that OSPN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of OSPN (1.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 13000.00% over the past year.
Measured over the past years, OSPN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.39% on average per year.
Looking at the last year, OSPN shows a small growth in Revenue. The Revenue has grown by 3.43% in the last year.
OSPN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.83% yearly.
EPS 1Y (TTM)13000%
EPS 3YN/A
EPS 5Y19.39%
EPS Q2Q%26.32%
Revenue 1Y (TTM)3.43%
Revenue growth 3Y4.27%
Revenue growth 5Y-0.83%
Sales Q2Q%-2.79%
3.2 Future
The Earnings Per Share is expected to grow by 3.82% on average over the next years.
OSPN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y5.93%
EPS Next 2Y3.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.45%
Revenue Next 2Y4.38%
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 decreasing.
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
OSPN is valuated reasonably with a Price/Earnings ratio of 10.95.
Based on the Price/Earnings ratio, OSPN is valued cheaper than 87.99% of the companies in the same industry.
When comparing the Price/Earnings ratio of OSPN to the average of the S&P500 Index (28.29), we can say OSPN is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.34, the valuation of OSPN can be described as very reasonable.
90.81% of the companies in the same industry are more expensive than OSPN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of OSPN to the average of the S&P500 Index (21.08), we can say OSPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 10.34 |
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 92.58% of the companies listed in the same industry.
OSPN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OSPN is cheaper than 92.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.82 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OSPN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of OSPN may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)0.56
EPS Next 2Y3.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.34%, OSPN has a reasonable but not impressive dividend return.
The stock price of OSPN dropped by -24.19% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
OSPN's Dividend Yield is rather good when compared to the industry average which is at 14.87. OSPN pays more dividend than 97.17% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, OSPN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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 2Y3.82%
EPS Next 3YN/A
14.35
-0.11 (-0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.72%
Inst Owner Change0%
Ins Owners1.27%
Ins Owner Change2.73%
Market Cap547.88M
Analysts80
Price Target19.72 (37.42%)
Short Float %4.52%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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)31.28%
Min EPS beat(2)-7.73%
Max EPS beat(2)70.28%
EPS beat(4)3
Avg EPS beat(4)75.32%
Min EPS beat(4)-7.73%
Max EPS beat(4)150.56%
EPS beat(8)5
Avg EPS beat(8)98.78%
EPS beat(12)8
Avg EPS beat(12)94.39%
EPS beat(16)10
Avg EPS beat(16)60.48%
Revenue beat(2)2
Avg Revenue beat(2)1.75%
Min Revenue beat(2)0.75%
Max Revenue beat(2)2.75%
Revenue beat(4)4
Avg Revenue beat(4)5.93%
Min Revenue beat(4)0.75%
Max Revenue beat(4)12.71%
Revenue beat(8)7
Avg Revenue beat(8)4.25%
Revenue beat(12)10
Avg Revenue beat(12)3.74%
Revenue beat(16)12
Avg Revenue beat(16)3.03%
PT rev (1m)0%
PT rev (3m)-3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 10.34 | ||
| P/S | 2.25 | ||
| P/FCF | 11.82 | ||
| P/OCF | 9.84 | ||
| P/B | 2.58 | ||
| P/tB | 4.86 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)1.31
EY9.13%
EPS(NY)1.39
Fwd EY9.67%
FCF(TTM)1.21
FCFY8.46%
OCF(TTM)1.46
OCFY10.16%
SpS6.37
BVpS5.57
TBVpS2.95
PEG (NY)1.85
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.85% | ||
| ROE | 26.86% | ||
| ROCE | 21.56% | ||
| ROIC | 17.03% | ||
| ROICexc | 26.78% | ||
| ROICexgc | 85.6% | ||
| OM | 20.25% | ||
| PM (TTM) | 23.47% | ||
| GM | 71.79% | ||
| FCFM | 19.06% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.25% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.62% | ||
| Profit Quality | 81.22% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 4.66 |
F-Score7
WACC10.9%
ROIC/WACC1.56
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)13000%
EPS 3YN/A
EPS 5Y19.39%
EPS Q2Q%26.32%
EPS Next Y5.93%
EPS Next 2Y3.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.43%
Revenue growth 3Y4.27%
Revenue growth 5Y-0.83%
Sales Q2Q%-2.79%
Revenue Next Year3.45%
Revenue Next 2Y4.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y526.47%
EBIT growth 3YN/A
EBIT growth 5Y28.24%
EBIT Next Year27.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y299.17%
FCF growth 3YN/A
FCF growth 5Y33.85%
OCF growth 1Y618.56%
OCF growth 3YN/A
OCF growth 5Y25%