OneSpan (OSPN) AI Stock Analysis

• Market Cap: $601.75M
• Dividend Yield: 3.05%
• Average Volume (3M): 396.44K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.35
• Revenue Growth: -0.26%
• EPS Growth: N/A
• Country: US
• Employees: 465
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Infrastructure
• EPS (TTM): 0.45
• Shares Outstanding: 38,230,470
• 10 Day Avg. Volume: 344,647
• 30 Day Avg. Volume: 396,445
• PEG Ratio: 0.58
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -41.55
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.08
• Enterprise Value/Ebitda: 1.83
• 1Y Price Target: $19.33
• Price Target Upside: 25.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $17.00 ▲(10.17%Upside)

OneSpan's overall stock score reflects a company with strong financial fundamentals, attractive valuation, and effective cash flow management. While there are notable achievements in profitability and digital agreements growth, the stock faces challenges from declining revenues and technical indicators suggesting mixed momentum. The low P/E ratio and dividend yield enhance its appeal, making it a potentially undervalued investment.

OneSpan Business Overview & Revenue Model

Company Description

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide. The company offers OneSpan Sign, a range of e-signature requirements for occasional agreement to processing tens of thousands of transactions; OneSpan Cloud Authentication, a cloud-based multifactor authentication solution that supports a range of authentication options, including biometrics, push notification, and visual cryptograms for transaction data signing, SMS, and hardware authenticators; and OneSpan Identity Verification, which enables banks and financial institutions identity verification services. It also provides Mobile Security Suite, a software development kit; Mobile Authenticator Studio, a mobile authenticator that operates as a discrete mobile application; and authentication servers, which enables customers to administer a high level of access control. In addition, it offers Trusted Identity Platform, a cloud platform that simplify and secure user journeys; Intelligent Adaptive Authentication; and Risk Analytics, a comprehensive anti-fraud solution. It sells its solutions through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in May 2018. OneSpan Inc. was founded in 1991 and is headquartered in Chicago, Illinois. OneSpan Inc. was a former subsidiary of Guidewire Software, Inc.

How the Company Makes Money

OneSpan makes money through a combination of product sales, software licenses, and subscription-based services. Its revenue model is centered around providing digital security solutions to financial institutions, government agencies, and enterprises. The company generates significant income from its flagship product, the OneSpan Trusted Identity (TID) platform, which offers cloud-based services for secure customer onboarding and transaction authentication. Additionally, OneSpan partners with major banks and financial institutions to integrate its security solutions into their existing systems, further expanding its market reach and revenue potential.

OneSpan Financial Statement Overview

Summary

OneSpan demonstrates strong financial performance with high profitability and solid cash flow management. The income statement shows a healthy net profit margin and efficient cost management. The balance sheet reflects financial stability with low leverage, although there are concerns over declining asset growth. Cash flow is robust, with high conversion of profits into cash.

Income Statement

OneSpan's income statement reflects a positive trajectory with increasing revenues and profitability. The TTM Gross Profit Margin is approximately 71.88%, indicating efficient cost management. The Net Profit Margin at 24.05% shows strong profitability. However, a slight decline in revenue growth rate by 0.61% from the previous year indicates a need for caution. The EBIT and EBITDA margins are healthy at 20.52% and 23.31%, respectively, demonstrating operational efficiency.

Balance Sheet

OneSpan maintains a solid financial position with a low Debt-to-Equity ratio of 0.03 and a high Equity Ratio of 69.23%, indicating financial stability and low leverage. The Return on Equity is commendable at 25.15%, reflecting efficient use of equity to generate profits. However, the decrease in total assets and equity over the years may suggest potential challenges in asset growth.

Cash Flow

The cash flow statement shows robust cash generation capabilities with a strong Free Cash Flow to Net Income Ratio of 0.86 in TTM, indicating effective conversion of profits into cash. The Operating Cash Flow to Net Income Ratio is slightly above 1, suggesting good quality of earnings. The Free Cash Flow Growth Rate of 8.18% over the past year signals effective cash flow management despite minor fluctuations in capital expenditure.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
241.70M	243.18M	235.11M	219.01M	214.48M	215.69M
	Gross Profit
173.69M	174.58M	157.72M	148.57M	142.94M	152.25M
	EBIT
49.59M	44.80M	-28.87M	-495.00K	-26.13M	-5.26M
	EBITDA
56.31M	54.85M	-5.08M	-6.74M	-17.20M	6.75M
	Net Income Common Stockholders
58.12M	57.08M	-29.80M	-14.43M	-30.58M	-5.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
105.21M	83.16M	42.49M	98.83M	98.49M	115.25M
	Total Assets
333.81M	338.73M	289.19M	335.08M	342.27M	375.20M
	Total Debt
6.91M	6.93M	6.82M	8.44M	10.18M	12.40M
	Net Debt
-98.30M	-76.23M	-35.67M	-88.06M	-53.20M	-76.00M
	Total Liabilities
102.69M	126.20M	130.05M	131.77M	122.49M	117.86M
	Stockholders Equity
231.12M	212.53M	159.14M	203.31M	219.78M	257.34M
Cash Flow		Free Cash Flow
50.22M	46.42M	-23.28M	-10.81M	-4.95M	11.82M
	Operating Cash Flow
58.07M	55.67M	-10.73M	-5.79M	-2.75M	14.92M
	Investing Cash Flow
-7.87M	-9.30M	-12.01M	46.59M	-10.98M	-4.66M
	Financing Cash Flow
-9.36M	-5.24M	-32.09M	-7.31M	-10.39M	-7.06M

OneSpan Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSPN, the sentiment is Negative. The current price of 15.43 is below the 20-day moving average (MA) of 16.04, below the 50-day MA of 15.46, and below the 200-day MA of 16.51, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 16.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OSPN.

OneSpan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GCT	72 Outperform	$621.15M	5.86	34.42%	―	42.89%	18.97%
YEXT	71 Outperform	$1.03B	―	-15.69%	―	8.38%	-278.88%
OSPN	69 Neutral	$601.75M	10.70	28.92%	3.05%	-0.26%	―
PRTH	66 Neutral	$625.27M	―	57.39%	―	15.76%	82.78%
Sector *	62 Neutral	$11.92B	10.03	-7.37%	3.70%	7.32%	-8.25%
RPAY	53 Neutral	$433.80M	―	-1.64%	―	2.26%	85.37%
CGNT	51 Neutral	$659.12M	―	-4.06%	―	―	―

OneSpan Corporate Events

OneSpan Stockholders Approve Key Proposals at Annual Meeting

On June 6, 2025, OneSpan held its annual meeting of stockholders where several key proposals were voted on. The election of seven directors was confirmed, with all nominees successfully elected to serve until the 2026 meeting. Additionally, stockholders approved the executive officer compensation, an amendment to the 2019 Omnibus Incentive Plan to increase available shares by 1,500,000, and the ratification of KPMG LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (OSPN) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on OneSpan stock, see the OSPN Stock Forecast page.