OneSpan Inc. (OSPN) stock analysis

P/E above its 5-year median

OneSpan's P/E of 12.3 is above its own 5-year median of 10.1.

P/E below the industry

OneSpan's P/E of 12.3 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA above its 5-year median

OneSpan's EV/EBITDA of 13.2 is above its 5-year median of 8.9.

P/B below the industry

OneSpan's price-to-book of 2.91 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $22.18 is below our fair value estimate of $28.83.

Margin of safety over 20%

The price is 23.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 4.9% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance lowered

OneSpan lowered its Full Year 2026 Hardware revenue outlook on Aug 4, 2026.

Gross margin improving

Gross margin was 74.3% over the last twelve months, against 73.9% a year earlier.

Return on equity under 15%

Return on equity was 26.8% over the last twelve months and averaged 4.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 23.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

OneSpan's return on equity of 26.8% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 27.5% over the last twelve months, against a 5-year average of 4.0%.

Net margin above the industry

OneSpan's net margin of 27.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

No debt

OneSpan has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.35 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.04; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

OneSpan paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; OneSpan yields 2.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 27.6% of net income.

Covered by free cash flow

Dividends take 43.1% of free cash flow.