ONESPAN INC (OSPN) Stock Fundamental Analysis
NASDAQ:OSPN - Nasdaq - US68287N1000 - Common Stock - Currency: USD
Taking everything into account, OSPN scores 6 out of 10 in our fundamental rating. OSPN was compared to 284 industry peers in the Software industry. OSPN has an excellent financial health rating, but there are some minor concerns on its profitability. OSPN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make OSPN a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year OSPN was profitable.
OSPN had a positive operating cash flow in the past year.
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
OSPN has a Return On Assets of 9.93%. This is amongst the best in the industry. OSPN outperforms 86.59% of its industry peers.
The Return On Equity of OSPN (14.77%) is better than 82.61% of its industry peers.
The Return On Invested Capital of OSPN (16.25%) is better than 92.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.93% | ||
| ROE | 14.77% | ||
| ROIC | 16.25% |
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
With a decent Profit Margin value of 11.73%, OSPN is doing good in the industry, outperforming 77.54% of the companies in the same industry.
OSPN's Operating Margin of 17.54% is amongst the best of the industry. OSPN outperforms 85.14% of its industry peers.
OSPN has a Gross Margin of 70.53%. This is comparable to the rest of the industry: OSPN outperforms 56.16% of its industry peers.
OSPN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.54% | ||
| PM (TTM) | 11.73% | ||
| GM | 70.53% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OSPN is creating some value.
OSPN has less shares outstanding than it did 1 year ago.
OSPN has less shares outstanding than it did 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 6.60. This indicates that OSPN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of OSPN (6.60) is better than 72.83% 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 | 6.6 |
ROIC/WACC1.16
WACC13.99%
2.3 Liquidity
A Current Ratio of 1.76 indicates that OSPN should not have too much problems paying its short term obligations.
OSPN's Current ratio of 1.76 is in line compared to the rest of the industry. OSPN outperforms 52.17% of its industry peers.
OSPN has a Quick Ratio of 1.60. 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 (1.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 940.00% over the past year.
OSPN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -47.88% yearly.
Looking at the last year, OSPN shows a small growth in Revenue. The Revenue has grown by 7.05% in the last year.
Measured over the past years, OSPN shows a small growth in Revenue. The Revenue has been growing by 2.16% on average per year.
EPS 1Y (TTM)940%
EPS 3Y-60.31%
EPS 5Y-47.88%
EPS Q2Q%266.67%
Revenue 1Y (TTM)7.05%
Revenue growth 3Y2.91%
Revenue growth 5Y2.16%
Sales Q2Q%-4.41%
3.2 Future
Based on estimates for the next years, OSPN will show a very strong growth in Earnings Per Share. The EPS will grow by 419.56% on average per year.
The Revenue is expected to grow by 5.08% on average over the next years.
EPS Next Y13330.03%
EPS Next 2Y1085.35%
EPS Next 3Y419.56%
EPS Next 5YN/A
Revenue Next Year4.31%
Revenue Next 2Y3.87%
Revenue Next 3Y5.08%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 13.63 indicates a correct valuation of OSPN.
87.32% of the companies in the same industry are more expensive than OSPN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. OSPN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.23 indicates a correct valuation of OSPN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OSPN indicates a rather cheap valuation: OSPN is cheaper than 89.86% of the companies listed in the same industry.
OSPN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
OSPN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OSPN is cheaper than 92.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OSPN is valued cheaply inside the industry as 86.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.36 | ||
| EV/EBITDA | 12.06 |
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.
A more expensive valuation may be justified as OSPN's earnings are expected to grow with 419.56% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y1085.35%
EPS Next 3Y419.56%
5. Dividend
5.1 Amount
OSPN has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 12.83, OSPN pays a better dividend. On top of this OSPN pays more dividend than 96.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, OSPN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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 2Y1085.35%
EPS Next 3Y419.56%
17.18
-1.05 (-5.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.72%
Inst Owner Change6.3%
Ins Owners1.27%
Ins Owner Change2.75%
Market Cap652.67M
Analysts80
Price Target20.4 (18.74%)
Short Float %3.31%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend0
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)79.23%
Min EPS beat(2)70.28%
Max EPS beat(2)88.19%
EPS beat(4)4
Avg EPS beat(4)195.55%
Min EPS beat(4)70.28%
Max EPS beat(4)473.15%
EPS beat(8)6
Avg EPS beat(8)117.41%
EPS beat(12)8
Avg EPS beat(12)78.85%
EPS beat(16)11
Avg EPS beat(16)69.42%
Revenue beat(2)2
Avg Revenue beat(2)4.12%
Min Revenue beat(2)0.75%
Max Revenue beat(2)7.49%
Revenue beat(4)4
Avg Revenue beat(4)6.71%
Min Revenue beat(4)0.75%
Max Revenue beat(4)12.71%
Revenue beat(8)7
Avg Revenue beat(8)4.45%
Revenue beat(12)10
Avg Revenue beat(12)3.88%
Revenue beat(16)12
Avg Revenue beat(16)4.25%
PT rev (1m)0%
PT rev (3m)33.33%
EPS NQ rev (1m)3.03%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 12.23 | ||
| P/S | 2.66 | ||
| P/FCF | 18.36 | ||
| P/OCF | 14.08 | ||
| P/B | 3.35 | ||
| P/tB | 7.22 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)1.26
EY7.33%
EPS(NY)1.41
Fwd EY8.18%
FCF(TTM)0.94
FCFY5.45%
OCF(TTM)1.22
OCFY7.1%
SpS6.45
BVpS5.12
TBVpS2.38
PEG (NY)0
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.93% | ||
| ROE | 14.77% | ||
| ROCE | 20.57% | ||
| ROIC | 16.25% | ||
| ROICexc | 25.84% | ||
| ROICexgc | 125.21% | ||
| OM | 17.54% | ||
| PM (TTM) | 11.73% | ||
| GM | 70.53% | ||
| FCFM | 14.51% |
ROA(3y)-7.85%
ROA(5y)-4.59%
ROE(3y)-13.24%
ROE(5y)-7.77%
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 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 134.23% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.87% | ||
| Profit Quality | 123.71% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 6.6 |
F-Score8
WACC13.99%
ROIC/WACC1.16
Cap/Depr(3y)96.35%
Cap/Depr(5y)75.88%
Cap/Sales(3y)2.88%
Cap/Sales(5y)2.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)940%
EPS 3Y-60.31%
EPS 5Y-47.88%
EPS Q2Q%266.67%
EPS Next Y13330.03%
EPS Next 2Y1085.35%
EPS Next 3Y419.56%
EPS Next 5YN/A
Revenue 1Y (TTM)7.05%
Revenue growth 3Y2.91%
Revenue growth 5Y2.16%
Sales Q2Q%-4.41%
Revenue Next Year4.31%
Revenue Next 2Y3.87%
Revenue Next 3Y5.08%
Revenue Next 5YN/A
EBIT growth 1Y313.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year5515.8%
EBIT Next 3Y304.67%
EBIT Next 5YN/A
FCF growth 1Y333.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y486.22%
OCF growth 3YN/A
OCF growth 5YN/A