Yahoo Finance Analysts Expect Breakeven For Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) Before Long
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States, India, Luxembourg, Uruguay, and internationally. The US$175m market-cap company posted a loss in its most recent financial year of US$67m and a latest trailing-twelve-month loss of US$66m shrinking the gap between loss and breakeven. As path to profitability is the topic on Altisource Portfolio Solutions' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Altisource Portfolio Solutions
Altisource Portfolio Solutions is bordering on breakeven, according to the 2 American Real Estate analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$11m in 2023. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 88%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Altisource Portfolio Solutions given that this is a high-level summary, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Altisource Portfolio Solutions currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Altisource Portfolio Solutions to cover in one brief article, but the key fundamentals for the company can all be found in one place – Altisource Portfolio Solutions' company page on Simply Wall St. We've also put together a list of relevant factors you should further research:
Valuation: What is Altisource Portfolio Solutions worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Altisource Portfolio Solutions is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Altisource Portfolio Solutions’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
