Stock on Focus: Altisource Portfolio Solutions S.A. (ASPS)

Company Profile:

Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. The Company operates in three segments: Mortgage Services, Financial Services and Technology Services. The Company’s Mortgage Services segment provides services that span the mortgage and real estate lifecycle, and are outsourced by loan servicers, loan originators, investors and other sellers of single family homes. The Financial Services segment provides collection and customer relationship management services to debt originators and servicers, and the utility, insurance and hotel industries. The Company’s Technology Services consists of REALSuite of software applications, Equator, LLC (Equator) software applications, Mortgage Builder software applications and its information technology (IT) infrastructure management services. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg.

Recent News:

Altisource Portfolio Solutions SA reported third-quarter profit of $37 million. It had profit of $1.82 per share.Earnings, adjusted for one-time gains and costs, came to $2.27 per share.

On October 13, 2015, Altisource Portfolio Solutions SA announced the acquisitions of both RentRange and Investability — substantially expanding Altisource’s offerings, reach and data capabilities in the real estate services market.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ASPS’s strengths can be seen in its better growth, strong profitability and better efficiency. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 54.07. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Altisource Portfolio Solutions S.A. (ASPS) a STRONG BUY.