Altisource Story

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ASPS -- USA Stock  

USD 12.30  1.04  7.80%

The next fiscal quarter end is expected on the 30th of September 2020. The stock is currently experiencing an active upward rally. Altisource Portfolio Working Capital is relatively stable at the moment as compared to the past year. Altisource Portfolio reported last year Working Capital of 96.61 Million. As of 08/16/2020, Asset Turnover is likely to grow to 1.16, while Average Equity is likely to drop slightly above 196.6 M. As many passive investors are finally getting excited about financial services space, Altisource Portfolio Solutions could be a good starting point. What exactly are Altisource Portfolio shareholders getting in September?
Published over a month ago
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Will Altisource (NASDAQ:ASPS) private investors stop to exit in September?
The company currently holds 312.9 M in liabilities with Debt to Equity (D/E) ratio of 110.3, indicating Altisource Portfolio may have difficulties to generate enough cash to satisfy its financial obligations. Altisource Portfolio has a current ratio of 1.84, which is within standard range for the sector. The company has Profit Margin (PM) of (69.27) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (2.0) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.02.
Altisource Portfolio financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Altisource Portfolio, including all of Altisource Portfolio's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Altisource Portfolio assets, the company is considered highly leveraged. Understanding the composition and structure of overall Altisource Portfolio debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Altisource Total Liabilities

Altisource Portfolio liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Altisource Portfolio has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Altisource Portfolio balance sheet include debt obligations and money owed to different Altisource Portfolio vendors, workers, and loan providers. Below is the chart of Altisource short long-term liabilities accounts currently reported on its balance sheet.
You can use Altisource Portfolio Solutions financial leverage analysis tool to get a better grip on understanding its financial position

How important is Altisource Portfolio's Liquidity

Altisource Portfolio financial leverage refers to using borrowed capital as a funding source to finance Altisource Portfolio Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Altisource Portfolio financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Altisource Portfolio's total debt and its cash.

Another Deeper Perspective

The latest price spike of Altisource Portfolio could raise concerns from retail investors as the firm closed today at a share price of 8.21 on very low momentum in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 8.01. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Altisource Portfolio partners.

Liabilities Breakdown

101.6 M
Current Liabilities
343.9 M
Long-Term Liabilities
Total Liabilities445.52 Million
Current Liabilities101.64 Million
Long-Term Liabilities343.88 Million
Tax Liabilities2.43 Million

Altisource Portfolio implied volatility may change after the spike

Variance is down to 62.38. It may connote a possible volatility fall. Altisource Portfolio Solutions is displaying above-average volatility over the selected time horizon. Investors should scrutinize Altisource Portfolio Solutions independently to ensure intended market timing strategies are aligned with expectations about Altisource Portfolio volatility.

Our Conclusion on Altisource Portfolio

While some other companies within the mortgage finance industry are still a little expensive, even after the recent corrections, Altisource Portfolio may offer a potential longer-term growth to retail investors. In closing, as of the 16th of August 2020, our analysis shows that Altisource Portfolio responds to the market. The enterprise is undervalued and projects below average probability of distress for the next 2 years. However, our actual 30 days buy vs. sell advice on the enterprise is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Altisource Portfolio Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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