Altisource Portfolio Solutions SA (ASPS) AI Stock Analysis

• Market Cap: $125.91M
• Dividend Yield: N/A
• Average Volume (3M): 23.77K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.67
• Revenue Growth: 12.92%
• EPS Growth: 66.51%
• Country: US
• Employees: 1,160
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): 0.19
• Shares Outstanding: 10,986,709
• 10 Day Avg. Volume: 15,568
• 30 Day Avg. Volume: 23,771
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 5.17
• Enterprise Value/Ebitda: 23.14
• 1Y Price Target: $10.00
• Price Target Upside: -12.74% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: ―

Altisource faces significant financial challenges with persistent losses and high leverage, weighing heavily on the stock's overall score. Technical indicators show some upward momentum, but valuation metrics are unfavorable. Positive corporate actions and a generally optimistic earnings call outlook provide some support, but the risks outweigh the strengths.

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's financial performance is weak, characterized by losses and high leverage. The income statement shows negative net income with low margins, and the balance sheet highlights significant solvency issues due to negative equity. Although there are slight improvements in cash flow, the overall financial health poses substantial risks.

Income Statement

Altisource's income statement reveals significant challenges. The company shows a negative net income, indicating losses. Despite some revenue growth from the previous year, margins remain weak with negative net profit and low gross profit margins. The EBIT and EBITDA margins are also low, pointing to ongoing profitability issues.

Balance Sheet

The balance sheet reflects a high risk profile with negative stockholders' equity, signaling potential solvency issues. The company is heavily leveraged with a high debt-to-equity ratio due to negative equity. There is a lack of financial stability, which poses a significant risk to stakeholders.

Cash Flow

Cash flow analysis indicates struggles with negative operating and free cash flows, though there is slight improvement compared to previous periods. The operating cash flow to net income ratio is unfavorable, and the free cash flow to net income ratio is also negative, highlighting liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.27M	160.13M	145.07M	153.12M	178.45M	365.55M
Gross Profit	50.86M	49.53M	29.65M	21.82M	7.09M	60.35M
EBITDA	11.36M	11.52M	-6.90M	-19.63M	-37.97M	-121.00K
Net Income	-6.89M	-35.64M	-56.29M	-52.83M	11.81M	-66.31M
Balance Sheet
Total Assets	142.94M	143.61M	154.86M	195.00M	257.81M	265.69M
Cash, Cash Equivalents and Short-Term Investments	29.98M	29.81M	32.52M	51.02M	98.13M	58.26M
Total Debt	193.87M	233.86M	219.13M	245.23M	243.64M	242.66M
Total Liabilities	244.87M	300.32M	279.91M	313.88M	326.68M	348.24M
Stockholders Equity	-98.92M	-157.38M	-125.67M	-119.65M	-70.14M	-83.77M
Cash Flow
Free Cash Flow	-8.28M	-5.03M	-21.83M	-45.75M	-61.78M	-25.11M
Operating Cash Flow	-8.25M	-5.03M	-21.83M	-44.89M	-60.41M	-22.40M
Investing Cash Flow	2.23M	2.25M	0.00	-767.00K	102.76M	47.22M
Financing Cash Flow	6.30M	55.00K	2.98M	-2.22M	-2.30M	-49.31M

Altisource Portfolio Solutions SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 11.46 is above the 20-day moving average (MA) of 11.05, above the 50-day MA of 11.24, and above the 200-day MA of 7.64, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.45 is Neutral, 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
RMAX	71 Outperform	$306.99M	20.01	2.21%	―	-5.21%	―
REAX	70 Outperform	$1.12B	―	-31.81%	―	72.57%	65.15%
Sector *	63 Neutral	$7.06B	13.54	-0.50%	6.96%	4.08%	-25.24%
DOUG	56 Neutral	$241.29M	―	-36.97%	―	8.64%	1.81%
OPAD	55 Neutral	$157.51M	―	-111.30%	―	-30.44%	15.55%
OPEN	53 Neutral	$3.27B	―	-41.33%	―	14.07%	27.59%
ASPS	50 Neutral	$125.91M	―	26.79%	―	12.92%	66.51%

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.