RESEARCH SOLUTIONS INC (RSSS) Stock Fundamental Analysis
USA - NASDAQ:RSSS - US7610251057 - Common Stock
3.14 USD
+0.04 (+1.29%)
RSSS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. RSSS has an average financial health and profitability rating. RSSS has a decent growth rate and is not valued too expensively.
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.
In multiple years RSSS reported negative net income over the last 5 years.
Of the past 5 years RSSS 4 years had a positive operating cash flow.
1.2 Ratios
RSSS has a Return On Assets (2.74%) which is in line with its industry peers.
The Return On Equity of RSSS (9.09%) is better than 64.71% of its industry peers.
The Return On Invested Capital of RSSS (8.81%) is better than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.74% | ||
| ROE | 9.09% | ||
| ROIC | 8.81% |
ROA(3y)-1.23%
ROA(5y)-3%
ROE(3y)-5.17%
ROE(5y)-10.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RSSS has a Profit Margin (2.58%) which is in line with its industry peers.
The Operating Margin of RSSS (4.69%) is comparable to the rest of the industry.
RSSS's Gross Margin of 49.32% is fine compared to the rest of the industry. RSSS outperforms 65.88% of its industry peers.
RSSS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.69% | ||
| PM (TTM) | 2.58% | ||
| GM | 49.32% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.55%
GM growth 5Y9.71%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RSSS is still creating some value.
Compared to 1 year ago, RSSS has more shares outstanding
The number of shares outstanding for RSSS has been increased compared to 5 years ago.
RSSS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.22 indicates that RSSS is not a great score, but indicates only limited risk for bankruptcy at the moment.
RSSS's Altman-Z score of 2.22 is in line compared to the rest of the industry. RSSS outperforms 44.71% 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 | 2.22 |
ROIC/WACC1
WACC8.79%
2.3 Liquidity
A Current Ratio of 0.78 indicates that RSSS may have some problems paying its short term obligations.
RSSS has a Current ratio of 0.78. This is amonst the worse of the industry: RSSS underperforms 87.06% of its industry peers.
RSSS has a Quick Ratio of 0.78. 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 worse Quick ratio (0.78) than 85.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
RSSS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -100.00%.
The Revenue has grown by 9.94% in the past year. This is quite good.
The Revenue has been growing by 9.57% on average over the past years. This is quite good.
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)9.94%
Revenue growth 3Y14.21%
Revenue growth 5Y9.57%
Sales Q2Q%2.51%
3.2 Future
Based on estimates for the next years, RSSS will show a very strong growth in Earnings Per Share. The EPS will grow by 23321464686.72% on average per year.
RSSS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.10% yearly.
EPS Next Y4312024425557499400%
EPS Next 2Y23321464686.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.8%
Revenue Next 2Y6.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Forward Earnings ratio of 20.99, RSSS is valued on the expensive side.
RSSS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.35. RSSS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.99 |
4.2 Price Multiples
RSSS's Enterprise Value to EBITDA ratio is in line with the industry average.
RSSS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RSSS is cheaper than 75.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.71 | ||
| EV/EBITDA | 25.26 |
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 23321464686.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23321464686.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RSSS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RSSS (11/5/2025, 8:00:02 PM)
3.14
+0.04 (+1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners50.59%
Inst Owner Change-0.05%
Ins Owners15.07%
Ins Owner Change1.65%
Market Cap103.05M
Revenue(TTM)49.06M
Net Income(TTM)1.27M
Analysts82.22
Price Target5.44 (73.25%)
Short Float %0.08%
Short Ratio0.18
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)0
Avg EPS beat(2)-24.24%
Min EPS beat(2)-46.52%
Max EPS beat(2)-1.96%
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)-3.19%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.11%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)-0.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)5
Avg Revenue beat(12)0.22%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)4.23%
PT rev (3m)14.08%
EPS NQ rev (1m)24.97%
EPS NQ rev (3m)399.7%
EPS NY rev (1m)57.15%
EPS NY rev (3m)214.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.99 | ||
| P/S | 2.1 | ||
| P/FCF | 14.71 | ||
| P/OCF | 14.67 | ||
| P/B | 7.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.26 |
EPS(TTM)0
EYN/A
EPS(NY)0.15
Fwd EY4.76%
FCF(TTM)0.21
FCFY6.8%
OCF(TTM)0.21
OCFY6.81%
SpS1.49
BVpS0.42
TBVpS-0.37
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.74% | ||
| ROE | 9.09% | ||
| ROCE | 11.15% | ||
| ROIC | 8.81% | ||
| ROICexc | 21.66% | ||
| ROICexgc | N/A | ||
| OM | 4.69% | ||
| PM (TTM) | 2.58% | ||
| GM | 49.32% | ||
| FCFM | 14.28% |
ROA(3y)-1.23%
ROA(5y)-3%
ROE(3y)-5.17%
ROE(5y)-10.85%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y10.55%
GM growth 5Y9.71%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1.55% | ||
| Cap/Sales | 0.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 198.17% | ||
| Profit Quality | 553.41% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.22 |
F-Score7
WACC8.79%
ROIC/WACC1
Cap/Depr(3y)36.7%
Cap/Depr(5y)102.02%
Cap/Sales(3y)0.11%
Cap/Sales(5y)0.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y4312024425557499400%
EPS Next 2Y23321464686.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.94%
Revenue growth 3Y14.21%
Revenue growth 5Y9.57%
Sales Q2Q%2.51%
Revenue Next Year3.8%
Revenue Next 2Y6.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y407.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year147.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y101.3%
FCF growth 3YN/A
FCF growth 5Y23.68%
OCF growth 1Y97.78%
OCF growth 3YN/A
OCF growth 5Y23.75%
RESEARCH SOLUTIONS INC / RSSS FAQ
What is the fundamental rating for RSSS stock?
ChartMill assigns a fundamental rating of 4 / 10 to RSSS.
What is the valuation status of RESEARCH SOLUTIONS INC (RSSS) stock?
ChartMill assigns a valuation rating of 4 / 10 to RESEARCH SOLUTIONS INC (RSSS). This can be considered as Fairly Valued.
Can you provide the profitability details for RESEARCH SOLUTIONS INC?
RESEARCH SOLUTIONS INC (RSSS) has a profitability rating of 4 / 10.