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1. Company Snapshot

1.a. Company Description

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.It provides property preservation and inspection services, payment management technologies, and a vendor management oversight software-as-a-service (SaaS) platform.The company also offers Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; and Equator, a SaaS-based technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes.


In addition, it provides mortgage loan fulfillment, certification and certification insurance services, technologies, title insurance agent, settlement, real estate valuation services, residential and commercial construction inspection and risk mitigation, foreclosure trustee, and commercial loan servicing technology services.Further, the company operates TrelixTM Connect, Vendorly, RentRange, REALSynergy, Lenders One Loan Automation, and other platform solutions.It serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, originators, correspondent lenders, and mortgage bankers.


Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.

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1.b. Last Insights on ASPS

Altisource Portfolio Solutions S.A.'s recent performance was driven by a proposed distribution of warrants to purchase common stock, announced on February 4, 2025, which is contingent upon shareholder approval and the consummation of the company's debt exchange transaction. The warrants will be issued to stakeholders, including common stockholders, restricted share unit holders, and existing warrant holders, and will allow them to purchase approximately 3.25 shares of common stock at an exercise price of $1.20 per share. Additionally, the company announced the closing of its debt exchange transaction on February 20, 2025, which includes the exchange of its senior secured term loans and the entry into a $12.5 million super senior credit facility. These developments suggest that the company is actively managing its capital structure and exploring new financing options.

1.c. Company Highlights

2. Altisource Portfolio Solutions Beats EPS Estimates with 4% Revenue Growth

Altisource Portfolio Solutions reported a solid third-quarter performance, with total company service revenue growing 4% to $39.7 million, driven by the ramp of the Renovation business and growth in other business segments. The company's adjusted EBITDA was $10.9 million, representing modest growth compared to the third quarter of 2024. The actual EPS came out at '-1.44', beating estimates at '-2.16'. The company's operating cash flow improved by $2.3 million compared to last year, and ended the quarter with $28.6 million in unrestricted cash.

Publication Date: Nov -16

📋 Highlights
  • Service Revenue Growth: Total service revenue increased 4% to $39.7 million, driven by the Renovation business and other segments.
  • Adjusted EBITDA Performance: Adjusted EBITDA reached $10.9 million, showing modest growth compared to Q3 2024.
  • Cash Flow Improvement: Operating cash flow improved by $2.3 million, with $28.6 million in unrestricted cash at quarter-end.
  • Origination Segment Growth: Service revenue rose 9% to $8.5 million, but adjusted EBITDA remained flat due to margin declines.
  • Corporate Segment Loss: Adjusted EBITDA loss widened to $7.3 million, up $100,000 from Q3 2024.

Segment Performance

The Servicer and Real Estate segment grew service revenue 3% to $31.2 million, driven by the ramp of the Renovation business and growth in other businesses. The Origination segment grew service revenue 9% to $8.5 million, driven by growth in the Lenders One business. Bill Shepro noted that the company has a strong sales pipeline and recent sales wins, which are expected to contribute to strong growth in the Origination segment.

Business Environment

The company is operating in a challenging environment, with 90-plus day mortgage delinquency rates remaining near historic lows, while foreclosure starts and sales are increasing. According to Bill Shepro, the increase reflects rising FHA delinquency rates and a weakening real estate market. The MBA's October 2025 forecast projects 5.4 million loans originated in 2025, an 18% increase compared to 2024.

Valuation and Outlook

Altisource Portfolio Solutions trades at a P/S Ratio of 0.6, which is relatively low compared to its historical averages. Analysts estimate next year's revenue growth at 42.0%, which could potentially drive the stock price higher. However, the company's high EV/EBITDA ratio of 25.75 and Net Debt / EBITDA ratio of 15.89 raise concerns about its valuation and debt levels. The company's ROE and ROIC are both negative, indicating that it is not generating returns on its equity and invested capital.

Future Prospects

The company is making progress diversifying its customer base and growing the businesses that represent an outsized growth opportunity for the company. With a strong sales pipeline and recent sales wins, Altisource is well-positioned to drive growth in the Origination segment. However, the company's high debt levels and negative returns on equity and invested capital remain concerns for investors.

3. NewsRoom

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Contrasting PennyMac Mortgage Investment Trust (NYSE:PMT) & Altisource Portfolio Solutions (NASDAQ:ASPS)

Nov -29

Source: defenseworld.net

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Altisource Announces Form S-3 Filing Related to Shares Previously Issued to Lenders

Oct -28

Source: globenewswire.com

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Altisource Portfolio Solutions S.A. (ASPS) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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Altisource Announces Third Quarter 2025 Financial Results

Oct -23

Source: globenewswire.com

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Altisource Portfolio Solutions S.A. Schedules Third Quarter 2025 Conference Call

Oct -20

Source: globenewswire.com

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Empowering Patients: Annual Breast Reconstruction Awareness Day Returns Oct. 15

Oct -15

Source: globenewswire.com

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Altisource Portfolio Solutions: From Broken Trust To Strong Buy

Sep -27

Source: seekingalpha.com

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Equator Expands Customer Network with Leading Real Estate and Mortgage Companies

Aug -18

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.95%)

6. Segments

Servicer and Real Estate

Expected Growth: 7.88%

Altisource's Servicer and Real Estate segments drove 7.88% growth, fueled by increased demand for mortgage servicing and default management services, expansion of real estate brokerage and auction services, and strategic acquisitions. Additionally, the company's technology-enabled solutions and cost savings initiatives contributed to the growth.

Origination

Expected Growth: 8.23%

Altisource Portfolio Solutions S.A.'s 8.23% growth is driven by increasing demand for mortgage servicing and origination services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on technology and process improvements has enhanced operational efficiency, leading to higher volumes and revenue growth.

7. Detailed Products

Mortgage Servicing

Altisource Portfolio Solutions S.A. provides mortgage servicing solutions to help clients manage their mortgage portfolios efficiently.

Default Services

Altisource offers default services to help clients navigate the default process, from foreclosure to REO management.

Property Inspection and Preservation

Altisource provides property inspection and preservation services to help clients protect and maintain their properties.

REO Disposition

Altisource's REO disposition services help clients sell REO properties quickly and efficiently.

Valuation and Appraisal

Altisource provides valuation and appraisal services to help clients determine the value of their properties.

Title and Settlement

Altisource offers title and settlement services to help clients navigate the title process, from search to closing.

8. Altisource Portfolio Solutions S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Altisource Portfolio Solutions S.A. operates in a niche market, providing services to the mortgage and financial industries. While there are some substitutes available, they are not as comprehensive or specialized as Altisource's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Altisource's customers are primarily large financial institutions and mortgage companies, which have limited bargaining power due to their reliance on Altisource's specialized services.

Bargaining Power Of Suppliers

Altisource relies on a network of suppliers to provide services such as property inspection and valuation. While suppliers have some bargaining power, Altisource's scale and specialization reduce their negotiating power.

Threat Of New Entrants

The mortgage and financial services industry is heavily regulated, and new entrants would face significant barriers to entry, including high startup costs and the need for specialized expertise.

Intensity Of Rivalry

The mortgage and financial services industry is highly competitive, with several established players competing for market share. Altisource must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 237.32%
Debt Cost 8.97%
Equity Weight -137.32%
Equity Cost 8.97%
WACC 8.97%
Leverage -172.82%

11. Quality Control: Altisource Portfolio Solutions S.A. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
PATRIZIA

A-Score: 4.2/10

Value: 4.3

Growth: 1.2

Quality: 5.0

Yield: 6.9

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Altisource

A-Score: 3.7/10

Value: 7.6

Growth: 1.9

Quality: 3.8

Yield: 0.0

Momentum: 9.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
MLP

A-Score: 3.7/10

Value: 4.9

Growth: 5.7

Quality: 5.8

Yield: 0.0

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Jeudan

A-Score: 3.7/10

Value: 3.0

Growth: 2.9

Quality: 5.3

Yield: 1.9

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
K-Fast Holding

A-Score: 2.7/10

Value: 6.6

Growth: 3.1

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Peach Property

A-Score: 2.0/10

Value: 6.8

Growth: 1.1

Quality: 2.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.65$

Current Price

8.65$

Potential

-0.00%

Expected Cash-Flows