Altisource Portfolio Solutions SA (ASPS) AI Stock Analysis

• Market Cap: $80.58M
• Dividend Yield: N/A
• Average Volume (3M): 141.23K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.14
• Revenue Growth: 10.69%
• EPS Growth: 51.69%
• Country: US
• Employees: 1,071
• Sector: Real Estate
• Sector Strength: 68
• Industry: Real Estate - Services
• EPS (TTM): -1.25
• Shares Outstanding: 87,582,130
• 10 Day Avg. Volume: 149,701
• 30 Day Avg. Volume: 141,233
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.13
• Price to Cash Flow (P/CF): -3.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.00
• Price Target Upside: 986.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Altisource Portfolio Solutions faces significant financial challenges with declining revenues, persistent losses, and high leverage. While recent financial restructuring and positive earnings guidance offer some optimism, the company's precarious financial position and challenging valuation metrics weigh heavily on its overall stock score. Technical indicators suggest short-term momentum but do not offset the broader financial risks.

Altisource Portfolio Solutions SA Business Overview & Revenue Model

Company Description

Altisource Portfolio Solutions SA (ASPS) is a Luxembourg-based company that offers a wide range of services and technology products for the real estate and mortgage industries. The company's core offerings include asset management, origination, and default services, which are designed to enhance the efficiency and effectiveness of real estate operations and mortgage servicing. Altisource's solutions are utilized by mortgage servicers, real estate investors, and financial institutions to streamline processes, reduce costs, and manage risk in the management and disposition of real estate assets.

How the Company Makes Money

Altisource Portfolio Solutions generates revenue primarily through service fees and technology solutions provided to its clients in the real estate and mortgage sectors. The company's revenue streams include mortgage and real estate services, such as property valuation, asset management, and foreclosure services. Additionally, Altisource earns income from its technology platforms, which support mortgage originations and servicing operations. Key partnerships with financial institutions and real estate companies, as well as a diversified client base, contribute significantly to its earnings. The company's focus on efficiency improvements and cost reductions in real estate transactions allows it to maintain steady revenue streams from ongoing service contracts and technology subscriptions.

Altisource Portfolio Solutions SA Financial Statement Overview

Summary

Altisource Portfolio Solutions SA is facing significant financial challenges, including declining revenues, persistent losses, negative equity, and cash flow issues. The company's high debt levels further exacerbate the risk, necessitating strategic restructuring for long-term viability.

Income Statement

The income statement shows declining revenue over the years with significant net losses. The TTM (Trailing-Twelve-Months) data indicates a slight revenue increase, but profitability remains a major concern, with negative EBIT and net income margins. The company is struggling to maintain positive EBITDA, impacting its operational efficiency.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, indicating high leverage and financial instability. The debt-to-equity ratio is not calculable due to negative equity, highlighting the company's excessive reliance on debt financing. The equity ratio is negative, further emphasizing the risk of insolvency.

Cash Flow

Cash flow analysis shows consistent negative operating cash flows and free cash flows, reflecting ongoing cash burn. The free cash flow to net income ratio is skewed due to negative figures, and the company faces challenges in converting revenue into positive cash flow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
159.91M	145.07M	153.12M	178.45M	365.55M	648.65M
	Gross Profit
41.01M	29.65M	21.82M	7.09M	60.35M	155.40M
	EBIT
-184.00K	-16.77M	-32.94M	-59.96M	-32.01M	18.05M
	EBITDA
6.17M	-6.90M	-19.63M	-37.97M	-121.00K	78.05M
	Net Income Common Stockholders
-40.02M	-56.29M	-52.83M	11.81M	-66.31M	-305.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.62M	32.52M	51.02M	98.13M	58.26M	125.36M
	Total Assets
165.10M	154.86M	195.00M	257.81M	265.69M	385.12M
	Total Debt
521.00K	219.13M	245.23M	243.64M	242.66M	287.88M
	Net Debt
-19.10M	186.61M	194.21M	145.50M	184.39M	205.14M
	Total Liabilities
45.52M	279.91M	313.88M	326.68M	348.24M	406.48M
	Stockholders Equity
117.94M	-125.67M	-119.65M	-70.14M	-83.77M	-22.83M
Cash Flow		Free Cash Flow
-7.75M	-21.83M	-45.75M	-61.78M	-25.11M	44.53M
	Operating Cash Flow
-7.56M	-21.83M	-44.89M	-60.41M	-22.40M	46.69M
	Investing Cash Flow
0.00	0.00	-767.00K	102.76M	47.22M	44.89M
	Financing Cash Flow
-851.51K	2.98M	-2.22M	-2.30M	-49.31M	-69.04M

Altisource Portfolio Solutions SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASPS, the sentiment is Positive. The current price of 0.92 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.79, and below the 200-day MA of 0.98, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 8.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASPS.

Altisource Portfolio Solutions SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBRE	70 Outperform	$35.13B	36.23	11.61%	―	11.95%	-1.25%
JLL	68 Neutral	$10.17B	18.44	8.37%	―	12.87%	142.90%
REZI	66 Neutral	$2.32B	20.80	3.83%	―	8.31%	-49.90%
Z	64 Neutral	$15.48B	―	-2.39%	―	14.96%	29.56%
Sector *	61 Neutral	$4.26B	15.61	-3.60%	11.29%	6.17%	-21.11%
RMAX	57 Neutral	$237.20M	20.56	1.69%	―	-5.52%	―
ASPS	48 Neutral	$80.58M	―	26.79%	―	10.69%	51.69%

Altisource Portfolio Solutions SA Corporate Events

Altisource Announces Stakeholder Warrants Distribution Date

On March 31, 2025, Altisource Portfolio Solutions announced the distribution date for its Stakeholder Warrants as April 3, 2025. This distribution, which includes both Cash Exercise and Net Settle Stakeholder Warrants, is contingent upon shareholder approval and other conditions, all of which have been satisfied. The warrants will allow stakeholders to purchase shares of common stock under specific terms and are set to be listed on the Nasdaq Global Select Market, pending approval.

Altisource Approves 2025 Incentive Plan with New Metrics

On February 25, 2025, Altisource Portfolio Solutions S.A.’s Compensation Committee approved the 2024 Annual Incentive Plan, which included incentive compensation awards for its executive officers. The plan, initially adopted in December 2023, set target bonuses based on performance metrics such as Consolidated Service Revenue and Adjusted EBITDA Budget Objectives. The achievements under the 2024 AIP were partially met, leading to a discretionary decision by the Committee to pay the incentives entirely in Restricted Stock Units (RSUs). Notably, CEO William B. Shepro voluntarily reduced his RSUs to benefit other employees, acknowledging their contributions to significant company transactions. Additionally, the 2025 Annual Incentive Plan was adopted, outlining new performance metrics and target bonuses for the upcoming year.

Altisource Completes Major Financial Restructuring in 2025

On February 19, 2025, Altisource Portfolio Solutions S.A. completed a significant financial restructuring by closing its Term Loan Exchange Transactions and entering a $12.5 million Super Senior Facility. This exchange involved converting $232.8 million of senior secured term loans into a new $160 million first lien loan and issuing approximately 58.2 million common shares. The restructuring aims to strengthen Altisource’s balance sheet, positioning the company for sustainable long-term growth and value creation.

Altisource Approves Key Amendments to Equity Plans

On February 18, 2025, Altisource Portfolio Solutions S.A. held two significant shareholder meetings where key amendments to their equity plans and share structures were approved. These decisions, including increasing the number of shares reserved under their 2009 Equity Incentive Plan and adjusting their share capital and authorization limits, aim to enhance the company’s flexibility in managing its stock and capital structure, potentially impacting shareholder value and market operations.

Altisource Updates Executive Compensation and Stock Units

In a significant update, Altisource Portfolio Solutions announced changes to its executive compensation structure and management restricted stock units. As of February 1, 2025, CEO William B. Shepro and CFO Michelle D. Esterman will revert to receiving their full base compensation in cash, reversing a previous modification to receive up to 30% in company stock. Additionally, on January 28, 2025, the company executives agreed to terminate certain market-based restricted stock units, a move aligning with Altisource’s broader restructuring efforts. In a strategic decision to align management incentives with the company’s long-term performance, the board approved new restricted stock units for executives, conditional on the completion of planned financial transactions requiring shareholder approval.