Altisource Portfolio Solutions S.A. (NASDAQ: ASPS)

Sector: Real Estate Industry: Real Estate Services CIK: 0001462418
Market Cap 63.39 Mn
P/B -0.61
P/E 868.29
P/S 0.37
ROIC (Qtr) 12.71
Div Yield % 0.00
Rev 1y % (Qtr) 3.40
Total Debt (Qtr) 192.49 Mn
Debt/Equity (Qtr) -1.85
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About

Altisource Portfolio Solutions S.A., known as ASPS on the NASDAQ Global Select Market, operates in the real estate and mortgage industries, providing integrated services and innovative technologies. With a presence in the United States, India, Uruguay, and Luxembourg, the company serves a wide range of clients including mortgage servicers, mortgage originators, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, correspondent,...

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Investment thesis

Bull case

  • Healthy cash reserves of 28.60M provide 23.35x coverage of short-term debt 1.23M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 66.29M provide exceptional 18.93x coverage of deferred revenue 3.50M, showing strong service capability backing.
  • Cash position of 28.60M provides exceptional 105.14x coverage of minority interest expenses 272000, indicating strong liquidity.
  • Retained earnings of (355.88M) represent substantial 3.41x of equity (104.21M), indicating strong internal capital generation.
  • Robust tangible asset base of 66.29M provides 4.51x coverage of working capital 14.71M, indicating strong operational backing.

Bear case

  • Operating cash flow of (5.96M) provides insufficient coverage of deferred revenue obligations of 3.50M, which is -1.70x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (5.96M) shows concerning coverage of stock compensation expenses of 3.89M, with a -1.53 ratio indicating potential earnings quality issues.
  • Free cash flow of (6.01M) provides weak coverage of capital expenditures of 49000, with a -122.65 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (5.96M) provides minimal 0.40x coverage of tax expenses of (14.72M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 4.87M show weak coverage of depreciation charges of 6.99M, with a 0.70 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 42.12 Bn 36.40 1.04 9.99 Bn
2 BEKE KE Holdings Inc. 19.37 Bn 39.77 1.33 2.96 Bn
3 CSGP Costar Group, Inc. 18.57 Bn 914.80 6.08 1.18 Bn
4 JLL Jones Lang Lasalle Inc 13.60 Bn 21.53 0.54 3.48 Bn
5 FSV FirstService Corp 7.02 Bn 48.37 1.28 1.38 Bn
6 CIGI Colliers International Group Inc. 5.59 Bn 54.27 1.01 2.29 Bn
7 COMP Compass, Inc. 5.18 Bn -91.82 0.78 0.48 Bn
8 OPEN Opendoor Technologies Inc. 3.12 Bn -9.84 0.66 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.62 1.18
EV to Cash from Ops. EV/CFO -38.13 -6.57
EV to Debt EV to Debt 1.18 5.19
EV to EBIT EV/EBIT 46.68 4.86
EV to EBITDA EV/EBITDA 14.90 13.56
EV to Free Cash Flow [EV/FCF] EV/FCF -37.81 -11.14
EV to Market Cap EV to Market Cap 3.59 7.70
EV to Revenue EV/Rev 1.34 3.49
Price to Book Value [P/B] P/B -0.61 1.76
Price to Earnings [P/E] P/E 868.29 40.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.46
Interest Coverage Int. cover (Qtr) 0.25 -2.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -12,527.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.91 24.62
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -101.02 10.86
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 96.58 33.08
EBIT Growth (1y) % EBIT 1y % (Qtr) 124.07 19.37
EBT Growth (1y) % EBT 1y % (Qtr) 60.03 28.48
EPS Growth (1y) % EPS 1y % (Qtr) 82.26 29.29
FCF Growth (1y) % FCF 1y % (Qtr) 23.56 67.74
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.15 33.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.21 1.44
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio (Qtr) 0.72 1.45
Current Ratio Curr Ratio (Qtr) 1.37 2.16
Debt to Equity Ratio Debt/Equity (Qtr) -1.85 -0.07
Interest Cover Ratio Int Coverage (Qtr) 0.25 -2.20
Times Interest Earned Times Interest Earned (Qtr) 0.25 -2.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.00 -120.34
EBIT Margin % EBIT Margin % (Qtr) 2.87 -135.17
EBT Margin % EBT Margin % (Qtr) -8.64 -142.98
Gross Margin % Gross Margin % (Qtr) 29.60 32.99
Net Profit Margin % Net Margin % (Qtr) 0.00 -138.31