RESEARCH SOLUTIONS INC(NASDAQ:RSSS) stock Fundamental Analysis

Fundamental Rating

Taking everything into account, RSSS scores 3 out of 10 in our fundamental rating. RSSS was compared to 82 industry peers in the IT Services industry. The financial health of RSSS is average, but there are quite some concerns on its profitability. RSSS has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

RSSS had negative earnings in the past year.

RSSS had a positive operating cash flow in the past year.

RSSS had negative earnings in 4 of the past 5 years.

Of the past 5 years RSSS 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of RSSS (-9.48%) is worse than 69.51% of its industry peers.

Looking at the Return On Equity, with a value of -36.45%, RSSS is doing worse than 65.85% of the companies in the same industry.

With a Return On Invested Capital value of 5.21%, RSSS perfoms like the industry average, outperforming 58.54% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-9.48%
ROE	-36.45%
ROIC	5.21%

ROA(3y)-5.34%

ROA(5y)-4.44%

ROE(3y)-19.34%

ROE(5y)-15.39%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

RSSS's Operating Margin of 2.99% is in line compared to the rest of the industry. RSSS outperforms 48.78% of its industry peers.

RSSS has a Gross Margin of 47.11%. This is in the better half of the industry: RSSS outperforms 65.85% of its industry peers.

RSSS's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	2.99%
PM (TTM)	N/A
GM	47.11%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y10.75%

GM growth 5Y8.73%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

RSSS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

The number of shares outstanding for RSSS has been increased compared to 1 year ago.

The number of shares outstanding for RSSS has been increased compared to 5 years ago.

There is no outstanding debt for RSSS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 2.03 indicates that RSSS is not a great score, but indicates only limited risk for bankruptcy at the moment.

RSSS has a Altman-Z score of 2.03. This is comparable to the rest of the industry: RSSS outperforms 42.68% of its industry peers.

RSSS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	2.03

ROIC/WACC0.56

WACC9.38%

2.3 Liquidity

RSSS has a Current Ratio of 0.77. This is a bad value and indicates that RSSS is not financially healthy enough and could expect problems in meeting its short term obligations.

With a Current ratio value of 0.77, RSSS is not doing good in the industry: 82.93% of the companies in the same industry are doing better.

RSSS has a Quick Ratio of 0.77. This is a bad value and indicates that RSSS is not financially healthy enough and could expect problems in meeting its short term obligations.

RSSS has a Quick ratio of 0.77. This is amonst the worse of the industry: RSSS underperforms 82.93% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.77
Quick Ratio	0.77

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

RSSS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -693.75%.

Looking at the last year, RSSS shows a quite strong growth in Revenue. The Revenue has grown by 18.37% in the last year.

Measured over the past years, RSSS shows a quite strong growth in Revenue. The Revenue has been growing by 9.16% on average per year.

EPS 1Y (TTM)-693.75%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%400%

Revenue 1Y (TTM)18.37%

Revenue growth 3Y12%

Revenue growth 5Y9.16%

Sales Q2Q%4.5%

3.2 Future

RSSS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.03% yearly.

The Revenue is expected to grow by 9.13% on average over the next years. This is quite good.

EPS Next Y86.72%

EPS Next 2Y70.38%

EPS Next 3Y52.03%

EPS Next 5YN/A

Revenue Next Year10.91%

Revenue Next 2Y9.18%

Revenue Next 3Y9.13%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RSSS. In the last year negative earnings were reported.

Based on the Price/Forward Earnings ratio of 25.61, the valuation of RSSS can be described as expensive.

The rest of the industry has a similar Price/Forward Earnings ratio as RSSS.

RSSS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	25.61

4.2 Price Multiples

RSSS's Enterprise Value to EBITDA ratio is in line with the industry average.

81.71% of the companies in the same industry are more expensive than RSSS, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	16.58
EV/EBITDA	33.16

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

RSSS's earnings are expected to grow with 52.03% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y70.38%

EPS Next 3Y52.03%

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5. Dividend

5.1 Amount

No dividends for RSSS!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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RESEARCH SOLUTIONS INC

NASDAQ:RSSS (5/16/2025, 8:20:28 PM)

After market: 2.96 0 (0%)

2.96

+0.03 (+1.02%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustryIT Services

Earnings (Last)05-08 2025-05-08/amc

Earnings (Next)N/A N/A

Inst Owners45.81%

Inst Owner Change-0.97%

Ins Owners16.59%

Ins Owner Change-2.55%

Market Cap96.64M

Analysts82.22

Price Target5.28 (78.38%)

Short Float %0.14%

Short Ratio0.52

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)0

Avg Revenue beat(2)-1.02%

Min Revenue beat(2)-1.28%

Max Revenue beat(2)-0.76%

Revenue beat(4)1

Avg Revenue beat(4)-0.54%

Min Revenue beat(4)-1.28%

Max Revenue beat(4)0.37%

Revenue beat(8)3

Avg Revenue beat(8)0.41%

Revenue beat(12)7

Avg Revenue beat(12)1.12%

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)1.14%

PT rev (3m)1.14%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-40.01%

EPS NY rev (1m)0%

EPS NY rev (3m)-127.78%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0.3%

Revenue NY rev (1m)-1.28%

Revenue NY rev (3m)-0.78%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	25.61
P/S	2
P/FCF	16.58
P/OCF	16.52
P/B	8.69
P/tB	N/A
EV/EBITDA	33.16

EPS(TTM)-0.19

EYN/A

EPS(NY)0.12

Fwd EY3.91%

FCF(TTM)0.18

FCFY6.03%

OCF(TTM)0.18

OCFY6.05%

SpS1.48

BVpS0.34

TBVpS-0.47

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-9.48%
ROE	-36.45%
ROCE	6.6%
ROIC	5.21%
ROICexc	8.05%
ROICexgc	N/A
OM	2.99%
PM (TTM)	N/A
GM	47.11%
FCFM	12.09%

ROA(3y)-5.34%

ROA(5y)-4.44%

ROE(3y)-19.34%

ROE(5y)-15.39%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y10.75%

GM growth 5Y8.73%

F-Score7

Asset Turnover1.13

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Debt/EBITDA	0
Cap/Depr	1.7%
Cap/Sales	0.04%
Interest Coverage	250
Cash Conversion	218.1%
Profit Quality	N/A
Current Ratio	0.77
Quick Ratio	0.77
Altman-Z	2.03

F-Score7

WACC9.38%

ROIC/WACC0.56

Cap/Depr(3y)102.85%

Cap/Depr(5y)101.71%

Cap/Sales(3y)0.14%

Cap/Sales(5y)0.1%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-693.75%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%400%

EPS Next Y86.72%

EPS Next 2Y70.38%

EPS Next 3Y52.03%

EPS Next 5YN/A

Revenue 1Y (TTM)18.37%

Revenue growth 3Y12%

Revenue growth 5Y9.16%

Sales Q2Q%4.5%

Revenue Next Year10.91%

Revenue Next 2Y9.18%

Revenue Next 3Y9.13%

Revenue Next 5YN/A

EBIT growth 1Y215.8%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year936.53%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y554.85%

FCF growth 3Y23.44%

FCF growth 5Y44.1%

OCF growth 1Y535.8%

OCF growth 3Y23.83%

OCF growth 5Y43.68%

RESEARCH SOLUTIONS INC (RSSS) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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