OneSpan: An Oversold Digital Verification Company Begging to Be Bought

NASDAQ: OSPN | OneSpan Inc. News, Ratings, and Charts

OSPN – Leading digital identification and e-signature company OneSpan’s (OSPN) shares are currently trading 55.9% below its 52-week high of $12.03. However, given its solid growth attributes, we think it could be wise to take advantage of the dip and scoop up OSPN’s shares. Read on.

OneSpan Inc. (OSPN - Get Rating) and its subsidiaries create, develop, and sell digital solutions globally for identification, security, and business productivity. While its shares are down 52.1% over the past year, the company expects its full-year 2022 sales to meet or surpass the prior-year sales. OSPN intends to enhance its investments in the second half of 2022 to help accelerate revenue growth starting in 2023. Adjusted EBITDA is estimated to be in the $5 million to $7 million range for the full year 2022 and anticipates ARR growth of 16% to 18% for fiscal 2022.

In terms of forward EV/Sales, the stock is currently trading at 1.73x, 38.2% lower than the industry average of 2.80x. Also, its forward Price/Sales of 2.23x is 19.4% lower than the industry average of 2.77x. Moreover, OSPN’s trailing-12-months Price/Book of 2.15x is 31.6% lower than the industry average of 3.15x.

Currently, the stock looks extremely oversold, however, given its robust growth prospects and various strategic initiatives to boost its operational efficiencies, OSPN could witness solid momentum in the near term.

Here’s what could shape OSPN’s performance in the near term:

Strategic Collaborations

In February, OSPN and Smart Communications, a leading technology company focused on assisting businesses in engaging in more meaningful customer conversations, announced a partnership integrating OneSpan’s e-signature product, OneSpan Sign, into the Smart Communications platform to extend the value of the total customer experience. This integration enhances the client experience while also increasing operational efficiency. Joint customers get improved customer satisfaction and increased application completions, reducing time to revenue while showing compliance by simplifying digital agreement procedures.

Click here to checkout our Cybersecurity Industry Report for 2022

Robust Financials

During the first quarter ended March 31, 2022, OSPN’s total revenue increased 3.3% year-over-year to $52.45 million. Its operating expenses declined 5.5% from the year-ago value to $15.77 million. Its operating loss narrowed slightly year-over-year to $9.24 million. The company’s net income came in at $5.21 million compared to a net loss of $9.15 million in the prior-year quarter. Its EPS amounted to $0.13.

Impressive Growth Prospects

Street expects OSPN’s revenues and EPS to rise 6.8% and 110% year-over-year to $230.3 million and $0.01, respectively, in fiscal 2023. In addition, OSPN’s EPS is expected to rise at a 2% CAGR over the next five years. Moreover, the company has an impressive earnings surprise history, as it topped Street EPS estimates in three of the trailing four quarters.

POWR Ratings Reflect Solid Prospects

OSPN has an overall grade of B, equating to a Buy rating in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. OSPN has a B grade for Quality and Value. OSPN’s solid earnings and revenue growth potential is consistent with the Quality grade. In addition, the company’s lower-than-industry multiples are in sync with the Value grade.

Of the 30 stocks in the F-rated Software – Security industry, OSPN is ranked #1.

Beyond what I stated above, we have graded OSPN for Sentiment, Stability, Growth, and Momentum. Get all OSPN ratings here.

Bottom Line

OSPN has exhibited robust financial performance in the last reported quarter and is on track to deliver solid growth in the coming months based on its strategic collaborations. In addition, given that the stock is currently trading under the oversold territory, it may be an opportune time for investors to scoop up its shares and cash in on its favorable growth attributes.

How Does OneSpan Inc. (OSPN) Stack Up Against its Peers?

OSPN has an overall POWR Rating of B, which equates to a Buy rating. This rating is superior to its peers within the same industry, such as NortonLifeLock Inc. (NLOK - Get Rating), Fortinet Inc. (FTNT - Get Rating), and Proofpoint Inc. (PFPT - Get Rating), which all are rated C (neutral).

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


OSPN shares were unchanged in premarket trading Monday. Year-to-date, OSPN has declined -28.94%, versus a -17.04% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
OSPNGet RatingGet RatingGet Rating
NLOKGet RatingGet RatingGet Rating
FTNTGet RatingGet RatingGet Rating
PFPTGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Investor Alert: Mission Accomplished?

The S&P 500 (SPY) has broken out above the 200 day moving average. Does that mean that bear market fears are now over? And should investors be riding the bull to new heights? Read on for Steve Reitmeister’s answer...

Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Read More Stories

More OneSpan Inc. (OSPN) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All OSPN News