Stock Analysis

Altisource Portfolio Solutions S.A. (NASDAQ:ASPS): Is Breakeven Near?

  •  Updated
Source: Shutterstock

Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States, India, Luxembourg, Uruguay, and internationally. With the latest financial year loss of US$67m and a trailing-twelve-month loss of US$66m, the US$198m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Altisource Portfolio Solutions' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Altisource Portfolio Solutions

Expectations from some of the American Real Estate analysts is that Altisource Portfolio Solutions is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$11m in 2023. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 88% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

NasdaqGS:ASPS Earnings Per Share Growth February 18th 2022

Underlying developments driving Altisource Portfolio Solutions' growth isn’t the focus of this broad overview, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Altisource Portfolio Solutions currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Altisource Portfolio Solutions, so if you are interested in understanding the company at a deeper level, take a look at Altisource Portfolio Solutions' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

  1. Valuation: What is Altisource Portfolio Solutions worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Altisource Portfolio Solutions is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Altisource Portfolio Solutions’s board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

What are the risks and opportunities for Altisource Portfolio Solutions?

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.

View Full Analysis


  • Trading at 93.5% below our estimate of its fair value

  • Revenue is forecast to grow 24.78% per year


  • Debt is not well covered by operating cash flow

  • Shareholders have been substantially diluted in the past year

  • Volatile share price over the past 3 months

View all Risks and Rewards

Share Price

Market Cap

1Y Return

View Company Report

Further research on
Altisource Portfolio Solutions

ValuationFinancial HealthInsider TradingManagement Team