RESEARCH SOLUTIONS INC (RSSS)
US7610251057 - Common Stock
Overall RSSS gets a fundamental rating of 4 out of 10. We evaluated RSSS against 86 industry peers in the IT Services industry. RSSS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, RSSS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
RSSS had positive earnings in the past year.
In the past year RSSS had a positive cash flow from operations.
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 (-1.07%) is comparable to the rest of the industry.
RSSS's Return On Equity of -3.02% is in line compared to the rest of the industry. RSSS outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.07% | ||
| ROE | -3.02% | ||
| ROIC | N/A |
ROA(3y)-2.89%
ROA(5y)-4.47%
ROE(3y)-10.32%
ROE(5y)-15.25%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 40.48%, RSSS is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Gross Margin of RSSS has grown nicely.
The Profit Margin and Operating Margin are not available for RSSS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.48% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.9%
GM growth 5Y8.25%
2. Health
2.1 Basic Checks
RSSS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RSSS has more shares outstanding
Compared to 5 years ago, RSSS has more shares outstanding
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
RSSS has an Altman-Z score of 2.30. This is not the best score and indicates that RSSS is in the grey zone with still only limited risk for bankruptcy at the moment.
RSSS's Altman-Z score of 2.30 is in line compared to the rest of the industry. RSSS outperforms 52.38% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.3 |
ROIC/WACCN/A
WACC10.88%
2.3 Liquidity
A Current Ratio of 0.70 indicates that RSSS may have some problems paying its short term obligations.
RSSS's Current ratio of 0.70 is on the low side compared to the rest of the industry. RSSS is outperformed by 85.71% of its industry peers.
A Quick Ratio of 0.70 indicates that RSSS may have some problems paying its short term obligations.
RSSS has a worse Quick ratio (0.70) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
RSSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 233.33%, which is quite impressive.
The Revenue has grown by 17.15% in the past year. This is quite good.
RSSS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.11% yearly.
EPS 1Y (TTM)233.33%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q200%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y6.67%
Revenue growth 5Y6.11%
Revenue growth Q2Q18.28%
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 101.99% on average per year.
Based on estimates for the next years, RSSS will show a quite strong growth in Revenue. The Revenue will grow by 15.43% on average per year.
EPS Next Y180.5%
EPS Next 2Y101.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.29%
Revenue Next 2Y15.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
RSSS is valuated quite expensively with a Price/Earnings ratio of 77.00.
The rest of the industry has a similar Price/Earnings ratio as RSSS.
The average S&P500 Price/Earnings ratio is at 24.80. RSSS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 37.75, which means the current valuation is very expensive for RSSS.
RSSS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.27. RSSS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77 | ||
| Fwd PE | 37.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RSSS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.39 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RSSS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RSSS's earnings are expected to grow with 101.99% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y101.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RSSS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RESEARCH SOLUTIONS INC
NASDAQ:RSSS (4/18/2024, 7:18:23 PM)
After market: 3.11 +0.03 (+0.97%)3.08
+0.02 (+0.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap100.47M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77 | ||
| Fwd PE | 37.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.07% | ||
| ROE | -3.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)233.33%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y180.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.15%
Revenue growth 3Y6.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y