Altisource Asset Profitability Analysis

AAMC Stock  USD 2.19  0.20  10.05%   
Based on Altisource Asset's profitability indicators, Altisource Asset Management is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in August. Profitability indicators assess Altisource Asset's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2012-12-31
Previous Quarter
-12.3 M
Current Value
-3.1 M
Quarterly Volatility
8.9 M
 
Yuan Drop
 
Covid
At present, Altisource Asset's Days Of Sales Outstanding is projected to increase significantly based on the last few years of reporting. At present, Altisource Asset's Net Interest Income is projected to increase significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 7.5 M, whereas Operating Income is projected to grow to (23.5 M).
For Altisource Asset profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Altisource Asset to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Altisource Asset Management utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Altisource Asset's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Altisource Asset Management over time as well as its relative position and ranking within its peers.
  
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Is Real Estate Management & Development space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Altisource Asset. If investors know Altisource will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Altisource Asset listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.98)
Earnings Share
39.85
Revenue Per Share
0.452
Quarterly Revenue Growth
(0.89)
Return On Assets
(0.28)
The market value of Altisource Asset Man is measured differently than its book value, which is the value of Altisource that is recorded on the company's balance sheet. Investors also form their own opinion of Altisource Asset's value that differs from its market value or its book value, called intrinsic value, which is Altisource Asset's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Altisource Asset's market value can be influenced by many factors that don't directly affect Altisource Asset's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Altisource Asset's value and its price as these two are different measures arrived at by different means. Investors typically determine if Altisource Asset is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altisource Asset's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Altisource Asset Man Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Altisource Asset's current stock value. Our valuation model uses many indicators to compare Altisource Asset value to that of its competitors to determine the firm's financial worth.
Altisource Asset Management is number one stock in return on equity category among its peers. It also is number one stock in return on asset category among its peers . At present, Altisource Asset's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Altisource Asset's earnings, one of the primary drivers of an investment's value.

Altisource Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Altisource Asset

Return On Equity

 = 

Net Income

Total Equity

 = 
-1.23
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Altisource Asset

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.28
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Altisource Return On Asset Comparison

Altisource Asset is currently under evaluation in return on asset category among its peers.

Altisource Asset Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Altisource Asset, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Altisource Asset will eventually generate negative long term returns. The profitability progress is the general direction of Altisource Asset's change in net profit over the period of time. It can combine multiple indicators of Altisource Asset, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income14 K14.7 K
Operating Income-24.8 M-23.5 M
Income Before Tax-32 M-30.4 M
Net Loss-32.5 M-30.9 M
Income Tax Expense573 K544.4 K
Net Loss-24.4 M-23.2 M
Non Operating Income Net Other-2.2 M-2.1 M
Total Other Income Expense Net-7.2 M-6.8 M
Net Loss-18.3 M-17.4 M
Net Interest Income3.5 M3.7 M
Interest Income7.1 M7.5 M
Change To Netincome-9.8 M-10.3 M
Net Loss(11.12)(10.57)
Income Quality(0.17)(0.16)
Net Income Per E B T 1.02  0.65 

Altisource Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Altisource Asset. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Altisource Asset position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Altisource Asset's important profitability drivers and their relationship over time.

Altisource Asset Profitability Trends

Altisource Asset profitability trend refers to the progression of profit or loss within a business. An upward trend means that Altisource Asset's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Altisource Asset's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Altisource Asset Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Altisource Asset different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Altisource Asset in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Altisource Asset's future profitability.

Use Altisource Asset in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Altisource Asset position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Altisource Asset will appreciate offsetting losses from the drop in the long position's value.

Altisource Asset Pair Trading

Altisource Asset Management Pair Trading Analysis

The ability to find closely correlated positions to Altisource Asset could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Altisource Asset when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Altisource Asset - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Altisource Asset Management to buy it.
The correlation of Altisource Asset is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Altisource Asset moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Altisource Asset Man moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Altisource Asset can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Altisource Asset position

In addition to having Altisource Asset in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Financials ETFs
Financials ETFs Theme
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Additional Information and Resources on Investing in Altisource Stock

When determining whether Altisource Asset Man offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Altisource Asset's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Altisource Asset Management Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Altisource Asset Management Stock:
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You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project Altisource Asset's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Altisource Asset Man at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Altisource Asset's income statement, its balance sheet, and the statement of cash flows.
Potential Altisource Asset investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Altisource Asset investors may work on each financial statement separately, they are all related. The changes in Altisource Asset's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Altisource Asset's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.