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 86.9% below its fair value

Earnings are forecast to grow 126.69% per year

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Reasonable growth potential and fair value.


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

0.8%

ASPS

1.0%

US Real Estate

1.5%

US Market


1 Year Return

-21.8%

ASPS

10.3%

US Real Estate

20.1%

US Market

Return vs Industry: ASPS underperformed the US Real Estate industry which returned 10.3% over the past year.

Return vs Market: ASPS underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ASPSIndustryMarket
7 Day0.8%1.0%1.5%
30 Day1.4%2.7%1.4%
90 Day10.4%9.8%8.7%
1 Year-21.8%-21.8%11.2%10.3%22.7%20.1%
3 Year-14.9%-14.9%29.7%26.6%50.1%40.5%
5 Year-16.4%-16.4%16.4%12.6%73.1%54.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASPS ($19.7) is trading below our estimate of fair value ($149.9)

Significantly Below Fair Value: ASPS is trading below fair value by more than 20%.


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 (1.1x) compared to the US Real Estate industry average (1.4x).


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?

126.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASPS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ASPS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ASPS's is expected to become profitable in the next 3 years.

Revenue vs Market: ASPS's revenue (8.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ASPS's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ASPS's Return on Equity is forecast to be high in 3 years time


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 (-31.1%).


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.


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).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ASPS has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: ASPS has been profitable on average in the past, therefore cash runway is not a concern.


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%industryaverage2.2%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

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

William Shepro (49yo)

10.6yrs

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 ($USD6.10M) is above average for companies of similar size in the US market ($USD1.68M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Shepro
Chairman of the Board10.6yrsUS$6.10m2.76% $8.5m
Michelle Esterman
Chief Financial Officer1.5yrsUS$859.54k0.11% $339.1k
Marcello Mastioni
Chief Operating Officer0.9yrsUS$1.58m0.19% $578.7k
Kevin Wilcox
Chief Administration & Risk Officer and Corporate Secretary10.5yrsUS$3.78m1.51% $4.7m
Gregory Ritts
Chief Legal & Compliance Officer2yrsUS$1.07m0.13% $399.1k
Israel Meir
President of Technology2.8yrsno datano data
Lisen Syp
Director of Communications0yrsno datano data
Elizabeth Murphy
VP & Global Marketing Lead3.3yrsno datano data
John Vella
Chief Revenue Officer5.1yrsno datano data
Kirk Willison
Senior Vice President of Government & Industry Relations4.5yrsno datano data

3.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: ASPS's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Shepro
Chairman of the Board10.6yrsUS$6.10m2.76% $8.5m
Roland Müller-Ineichen
Independent Director10.6yrsUS$263.42k0.21% $662.6k
Scott Burg
Additional Independent Director1.4yrsUS$16.08k0.020% $61.9k
Joseph Morettini
Independent Director2.8yrsUS$245.36k0.066% $204.9k

2.1yrs

Average Tenure

53.5yo

Average Age

Experienced Board: ASPS's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$309.068m
  • 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 segments, Mortgage Market and Real Estate Market. The company offers property preservation and inspection, real estate brokerage and auction, title insurance and settlement, appraisal management, broker and non-broker valuation, foreclosure trustee, mortgage charge-off collection, residential and commercial loan disbursement processing, and residential and commercial construction inspection and risk mitigation services, as well as valuation data; residential and commercial loan servicing, vendor management, marketplace transaction and payment management, and default services technologies; and document management platform. It also provides fulfillment, loan certification, and mortgage banker cooperative management services; loan origination system; loan certification and mortgage fraud insurance; and vendor management oversight platform. In addition, the company offers mortgage brokerage and homeowners insurance solutions; and buy-renovate-lease-sell and data solutions, as well as real estate brokerage services under the Owners.com name. Further, it provides post-charge-off consumer debt collection services, customer relationship management services, and information technology infrastructure management services. The company serves financial institutions, government-sponsored enterprises, utility companies, commercial banks, servicers, investors, non-bank originators, correspondent lenders, mortgage bankers, insurance companies, and financial services companies. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:50
End of Day Share Price2020/02/14 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.