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Altisource Portfolio Solutions S.A. (ASPS)

This financial servicing company beat analysts’ estimates by $0.43 in the last quarter, and the shares crossed above their 50-day moving average this week, a bullish sign.

Altisource Portfolio Solutions S.A. (ASPS)
From Validea Hot List Newsletter

Altisource Portfolio Solutions S.A. (ASPS) is a provider of marketplace and transaction solutions for the real estate, mortgage and consumer debt industries offering both distribution and content. 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. Altisource’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.

Strategy: P/E/Growth Investor
Based on: Peter Lynch
Guru Score: 93%

P/E/GROWTH RATIO: [PASS]: The P/E/G ratio for ASPS (0.20) is very favorable.

SALES AND P/E RATIO: [PASS]: ASPS, whose sales are $1,037.5 million, needs to have a P/E below 40 to pass this criterion. ASPS’s P/E of (6.72) is considered acceptable.

EPS GROWTH RATE: [PASS]: This methodology likes to see earnings growth in the range of 20% to 50%, as earnings growth over 50% may be unsustainable. The EPS growth rate for ASPS is 32.8%, based on the average of the 3, 4 and 5 year historical EPS growth rates, which is acceptable.

EQUITY/ASSETS RATIO: [PASS]: ASPS’s Equity/Assets ratio (12.00%) is healthy and above the minimum 5% this methodology looks for, thus passing the criterion.

RETURN ON ASSETS: [PASS]: This methodology uses Return on Assets as a way to measure a financial intermediary’s profitability. ASPS’s ROA (11.01%) is above the minimum 1% that this methodology looks for, thus passing the criterion.

John Reese, Validea Hot List Newsletter,, 877-439-0506, January 15, 2016