When Will Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) Breakeven?

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. On 31 December 2020, the US$141m market-cap company posted a loss of US$67m for its most recent financial year. Many investors are wondering about the rate at which Altisource Portfolio Solutions will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Altisource Portfolio Solutions

According to the 2 industry analysts covering Altisource Portfolio Solutions, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$12m in 2023. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 78% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Altisource Portfolio Solutions' growth isn’t the focus of this broad overview, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Altisource Portfolio Solutions is it 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:

There are key fundamentals of Altisource Portfolio Solutions which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Altisource Portfolio Solutions, take a look at Altisource Portfolio Solutions' company page on Simply Wall St. We've also compiled a list of pertinent factors 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.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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