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RESEARCH SOLUTIONS INC (RSSS) Stock Fundamental Analysis

NASDAQ:RSSS - Nasdaq - US7610251057 - Common Stock - Currency: USD

2.87  0 (0%)

Fundamental Rating

4

Taking everything into account, RSSS scores 4 out of 10 in our fundamental rating. RSSS was compared to 81 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. RSSS has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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3

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 the past 5 years RSSS reported 4 times negative net income.
RSSS had a positive operating cash flow in 4 of the past 5 years.
RSSS Yearly Net Income VS EBIT VS OCF VS FCFRSSS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2M -2M

1.2 Ratios

The Return On Assets of RSSS (-8.66%) is worse than 71.60% of its industry peers.
RSSS has a worse Return On Equity (-34.87%) than 69.14% of its industry peers.
RSSS has a better Return On Invested Capital (7.17%) than 60.49% of its industry peers.
Industry RankSector Rank
ROA -8.66%
ROE -34.87%
ROIC 7.17%
ROA(3y)-5.34%
ROA(5y)-4.44%
ROE(3y)-19.34%
ROE(5y)-15.39%
ROIC(3y)N/A
ROIC(5y)N/A
RSSS Yearly ROA, ROE, ROICRSSS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60

1.3 Margins

RSSS has a Operating Margin (3.79%) which is in line with its industry peers.
Looking at the Gross Margin, with a value of 48.20%, RSSS is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
RSSS's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 3.79%
PM (TTM) N/A
GM 48.2%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.75%
GM growth 5Y8.73%
RSSS Yearly Profit, Operating, Gross MarginsRSSS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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4

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.
Compared to 1 year ago, RSSS has more shares outstanding
RSSS has more shares outstanding than it did 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.
RSSS Yearly Shares OutstandingRSSS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
RSSS Yearly Total Debt VS Total AssetsRSSS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M

2.2 Solvency

An Altman-Z score of 1.85 indicates that RSSS is not a great score, but indicates only limited risk for bankruptcy at the moment.
RSSS has a worse Altman-Z score (1.85) than 66.67% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.85
ROIC/WACC0.78
WACC9.24%
RSSS Yearly LT Debt VS Equity VS FCFRSSS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2M 4M 6M 8M 10M

2.3 Liquidity

A Current Ratio of 0.76 indicates that RSSS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, RSSS is doing worse than 86.42% of the companies in the same industry.
RSSS has a Quick Ratio of 0.76. 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 0.76. This is amonst the worse of the industry: RSSS underperforms 85.19% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
RSSS Yearly Current Assets VS Current LiabilitesRSSS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M

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5

3. Growth

3.1 Past

The earnings per share for RSSS have decreased strongly by -693.75% in the last year.
The Revenue has grown by 14.85% in the past year. This is quite good.
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)14.85%
Revenue growth 3Y12%
Revenue growth 5Y9.16%
Sales Q2Q%4.5%

3.2 Future

The Earnings Per Share is expected to grow by 40.89% on average over the next years. This is a very strong growth
Based on estimates for the next years, RSSS will show a quite strong growth in Revenue. The Revenue will grow by 9.13% on average per year.
EPS Next Y76.09%
EPS Next 2Y54.01%
EPS Next 3Y40.89%
EPS Next 5YN/A
Revenue Next Year10.91%
Revenue Next 2Y9.18%
Revenue Next 3Y9.13%
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 stable.
RSSS Yearly Revenue VS EstimatesRSSS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 10M 20M 30M 40M 50M
RSSS Yearly EPS VS EstimatesRSSS Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 0.05 -0.05 0.1 -0.1

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4

4. Valuation

4.1 Price/Earnings Ratio

RSSS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 60.29 indicates a quite expensive valuation of RSSS.
RSSS's Price/Forward Earnings is on the same level as the industry average.
RSSS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.60.
Industry RankSector Rank
PE N/A
Fwd PE 60.29
RSSS Price Earnings VS Forward Price EarningsRSSS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RSSS is on the same level as its industry peers.
88.89% of the companies in the same industry are more expensive than RSSS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.9
EV/EBITDA 26.99
RSSS Per share dataRSSS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5

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 40.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y54.01%
EPS Next 3Y40.89%

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0

5. Dividend

5.1 Amount

RSSS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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RESEARCH SOLUTIONS INC

NASDAQ:RSSS (6/30/2025, 8:00:02 PM)

2.87

0 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)09-19 2025-09-19/amc
Inst Owners45.07%
Inst Owner Change-0.68%
Ins Owners16.54%
Ins Owner Change-0.4%
Market Cap93.16M
Analysts82.22
Price Target4.77 (66.2%)
Short Float %0.05%
Short Ratio0.31
Dividend
Industry RankSector 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)-565.43%
Min EPS beat(2)-1128.9%
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)-2.98%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-1.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)0.37%
Revenue beat(8)2
Avg Revenue beat(8)-0.58%
Revenue beat(12)6
Avg Revenue beat(12)0.49%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)-9.66%
PT rev (3m)-8.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-80.02%
EPS NY rev (1m)-79.96%
EPS NY rev (3m)-79.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.28%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 60.29
P/S 1.91
P/FCF 13.9
P/OCF 13.85
P/B 8.29
P/tB N/A
EV/EBITDA 26.99
EPS(TTM)-0.19
EYN/A
EPS(NY)0.05
Fwd EY1.66%
FCF(TTM)0.21
FCFY7.19%
OCF(TTM)0.21
OCFY7.22%
SpS1.5
BVpS0.35
TBVpS-0.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -8.66%
ROE -34.87%
ROCE 9.08%
ROIC 7.17%
ROICexc 13.92%
ROICexgc N/A
OM 3.79%
PM (TTM) N/A
GM 48.2%
FCFM 13.74%
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 Turnover1.08
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 2.04%
Cap/Sales 0.05%
Interest Coverage 250
Cash Conversion 217.89%
Profit Quality N/A
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 1.85
F-Score7
WACC9.24%
ROIC/WACC0.78
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 Y76.09%
EPS Next 2Y54.01%
EPS Next 3Y40.89%
EPS Next 5YN/A
Revenue 1Y (TTM)14.85%
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 1Y254.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year940.62%
EBIT Next 3Y144.44%
EBIT Next 5YN/A
FCF growth 1Y270.17%
FCF growth 3Y23.44%
FCF growth 5Y44.1%
OCF growth 1Y263.54%
OCF growth 3Y23.83%
OCF growth 5Y43.68%