Summary: Lender Processing Services Inc. Jun 10
- ID: 1873047
- June 2010
- Standard & Poors
The ratings on Jacksonville, Fla.-based Lender Processing Services Inc. (LPS) reflect the company's recurring revenue base and good free cash flow, offset by a narrow and cyclical product focus and a moderately aggressive capital structure. With 2009 revenues of $2.4 billion, LPS has operations in technology, data, and analytics (TD&A), mortgage-processing and loan transaction services that include settlement and default management services. Consolidated operating margins are greater than 30%, and although TD&A accounts for only one-third of revenues, it constitutes almost half of the company's EBITDA. LPS is vulnerable to economic cycles, especially in its mortgage-origination processing business. However, the natural hedge that exists between the company's complementary loan origination and default management services mitigates risk. Competition is fragmented, and...
Companies mentioned in this report are: Lender Processing Services Inc.
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