U.S. Markets open in 1 hr 33 mins
  • S&P Futures

    4,140.00
    -15.50 (-0.37%)
     
  • Dow Futures

    33,833.00
    -125.00 (-0.37%)
     
  • Nasdaq Futures

    13,860.25
    -37.00 (-0.27%)
     
  • Russell 2000 Futures

    2,214.20
    -15.10 (-0.68%)
     
  • Crude Oil

    63.55
    +0.17 (+0.27%)
     
  • Gold

    1,774.80
    +4.20 (+0.24%)
     
  • Silver

    26.01
    +0.18 (+0.69%)
     
  • EUR/USD

    1.2063
    +0.0022 (+0.1809%)
     
  • 10-Yr Bond

    1.6010
    0.0000 (0.00%)
     
  • Vix

    18.35
    +2.10 (+12.92%)
     
  • GBP/USD

    1.3975
    -0.0009 (-0.0657%)
     
  • USD/JPY

    108.4080
    +0.2580 (+0.2386%)
     
  • BTC-USD

    56,379.96
    +88.28 (+0.16%)
     
  • CMC Crypto 200

    1,273.78
    -25.17 (-1.94%)
     
  • FTSE 100

    6,921.53
    -78.55 (-1.12%)
     
  • Nikkei 225

    29,100.38
    -584.99 (-1.97%)
     

Altisource Portfolio Solutions' (NASDAQ:ASPS) Shareholders Are Down 54% On Their Shares

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Generally speaking long term investing is the way to go. But unfortunately, some companies simply don't succeed. For example, after five long years the Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) share price is a whole 54% lower. That is extremely sub-optimal, to say the least. And some of the more recent buyers are probably worried, too, with the stock falling 32% in the last year. There was little comfort for shareholders in the last week as the price declined a further 3.4%.

View our latest analysis for Altisource Portfolio Solutions

Altisource Portfolio Solutions wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over half a decade Altisource Portfolio Solutions reduced its trailing twelve month revenue by 13% for each year. That puts it in an unattractive cohort, to put it mildly. Arguably, the market has responded appropriately to this business performance by sending the share price down 9% (annualized) in the same time period. We don't generally like to own companies that lose money and don't grow revenues. You might be better off spending your money on a leisure activity. This looks like a really risky stock to buy, at a glance.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on Altisource Portfolio Solutions

A Different Perspective

Investors in Altisource Portfolio Solutions had a tough year, with a total loss of 32%, against a market gain of about 24%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Altisource Portfolio Solutions better, we need to consider many other factors. For instance, we've identified 1 warning sign for Altisource Portfolio Solutions that you should be aware of.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.