As Sentiment Softens, OneSpan's Cash Flow And Dividends Stand Out

Jason Ditz1.47K FollowersFollow5ShareSavePlay(10min)CommentsSummaryOneSpan is transitioning from hardware to software-centric authentication, driving improved margins and a more resilient earnings profile.OSPN trades at a compelling forward P/E of 7.99 and offers a 4.26% dividend yield, both well below sector medians, supporting a value-oriented buy rating.Strong free cash flow enables consistent dividends, share buybacks, and strategic acquisitions to bolster subscription revenue growth.Recent acquisitions, including Nok Nok and Build38, position OSPN for renewed growth in digital authentication and mobile security markets. economica20/iStock via Getty Images Market sentiment seems to be shifting dramatically in technology, particularly as it relates to Internet software and services companies. While the megacap leviathans are forever testing record highs, those following the 52-week lows are finding familiar names appearing. TheThis article was written byJason Ditz1.47K FollowersFollowI’m Jason Ditz and I have 20 years of experience in foreign policy research. My work has appeared in Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times and the Detroit Free Press, as well as American Conservative Magazine and the Quincy Institute for Responsible Statecraft. I have been writing investment analysis, with a focus on deep-discount value plays, for over 25 years. I I got my start analyzing securities for a stock-picking contest on the now defunct StockJungle in college. After winning one of the top prizes for quarterly performance, I was hired to write a monthly article about micro-cap stocks, again with a value perspective. After StockJungle went belly-up, with its focus on momentum investing, I started to take a close interest in the contrarian investment philosophy of David Dreman. I began writing for Motley Fool and ultimately Seeking Alpha. My goal is to find underappreciated companies with a focus on returning value to investors.Analyst’s Disclosure: I/we have a beneficial long position in the shares of OSPN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.