DB:VDY

Stock Analysis Report

Executive Summary

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide.

Rewards

Trading at 71.9% below its fair value

Earnings are forecast to grow 47.92% per year

Became profitable this year

Risk Analysis

No risks detected for VDY from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has OneSpan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VDY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.0%

VDY

2.8%

DE Software

0.5%

DE Market


1 Year Return

41.9%

VDY

39.0%

DE Software

15.5%

DE Market

Return vs Industry: VDY exceeded the German Software industry which returned 39.3% over the past year.

Return vs Market: VDY exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

VDYIndustryMarket
7 Day-4.0%2.8%0.5%
30 Day4.9%5.2%1.4%
90 Day21.4%8.1%5.3%
1 Year41.9%41.9%40.8%39.0%19.2%15.5%
3 Year20.4%20.4%60.9%54.5%15.7%5.5%
5 Year-11.1%-11.1%146.6%129.0%27.3%10.1%

Price Volatility Vs. Market

How volatile is OneSpan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is OneSpan undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VDY (€16.8) is trading below our estimate of fair value (€59.83)

Significantly Below Fair Value: VDY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VDY is poor value based on its PE Ratio (98x) compared to the Software industry average (41.3x).

PE vs Market: VDY is poor value based on its PE Ratio (98x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: VDY is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: VDY is good value based on its PB Ratio (3.2x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

How is OneSpan forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

47.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VDY's forecast earnings growth (47.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: VDY's earnings (47.9% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VDY's revenue (7.7% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: VDY's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VDY's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has OneSpan performed over the past 5 years?

-56.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VDY has high quality earnings.

Growing Profit Margin: VDY became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VDY's earnings have declined by -56.6% per year over the past 5 years.

Accelerating Growth: VDY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VDY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (14.6%).


Return on Equity

High ROE: VDY's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OneSpan's financial position?


Financial Position Analysis

Short Term Liabilities: VDY's short term assets ($197.9M) exceed its short term liabilities ($71.4M).

Long Term Liabilities: VDY's short term assets ($197.9M) exceed its long term liabilities ($39.8M).


Debt to Equity History and Analysis

Debt Level: VDY is debt free.

Reducing Debt: VDY has not had any debt for past 5 years.

Debt Coverage: VDY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VDY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: VDY has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if VDY's debt is covered by short term assets.


Next Steps

Dividend

What is OneSpan's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VDY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VDY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VDY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VDY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VDY's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of OneSpan's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Scott Clements (56yo)

2.5yrs

Tenure

US$2,427,711

Compensation

Mr. Scott M. Clements has been the President and Chief Executive Officer of OneSpan Inc. (Former Name: VASCO Data Security International Inc.)since November 15, 2016 and July 28, 2017 respectively. Mr. Cle ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD2.43M) is above average for companies of similar size in the German market ($USD1.28M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

57yo

Average Age

Experienced Management: VDY's management team is considered experienced (3 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

60yo

Average Age

Experienced Board: VDY's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: VDY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€4,004,62817 Jan 20
Thomas Hunt
EntityIndividual
Role
Member of the Board of Directors
Founder & Director
Shares219,973
Max Price€18.27
Sell€6,252,78704 Nov 19
Thomas Hunt
EntityIndividual
Role
Member of the Board of Directors
Founder & Director
Shares365,000
Max Price€17.22
Buy€129,05614 Jun 19
Marc Zenner
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max Price€13.39
Sell€821,20512 Jun 19
Thomas Hunt
EntityIndividual
Role
Member of the Board of Directors
Founder & Director
Shares66,000
Max Price€12.44
Sell€430,70211 Jun 19
Thomas Hunt
EntityIndividual
Role
Member of the Board of Directors
Founder & Director
Shares34,000
Max Price€12.67
Buy€45,12030 May 19
Scott Clements
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,550
Max Price€12.71
Buy€88,93523 May 19
Scott Clements
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares6,840
Max Price€13.26

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ken Hunt (75yo)

    Founder & Director

    • Tenure: 22.5yrs
    • Compensation: US$450.00k
  • John Gunn (58yo)

    Chief Marketing Officer

    • Tenure: 3yrs
  • Mark Hoyt (51yo)

    CFO, Executive VP & Treasurer

    • Tenure: 4.3yrs
    • Compensation: US$1.32m
  • Steve Worth

    Chief Compliance Officer

    • Tenure: 3yrs
  • Scott Clements (56yo)

    CEO, President & Director

    • Tenure: 2.5yrs
    • Compensation: US$2.43m
  • Benoit Grange

    Chief Technology Officer

    • Tenure: 3yrs
  • Jeff Cole

    Chief Information Officer

    • Tenure: 2.8yrs
  • Joe Maxa

    Director of Investor Relations

    • Dan Dica

      Senior Vice President of Worldwide Sales

      • Giovanni Verhaeghe

        Vice President of Corporate Development & Hardware Operations

        • Tenure: 2yrs

      Board Members

      • Jean Holley (60yo)

        Independent Director

        • Tenure: 13.4yrs
        • Compensation: US$174.50k
      • Matt Moog (49yo)

        Independent Director

        • Tenure: 7.1yrs
        • Compensation: US$170.00k
      • Ken Hunt (75yo)

        Founder & Director

        • Tenure: 22.5yrs
        • Compensation: US$450.00k
      • Michael Cullinane (69yo)

        Independent Director

        • Tenure: 21.8yrs
        • Compensation: US$178.50k
      • Marc Boroditsky

        Director

        • Tenure: 0.6yrs
      • John Fox (76yo)

        Independent Chairman of the Board

        • Compensation: US$177.00k
      • Scott Clements (56yo)

        CEO, President & Director

        • Tenure: 2.5yrs
        • Compensation: US$2.43m
      • Marc Zenner (56yo)

        Director

        • Tenure: 0.6yrs

      Company Information

      OneSpan Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: OneSpan Inc.
      • Ticker: VDY
      • Exchange: DB
      • Founded: 1991
      • Industry: Systems Software
      • Sector: Software
      • Market Cap: US$758.048m
      • Listing Market Cap: US$683.684m
      • Shares outstanding: 39.96m
      • Website: https://www.onespan.com

      Number of Employees


      Location

      • OneSpan Inc.
      • 121 West Wacker Drive
      • Suite 2050
      • Chicago
      • Illinois
      • 60601
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      OSPNNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 1998
      VDYDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1998
      0YNULSE (London Stock Exchange)YesCommon StockGBUSDMar 1998

      Biography

      OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide. The company offers DIGIPASS hardware authenticators that supports authentication and digital signatures for applications running on desktop PCs, laptops, tablets, and smart phones; Mobile Security Suite, a software development kit; Mobile Authenticator Studio, a mobile authenticator that operates as a discrete mobile application; and authentication server that enables customers to administer a high level of access control. It also provides OneSpan Sign, which supports a range of eSignature requirements from simple to complex; Trusted Identity Platform, an open architected, cloud-based platform; Intelligent Adaptive Authentication, a cloud-based solution that enables banks and other financial institutions to secure users, devices, and transactions; and Risk Analytics, a comprehensive anti-fraud solution; and Verification Hub, a cloud-based digital identity verification solution that provides access to multiple third-party verification services. The company 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. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/22 20:56
      End of Day Share Price2020/01/22 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.