asps weiss

ALTISOURCE PORTFOLIO SOLTNSASPSNASDAQ:

March 29, 2015

BUY HOLD SELL

HOLDHOLDHOLDHOLDHOLDRATING SINCE 11/14/2014

A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F

Annual Dividend RateNA

Annual Dividend YieldNA

BetaNA

Market Capitalization$282.5 Million

52-Week Range$12.28-$126.84

Price as of 3/26/2015$14.03

Sector: Financial Services Sub-Industry: Real Estate Services Source: S&P

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracyor makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.

PAGE 1Report Date: March 29, 2015

ASPS BUSINESS DESCRIPTIONAltisource Portfolio Solutions S.A. operates as a

marketplace and transaction solutions provider for

the real estate, mortgage, and consumer debt

industries in the United States.

STOCK PERFORMANCE (%)

3 Mo. 1 Yr. 3 Yr (Ann)

Price Change -58.00 -87.75 -39.62

GROWTH (%)

Last Qtr 12 Mo. 3 Yr CAGR

Revenues 14.96 40.41 36.56

Net Income -104.32 3.47 23.66

EPS -105.63 7.12 25.99

RETURN ON EQUITY (%)

ASPS Ind Avg S&P 500

Q4 2014 332.93 13.21 14.59

Q4 2013 82.94 2.06 13.97

Q4 2012 69.81 2.55 13.23

P/E COMPARISON

2.52

ASPS

30.32

Ind Avg

19.41

S&P 500

EPS ANALYSIS¹ ($)

2014

Q4

-0.0

8

Q3

1.79

Q2

2.24

Q1

1.61

2013

Q4

1.42

Q3

1.42

Q2

1.25

Q1

1.10

2012

Q4

1.20

Q3

1.08

Q2

1.13

Q1

1.02

NA = not available NM = not meaningful

1 Compustat fiscal year convention is used for all fundamentaldata items.

Weekly Price: (US$) SMA (50) SMA (100) 2 Years1 Year

2013 2014 2015

0

25

50

75

100

125

150

175

Rating History

BUY HOLD

0

10

20Volume in Millions

COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History

RECOMMENDATIONWe rate ALTISOURCE PORTFOLIO SOLTNS (ASPS) a HOLD. The primary factors that have impacted our rating

are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the

expectation of either a positive or negative performance for this stock relative to most other stocks. The

company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and

good cash flow from operations. However, as a counter to these strengths, we also find weaknesses

including unimpressive growth in net income, poor profit margins and generally higher debt management risk.

HIGHLIGHTSThe revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior,

revenues rose by 15.0%. This growth in revenue does not appear to have trickled down to the company's

bottom line, displayed by a decline in earnings per share.

The company's current return on equity greatly increased when compared to its ROE from the same quarter

one year prior. This is a signal of significant strength within the corporation. Compared to other companies in

the Real Estate Management & Development industry and the overall market, ALTISOURCE PORTFOLIO

SOLTNS's return on equity significantly exceeds that of both the industry average and the S&P 500.

The gross profit margin for ALTISOURCE PORTFOLIO SOLTNS is currently lower than what is desirable,

coming in at 29.33%. It has decreased from the same quarter the previous year. Along with this, the net profit

margin of -0.59% is significantly below that of the industry average.

The company, on the basis of change in net income from the same quarter one year ago, has significantly

underperformed when compared to that of the S&P 500 and the Real Estate Management & Development

industry. The net income has significantly decreased by 104.3% when compared to the same quarter one year

ago, falling from $35.52 million to -$1.54 million.


March 29, 2015

Sector: Financial Services Real Estate Services Source: S&P

Annual Dividend Rate

NAAnnual Dividend Yield

NABeta

NAMarket Capitalization

$282.5 Million52-Week Range

$12.28-$126.84Price as of 3/26/2015

$14.03



PEER GROUP ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*

EBITDA Margin (TTM)

Rev

enue

Gro

wth

(TTM

)

-100

%50

0%

60%0%

FAVORABLE

UNFAVORABLEIRCPIRCPIRCPIRCPIRCP

JLLJLLJLLJLLJLL

RLGYRLGYRLGYRLGYRLGY

AAMCAAMCAAMCAAMCAAMC

RMAXRMAXRMAXRMAXRMAX

KWKWKWKWKW

FSRVFSRVFSRVFSRVFSRV

MMIMMIMMIMMIMMI

CBGCBGCBGCBGCBGASPSASPSASPSASPSASPS

Companies with higher EBITDA margins and

revenue growth rates are outperforming companies

with lower EBITDA margins and revenue growth

rates. Companies for this scatter plot have a market

capitalization between $282.5 Million and $11.9

Billion. Companies with NA or NM values do not

appear.

*EBITDA – Earnings Before Interest, Taxes, Depreciation andAmortization.

REVENUE GROWTH AND EARNINGS YIELD

Earnings Yield (TTM)

Rev

enue

Gro

wth

(TTM

)

-100

%50

0%

40%0%

FAVORABLE

UNFAVORABLEIRCPIRCPIRCPIRCPIRCPJLLJLLJLLJLLJLLEJEJEJEJEJ

RLGYRLGYRLGYRLGYRLGY

AAMCAAMCAAMCAAMCAAMC

RMAXRMAXRMAXRMAXRMAX

KWKWKWKWKW

FSRVFSRVFSRVFSRVFSRV

MMIMMIMMIMMIMMI

CBGCBGCBGCBGCBG ASPSASPSASPSASPSASPS

Companies that exhibit both a high earnings yield

and high revenue growth are generally more

attractive than companies with low revenue growth

and low earnings yield. Companies for this scatter

plot have revenue growth rates between -14.8% and

485.5%. Companies with NA or NM values do not

appear.

INDUSTRY ANALYSIS

The US real estate management and development industry is comprised of companies that lease, manage,

sell, buy, rent, and appraise real estate. Some companies own and manage income generating properties

such as shopping malls, office buildings, multi-family residences, and timberland. Other companies construct,

manage, and value property for investors, tenants, owners, and brokers. Major players are Tejon Ranch

(TRC), Forest City Enterprises (FCE-B), CBG Group (CBG), St. Joe (JOE), and Jones Lang Lasalle (JLL).

The industry is cyclical and sensitive to the macroeconomic environment. It is also highly fragmented with a

large number of localized players operating with geographical focus. Customer demographics play a critical

role in driving transaction volumes, rental rates, occupancy levels, and property sales prices. Weak

economic conditions, an abundant supply of new properties, increasing home ownership, and lower interest

rates have recently caused high vacancy levels across residential, office, and industrial properties.

The US real estate market has witnessed an unprecedented fall in property prices. A slump in home sales,

increased foreclosures, and tight credit markets tested the sustainability of the industry. New home sales and

residential construction activities seem to have bottomed out, although there is still a huge inventory buildup

of for-sale and for-rent housing units to work through.

PEER GROUP: Real Estate Management & Development

Recent Market Price/ Net Sales Net Income

Ticker Price ($)Company Name Cap ($M) Earnings TTM ($M) TTM ($M)

ASPS 14.03ALTISOURCE PORTFOLIO SOLT 282 2.52 1,078.92 134.48

IRCP 31.43ALTO PALERMO SA 990 21.38 259.90 46.37

JLL 163.14JONES LANG LASALLE INC 7,314 19.17 5,429.60 386.06

EJ 5.20E-HOUSE CHINA HOLDINGS -ADR 717 14.44 847.55 53.16

RLGY 44.41REALOGY HOLDINGS CORP 6,507 46.26 5,328.00 143.00

AAMC 192.08ALTISOURCE ASSET MGMT CORP 424 9.08 423.30 59.68

RMAX 32.38RE/MAX HOLDINGS INC 382 29.44 170.98 13.44

KW 25.51KENNEDY-WILSON HOLDINGS INC 2,449 212.58 398.60 21.90

FSRV 63.41FIRSTSERVICE CORP -SVTG 2,197 54.66 2,714.27 43.32

MMI 36.60MARCUS & MILLICHAP INC 1,357 28.82 572.19 49.53

CBG 35.65CBRE GROUP INC 11,872 24.59 9,049.92 484.50

The peer group comparison is based on Major Real Estate Services companies of comparable size.


March 29, 2015




NABeta



$12.28-$126.84Price as of 3/26/2015

$14.03



COMPANY DESCRIPTIONAltisource Portfolio Solutions S.A. operates as a

marketplace and transaction solutions provider for the

real estate, mortgage, and consumer debt industries in

the United States. Its Mortgage Services segment offers

services that span the mortgage and real estate lifecycle

outsourced by loan servicers, loan originators, investors,

and other sellers of single family homes. This segment

provides asset management services; insurance services;

residential property valuation; origination management

services; and default management services. The

company's Financial Services segment offers collection

and customer relationship management services. This

segment provides asset recovery management services,

such as post-charge-off consumer debt collection; and

customer care and early stage collections, insurance call

center, and administrative support services. Its

Technology Services segment offers REALSuite of

software products consisting of REALServicing, an

enterprise residential mortgage loan servicing product;

REALResolution, a technology platform that provides

servicers with an automated default management and

home retention solution; REALTrans, an electronic

business-to-business exchange; REALRemit, an

electronic invoicing and payment system; REALDoc, an

automated document management platform;

REALAnalytics, a software platform that incorporates

econometric models and behavioral economics to assist

servicers in various aspects of servicing; and Equator's

Solutions platforms that are used separately or together

as an end-to-end solution, as well as information

technology infrastructure services. The company serves

sub-prime servicers, utility companies, commercial

banks, servicers, mortgage bankers, investors, financial

service companies, and hedge funds, as well as a

government-sponsored enterprise. Altisource Portfolio

Solutions S.A. was incorporated in 1999 and is

headquartered in Luxembourg.

ALTISOURCE PORTFOLIO SOLTNS

40, avenue Monterey

Luxembourg 2163

LUX

Phone: 352 2469 7900

http://www.altisource.com

STOCK-AT-A-GLANCEBelow is a summary of the major fundamental and technical factors we consider when determining our

overall recommendation of ASPS shares. It is provided in order to give you a deeper understanding of our

rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is

important to note, however, that these factors only tell part of the story. To gain an even more comprehensive

understanding of our stance on the stock, these factors must be assessed in combination with the stock’s

valuation. Please refer to our Valuation section on page 5 for further information.

FACTOR SCORE

Growth out of 5 stars4.0Measures the growth of both the company's income statement and

cash flow. On this factor, ASPS has a growth score better than 70% of

the stocks we rate.

weak strong

Total Return out of 5 stars0.5Measures the historical price movement of the stock. The stock

performance of this company ranks at the bottom of the companies we

cover.

weak strong

Efficiency out of 5 stars5.0Measures the strength and historic growth of a company's return on

invested capital. The company has generated more income per dollar of

capital than 90% of the companies we review.

weak strong

Price volatility out of 5 stars0.5Measures the volatility of the company's stock price historically. The

stock is more volatile than nearly all of the stocks we monitor.

weak strong

Solvency out of 5 stars1.5Measures the solvency of the company based on several ratios. The

company is more solvent than 20% of the companies we analyze.

weak strong

Income out of 5 stars0.5Measures dividend yield and payouts to shareholders. This company

pays no dividends.

weak strong

THESTREET RATINGS RESEARCH METHODOLOGY

TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both

price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to

perform against a general benchmark of the equities market and interest rates. While our model is

quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include

expected equities market returns, future interest rates, implied industry outlook and forecasted company

earnings. Objective elements include volatility of past operating revenues, financial strength, and company

cash flows.

Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown

as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of

acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings

growth; and the financial strength of the underlying company as compared to its stock's valuation as

compared to projected earnings growth; and the financial strength of the underlying company as compared

to its stock's performance. These and many more derived observations are then combined, ranked, weighted,

and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of

selecting stocks.


March 29, 2015




NABeta



$12.28-$126.84Price as of 3/26/2015

$14.03



Consensus EPS Estimates² ($)IBES consensus estimates are provided by Thomson Financial

0.33

Q1 FY15

2.94 E

2015(E)

2.51 E

2016(E)

INCOME STATEMENT

Q4 FY14 Q4 FY13

Net Sales ($mil) 255.89 222.59

EBITDA ($mil) 23.61 59.10

EBIT ($mil) 7.26 44.52

Net Income ($mil) -1.54 35.52

BALANCE SHEET

Q4 FY14 Q4 FY13

Cash & Equiv. ($mil) 161.36 130.32

Total Assets ($mil) 788.22 724.84

Total Debt ($mil) 593.40 399.49

Equity ($mil) 40.39 156.70

PROFITABILITY

Q4 FY14 Q4 FY13

Gross Profit Margin 29.33% 37.01%

EBITDA Margin 9.22% 26.55%

Operating Margin 2.84% 20.00%

Sales Turnover 1.37 1.06

Return on Assets 17.06% 17.93%

Return on Equity 332.93% 82.94%

DEBT

Q4 FY14 Q4 FY13

Current Ratio 2.15 1.89

Debt/Capital 0.94 0.72

Interest Expense 7.32 5.99

Interest Coverage 0.99 7.43

SHARE DATA

Q4 FY14 Q4 FY13

Shares outstanding (mil) 20 23

Div / share 0.00 0.00

EPS -0.08 1.42

Book value / share 1.99 6.92

Institutional Own % NA NA

Avg Daily Volume 757,703 555,794

2 Sum of quarterly figures may not match annual estimates due touse of median consensus estimates.

FINANCIAL ANALYSISALTISOURCE PORTFOLIO SOLTNS's gross profit margin for the fourth quarter of its fiscal year 2014 has

decreased when compared to the same period a year ago. Even though sales increased, the net income has

decreased, representing a decrease to the bottom line. ALTISOURCE PORTFOLIO SOLTNS has strong

liquidity. Currently, the Quick Ratio is 1.98 which shows the ability to cover short-term cash needs. The

company managed to increase its liquidity from the same period a year ago, despite already having strong

liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 74.22% from the same

quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial

difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the

next 12-months. To learn more visit www.TheStreetRatings.com.


March 29, 2015




NABeta



$12.28-$126.84Price as of 3/26/2015

$14.03



RATINGS HISTORYOur rating for ALTISOURCE PORTFOLIO SOLTNS

has not changed since 11/14/2014. As of 3/26/2015,

the stock was trading at a price of $14.03 which is

88.9% below its 52-week high of $126.84 and 14.3%

above its 52-week low of $12.28.

2 Year Chart

2013 2014

$50

$100

$150

$200

HO

LD: $

51.7

6

BU

Y: $

69.2

0

MOST RECENT RATINGS CHANGES

Date Price Action From To

11/14/14 $51.76 Downgrade Buy Hold

3/26/13 $69.20 No Change Buy Buy

Price reflects the closing price as of the date listed, if available

RATINGS DEFINITIONS &DISTRIBUTION OF THESTREET RATINGS

(as of 3/26/2015)

47.33% Buy - We believe that this stock has the

opportunity to appreciate and produce a total return of

more than 10% over the next 12 months.

29.30% Hold - We do not believe this stock offers

conclusive evidence to warrant the purchase or sale of

shares at this time and that its likelihood of positive total

return is roughly in balance with the risk of loss.

23.37% Sell - We believe that this stock is likely to

decline by more than 10% over the next 12 months, with

the risk involved too great to compensate for any

possible returns.

TheStreet Ratings14 Wall Street, 15th FloorNew York, NY 10005www.thestreet.comResearch Contact: 212-321-5381

Sales Contact: 866-321-8726

VALUATIONHOLD. ALTISOURCE PORTFOLIO SOLTNS's P/E ratio indicates a significant discount compared to an average

of 30.32 for the Real Estate Management & Development industry and a significant discount compared to the

S&P 500 average of 19.41. For additional comparison, its price-to-book ratio of 7.04 indicates a significant

premium versus the S&P 500 average of 2.74 and a significant premium versus the industry average of 2.80.

The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a

discount. The valuation analysis reveals that, ALTISOURCE PORTFOLIO SOLTNS seems to be trading at a

discount to investment alternatives within the industry.

1 2 3 4 5Price/Earningspremium discount

ASPS 2.52 Peers 30.32

• Discount. A lower P/E ratio than its peers can

signify a less expensive stock or lower growth

expectations.

• ASPS is trading at a significant discount to its

peers.

1 2 3 4 5Price/CashFlowpremium discount


• Discount. The P/CF ratio, a stock’s price divided by

the company's cash flow from operations, is useful

for comparing companies with different capital

requirements or financing structures.


peers.

1 2 3 4 5Price/Projected Earningspremium discount


• Discount. A lower price-to-projected earnings ratio

than its peers can signify a less expensive stock or

lower future growth expectations.


peers.

1 2 3 4 5Price to Earnings/Growthpremium discount

ASPS NM Peers 1.29

• Neutral. The PEG ratio is the stock’s P/E divided by

the consensus estimate of long-term earnings

growth. Faster growth can justify higher price

multiples.

• ASPS's negative PEG ratio makes this valuation

measure meaningless.

1 2 3 4 5Price/Bookpremium discount


• Premium. A higher price-to-book ratio makes a

stock less attractive to investors seeking stocks

with lower market values per dollar of equity on the

balance sheet.

• ASPS is trading at a significant premium to its

peers.

1 2 3 4 5Earnings Growthlower higher


• Lower. Elevated earnings growth rates can lead to

capital appreciation and justify higher

price-to-earnings ratios.

• However, ASPS is expected to significantly trail its

peers on the basis of its earnings growth rate.

1 2 3 4 5Price/Salespremium discount


• Discount. In the absence of P/E and P/B multiples,

the price-to-sales ratio can display the value

investors are placing on each dollar of sales.


industry on this measurement.

1 2 3 4 5Sales Growthlower higher


• Higher. A sales growth rate that exceeds the

industry implies that a company is gaining market

share.

• ASPS has a sales growth rate that significantly

exceeds its peers.

DISCLAIMER:

The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but

TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided

via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as

other third-party data providers.

TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided

for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or

other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a

qualified securities professional, before you make any investment. None of the information contained in this report constitutes,

or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a

determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of

the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the

investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at

http://www.thestreet.com/static/about/terms-of-use.html.

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