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RESEARCH SOLUTIONS INC (RSSS) Stock Fundamental Analysis

USA - NASDAQ:RSSS - US7610251057 - Common Stock

3.66 USD
-0.27 (-6.87%)
Last: 9/19/2025, 8:00:02 PM
3.47 USD
-0.19 (-5.19%)
After Hours: 9/19/2025, 8:00:02 PM
Fundamental Rating

3

Taking everything into account, RSSS scores 3 out of 10 in our fundamental rating. RSSS was compared to 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. RSSS has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

3

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.
The reported operating cash flow has been mixed in the past 5 years: RSSS reported negative operating cash flow in multiple 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

With a Return On Assets value of -8.66%, RSSS is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
With a Return On Equity value of -34.87%, RSSS is not doing good in the industry: 68.60% of the companies in the same industry are doing better.
RSSS's Return On Invested Capital of 7.17% is fine compared to the rest of the industry. RSSS outperforms 63.95% 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.
RSSS has a Gross Margin of 48.20%. This is in the better half of the industry: RSSS outperforms 65.12% of its industry peers.
In the last couple of years the Gross Margin of RSSS has grown nicely.
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

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RSSS is destroying value.
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.
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 2.45 indicates that RSSS is not a great score, but indicates only limited risk for bankruptcy at the moment.
RSSS has a Altman-Z score (2.45) which is comparable to the rest of the industry.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.45
ROIC/WACC0.78
WACC9.23%
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.
RSSS has a Current ratio of 0.76. This is amonst the worse of the industry: RSSS underperforms 88.37% of its industry peers.
A Quick Ratio of 0.76 indicates that RSSS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, RSSS is doing worse than 87.21% of the companies in the same industry.
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

3

3. Growth

3.1 Past

RSSS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.33%.
EPS 1Y (TTM)-58.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.52%

3.2 Future

RSSS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 84.39% yearly.
The Revenue is expected to grow by 8.43% on average over the next years. This is quite good.
EPS Next Y81.32%
EPS Next 2Y84.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.41%
Revenue Next 2Y8.43%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

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

3

4. Valuation

4.1 Price/Earnings Ratio

RSSS is valuated quite expensively with a Price/Earnings ratio of 122.00.
RSSS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RSSS to the average of the S&P500 Index (27.38), we can say RSSS is valued expensively.
The Price/Forward Earnings ratio is 67.28, which means the current valuation is very expensive for 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 22.86.
Industry RankSector Rank
PE 122
Fwd PE 67.28
RSSS Price Earnings VS Forward Price EarningsRSSS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as RSSS.
Based on the Price/Free Cash Flow ratio, RSSS is valued a bit cheaper than the industry average as 73.26% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 17.73
EV/EBITDA 38.14
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RSSS's earnings are expected to grow with 84.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.5
PEG (5Y)N/A
EPS Next 2Y84.39%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

No dividends for RSSS!.
Industry RankSector Rank
Dividend Yield N/A

RESEARCH SOLUTIONS INC

NASDAQ:RSSS (9/19/2025, 8:00:02 PM)

After market: 3.47 -0.19 (-5.19%)

3.66

-0.27 (-6.87%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)09-18 2025-09-18/amc
Earnings (Next)11-12 2025-11-12
Inst Owners51.07%
Inst Owner Change5.27%
Ins Owners15.07%
Ins Owner Change-0.4%
Market Cap118.80M
Analysts82.22
Price Target5.22 (42.62%)
Short Float %0.05%
Short Ratio0.23
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)9.45%
PT rev (3m)9.45%
EPS NQ rev (1m)2102.1%
EPS NQ rev (3m)2102.1%
EPS NY rev (1m)88.9%
EPS NY rev (3m)80.02%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.33%
Valuation
Industry RankSector Rank
PE 122
Fwd PE 67.28
P/S 2.44
P/FCF 17.73
P/OCF 17.66
P/B 10.58
P/tB N/A
EV/EBITDA 38.14
EPS(TTM)0.03
EY0.82%
EPS(NY)0.05
Fwd EY1.49%
FCF(TTM)0.21
FCFY5.64%
OCF(TTM)0.21
OCFY5.66%
SpS1.5
BVpS0.35
TBVpS-0.47
PEG (NY)1.5
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 2.45
F-Score7
WACC9.23%
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)-58.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y81.32%
EPS Next 2Y84.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.52%
Revenue Next Year6.41%
Revenue Next 2Y8.43%
Revenue Next 3YN/A
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%