A toy log cabin sits on $20 bills.
Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Luxembourg-based Altisource Portfolio Solutions S.A. provides real estate mortgage portfolio management and related technology products, as well as asset recovery and customer relationship management services. It serves government agencies, lenders, servicers, investors, mortgage bankers, credit unions, financial services companies and hedge funds across the U.S. It has a market cap of $550-million (U.S.).
Altisource has grown EPS at a 33-per-cent clip over the long term (using avg of 3, 4, & 5 yr EPS growth rates), part of why it gets strong interest from Peter Lynch model. It has grown sales at a 38-per cent pace over long-term, (using an average of the 3-, 4-, and 5-year sales growth rates). The Lynch model also likes its 0.21 P/E-to-growth ratio.
The company has a solid 28.9-per-cent return on retained earnings (those not paid out as dividends) over the past decade, which the Warren Buffett-based model likes.
It has increased EPS in each year of past half decade, helping it earn strong interest from the James O'Shaughnessy growth approach. The O'Shaughnessy model also likes its combination of a solid 12-mo. relative strength (92) and low price/sales ratio (0.52).
Altisource has a 92-per-cent return on equity (12 month) and it trades for a just 6.2 times trailing 12-mo. EPS.
John Reese is long ASPS.
Click here for a complete breakdown of Validea's investing guru report.
Globe app users click here.
Read other research reports here.