Macroaxis Stories

Altisource Portfolio is down 2.95

April 5, 2019  By
This post is geared to all Altisource Portfolio management as well as to investors considering exiting their position in the enterprise. I will evaluate if Altisource Portfolio shares are sensibly priced going into May and whether management should be worried. The company current daily volatility is 2.04 percent, with beta of 1.39 and alpha of -0.18 over S&P 500. We found thirty-six available fundamental indicators for Altisource Portfolio Solutions S A which can be compared to its rivals. To make sure the equity is not overpriced, please confirm all Altisource Portfolio fundamentals including its Debt to Equity, and the relationship between Gross Profit and Price to Earnings To Growth . Given that Altisource Portfolio has Number of Shares Shorted of 2.35M, we suggest you validate Altisource Portfolio Solutions S A prevailing market performance to make sure the company can sustain itself down the road. Use Altisource Portfolio to protect your portfolios against small markets fluctuations. The stock experiences unexpected downward movement. The market is reacting to new fundamentals. Check odds of Altisource Portfolio to be traded at $22.72 in 30 days.
Published over a year ago
View all stories for Altisource Portfolio | View All Stories

Reviewed by Ellen Johnson

Altisource Portfolio currently holds 336.41M in liabilities with Debt to Equity (D/E) ratio of 113.3 indicating the organisation may have difficulties to generate enough cash to satisfy its financial obligations. This firm dividends can provide a clue to current valuation of the stock. Altisource Portfolio is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. The company has Profit Margin (PM) of (0.64) % 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 5.13 % which suggests for every 100 dollars of sales it generated a net operating income of 0.05.
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.

Watch out for price decline

Please consider monitoring Altisource Portfolio on a daily basis if you are holding a position in it. Altisource Portfolio is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Altisource Portfolio stock to be traded above the $1 level to remain listed. If Altisource Portfolio stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

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. Financial leverage can amplify the potential profits to Altisource Portfolio's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Altisource Portfolio's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Altisource Portfolio's total debt and its cash.

Altisource Portfolio Gross Profit

Altisource Portfolio Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Altisource Portfolio previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Altisource Portfolio Gross Profit growth over the last 10 years. Please check Altisource Portfolio's gross profit and other fundamental indicators for more details.

Going after Altisource Financials

The current investor indifference towards the small price fluctuations of Altisource Portfolio could raise concerns from investors as the firm closed today at a share price of 23.45 on 237490.000 in volume. The company directors and management did not add any value to Altisource Portfolio investors in March. However, most investors can still diversify their portfolios with Altisource Portfolio to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.0441. The current volatility is consistent with the ongoing market swings in March 2019 as well as with Altisource Portfolio unsystematic, company specific events. Altisource Portfolio is selling at 23.67. That is 2.95 percent decrease. Today lowest is 23.45. Altisource Portfolio Return on Invested Capital is relatively stable at the moment. Moreover, Altisource Portfolio Investments Non Current is increasing over the last 4 years.
Share Based CompensationNet Cash Flow from Operations
 2014 0.00  0.00 
 2015 0.00  0.00 
 2016 0.00  0.00 
 2018 0.00  0.00 
 2019 (projected) 0.00  0.00 
Share Based CompensationNet Cash Flow from Operations
To conclude, our analysis show that Altisource Portfolio Almost mirrors market. The enterprise is overvalued and projects probability of distress below average for the next 2 years. Our ongoing buy-hold-sell recommendation on the enterprise is Hold.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
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.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com