PHH
PHH Corporation
Finance/Real Estate
04/07/2014
Presented
| Date | 04/02/2014 |
| Price | $25.13 |
| Market Cap | $1.44B |
| Ent Value | N/A |
| P/E Ratio | 16.22x |
| Book Value | $30.21 |
| Div Yield | N/A |
| Shares O/S | 57.30M |
| Ave Daily Vol | 900,000 |
| Short Int | 28.23% |
Current
| Price | $11.00 |
| Market Cap | $0.36B |
| PHH Corporation provides outsourced mortgage and fleet management services in the United States and Canada. The company operates through three segments: Mortgage Production, Mortgage Servicing, and Fleet Management Services. The Mortgage Production segment provides private-label mortgage services to financial institutions and real estate brokers; and originates, purchases, and sells mortgage loans. The Mortgage Servicing segment services mortgage loans, purchases mortgage servicing rights, and acts as sub servicer for clients that own the underlying servicing rights; collects loan payments; remits principal and interest payments to investors; manages escrow funds for the payment of mortgage-related expenses, such as taxes and insurance; and performs loss mitigation activities on behalf of investors. This segment also offers reinsurance services. The Fleet Management Services segment provides fleet management services, including vehicle leasing, fleet policy analysis and recommendations, benchmarking, vehicle recommendations, ordering and purchasing vehicles, and arranging for vehicle delivery and administration of the title and registration process, as well as tax and insurance requirements, pursuing warranty claims, and remarketing used vehicles. This segment also offers vehicle maintenance service cards to facilitate payment for repairs and maintenance; accident management services; driver safety training services, including classroom and behind the wheel training for small groups or individual drivers taught by professional driving instructors; and fuel card programs that facilitate the payment, monitoring, and control of fuel purchases to corporate clients and government agencies. PHH Corporation was founded in 1946 and is based in Mount Laurel, New Jersey. |
Highlights
The presenter is long shares of PHH Corporation (PHH), and believes the timing may actually be right for the company to split up its mortgage origination and services, and fleet management/ leasing businesses. Past efforts to influence some kind of change at PHH have fallen short. Most notable was a 2008 deal that would have split PHH and sold the fleet business to GE and the mortgage operations to Blackstone for nearly $2 billion. The deal had to be terminated when the financial crisis interfered with the financing. Outside of capital synergies, the two business segments are wholly unrelated, and could generate substantial value for shareholders if separated, in his opinion.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.