NasdaqGS:ASPS

Stock Analysis Report

Altisource Portfolio Solutions

Executive Summary

Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally.

Rewards

Trading at 7.7% below its fair value

Risk Analysis

Earnings have declined by -2.16% per year over past 5 years

Interest payments are not well covered by earnings



Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

How has Altisource Portfolio Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.3%

ASPS

1.0%

US Real Estate

0.8%

US Market


1 Year Return

-15.0%

ASPS

19.2%

US Real Estate

17.8%

US Market

Return vs Industry: ASPS underperformed the US Real Estate industry which returned 19.2% over the past year.

Return vs Market: ASPS underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

ASPSIndustryMarket
7 Day1.3%1.0%0.8%
30 Day3.5%3.7%1.8%
90 Day-15.2%6.2%4.1%
1 Year-15.0%-15.0%20.2%19.2%20.4%17.8%
3 Year-26.9%-26.9%32.0%28.8%45.9%36.4%
5 Year-60.6%-60.6%17.8%13.9%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Altisource Portfolio Solutions undervalued compared to its fair value and its price relative to the market?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASPS ($18.84) is trading below our estimate of fair value ($20.41)

Significantly Below Fair Value: ASPS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ASPS is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: ASPS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ASPS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ASPS is good value based on its PB Ratio (1x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Altisource Portfolio Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.7%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Altisource Portfolio Solutions has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Altisource Portfolio Solutions performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASPS is currently unprofitable.

Growing Profit Margin: ASPS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ASPS is unprofitable, and losses have increased over the past 5 years at a rate of -2.2% per year.

Accelerating Growth: Unable to compare ASPS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ASPS is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-25%).


Return on Equity

High ROE: ASPS has a negative Return on Equity (-3.69%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Altisource Portfolio Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: ASPS's short term assets ($187.3M) exceed its short term liabilities ($89.0M).

Long Term Liabilities: ASPS's short term assets ($187.3M) do not cover its long term liabilities ($311.5M).


Debt to Equity History and Analysis

Debt Level: ASPS's debt to equity ratio (100.6%) is considered high.

Reducing Debt: ASPS's debt to equity ratio has reduced from 667% to 100.6% over the past 5 years.

Debt Coverage: ASPS's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: ASPS is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: ASPS's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Altisource Portfolio Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate ASPS'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 ASPS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ASPS'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 ASPS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

William Shepro (49yo)

10.4yrs

Tenure

US$6,096,155

Compensation

Mr. William B. Shepro, also known as Bill, J.D. serves as Chairman at Altisource Portfolio Solutions S.A. since July 2019. Mr. Shepro has been the Chief Executive Officer of Altisource Portfolio Solutions  ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD6.10M) is above average for companies of similar size in the US market ($USD1.12M).

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


Management Age and Tenure

4.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: ASPS's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

53.5yo

Average Age

Experienced Board: ASPS's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: ASPS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$25,08815 Nov 19
William Shepro
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board
Shares1,400
Max PriceUS$17.92
BuyUS$11,00207 Nov 19
Roland Müller-Ineichen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares616
Max PriceUS$17.86
BuyUS$443,87804 Nov 19
Deer Park Road Corporation
EntityCompany
Shares25,000
Max PriceUS$17.76
BuyUS$12,39031 Oct 19
Michelle Esterman
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares780
Max PriceUS$15.88
BuyUS$49,91730 Oct 19
William Shepro
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board
Shares3,150
Max PriceUS$15.89
BuyUS$5,01630 Oct 19
Gregory Ritts
EntityIndividual
Role
Chief Legal Officer
Chief Legal & Compliance Officer
Shares300
Max PriceUS$16.72
SellUS$125,00010 May 19
Wlliam Linn
EntityIndividual
Shares5,000
Max PriceUS$25.00

Ownership Breakdown

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


Management Team

  • William Shepro (49yo)

    Chairman of the Board

    • Tenure: 10.4yrs
    • Compensation: US$6.10m
  • Kevin Wilcox (55yo)

    Chief Administration & Risk Officer and Corporate Secretary

    • Tenure: 10.3yrs
    • Compensation: US$3.78m
  • John Vella (59yo)

    Chief Revenue Officer

    • Tenure: 4.9yrs
  • Michelle Esterman (46yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: US$859.54k
  • Marcello Mastioni (44yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.58m
  • Gregory Ritts (50yo)

    Chief Legal & Compliance Officer

    • Tenure: 5.2yrs
    • Compensation: US$1.07m
  • Kirk Willison

    Senior Vice President of Government & Industry Relations

    • Tenure: 4.3yrs
  • Liz Murphy

    VP & Global Marketing Lead

    • Tenure: 3.2yrs
  • Israel Meir

    President of Technology

    • Tenure: 2.7yrs
  • Lisen Syp

    Director of Communications

    • Tenure: 0yrs

Board Members

  • William Shepro (49yo)

    Chairman of the Board

    • Tenure: 10.4yrs
    • Compensation: US$6.10m
  • Roland Müller-Ineichen (58yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$263.42k
  • Scott Burg (40yo)

    Additional Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$16.08k
  • Joseph Morettini (66yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$245.36k

Company Information

Altisource Portfolio Solutions S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altisource Portfolio Solutions S.A.
  • Ticker: ASPS
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: US$295.576m
  • Shares outstanding: 15.69m
  • Website: https://www.altisource.com

Number of Employees


Location

  • Altisource Portfolio Solutions S.A.
  • 40, avenue Monterey
  • Luxembourg City
  • 2163
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASPSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2009

Biography

Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates in two segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:07
End of Day Share Price2019/12/11 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.