RESEARCH SOLUTIONS INC (RSSS) Stock Fundamental Analysis
USA - NASDAQ:RSSS - US7610251057 - Common Stock
3.27 USD
-0.08 (-2.39%)
RSSS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. Both the profitability and the financial health of RSSS get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year RSSS had a positive cash flow from operations.
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
The Return On Assets of RSSS (2.74%) is comparable to the rest of the industry.
RSSS's Return On Equity of 9.09% is fine compared to the rest of the industry. RSSS outperforms 63.95% of its industry peers.
With a decent Return On Invested Capital value of 8.81%, RSSS is doing good in the industry, outperforming 70.93% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 2.58%, RSSS is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Operating Margin, with a value of 4.69%, RSSS is in line with its industry, outperforming 53.49% of the companies in the same industry.
With a decent Gross Margin value of 49.32%, RSSS is doing good in the industry, outperforming 66.28% of the companies in the same industry.
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
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.
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
An Altman-Z score of 2.37 indicates that RSSS is not a great score, but indicates only limited risk for bankruptcy at the moment.
RSSS's Altman-Z score of 2.37 is in line compared to the rest of the industry. RSSS outperforms 43.02% 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 | 2.37 |
ROIC/WACC0.98
WACC9.01%
2.3 Liquidity
A Current Ratio of 0.78 indicates that RSSS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, RSSS is doing worse than 87.21% of the companies in the same industry.
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's Quick ratio of 0.78 is on the low side compared to the rest of the industry. RSSS is outperformed by 86.05% 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%.
Looking at the last year, RSSS shows a quite strong growth in Revenue. The Revenue has grown by 9.94% in the last year.
Measured over the past years, RSSS shows a quite strong growth in Revenue. The Revenue has been growing by 9.57% on average per year.
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 Y2743855182636404000%
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Forward Earnings ratio of 34.35, RSSS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as RSSS.
RSSS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.35 |
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.
RSSS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RSSS is cheaper than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.32 | ||
| EV/EBITDA | 27.57 |
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 (10/21/2025, 1:45:52 PM)
3.27
-0.08 (-2.39%)
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 Cap107.32M
Analysts82.22
Price Target5.44 (66.36%)
Short Float %0.07%
Short Ratio0.15
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)399.7%
EPS NQ rev (3m)399.7%
EPS NY rev (1m)75%
EPS NY rev (3m)99.98%
Revenue NQ rev (1m)-3.52%
Revenue NQ rev (3m)-4.09%
Revenue NY rev (1m)-2.46%
Revenue NY rev (3m)-3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.35 | ||
| P/S | 2.19 | ||
| P/FCF | 15.32 | ||
| P/OCF | 15.28 | ||
| P/B | 7.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.57 |
EPS(TTM)0
EYN/A
EPS(NY)0.1
Fwd EY2.91%
FCF(TTM)0.21
FCFY6.53%
OCF(TTM)0.21
OCFY6.54%
SpS1.49
BVpS0.42
TBVpS-0.37
PEG (NY)N/A
PEG (5Y)N/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
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 3Y10.55%
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 | 2.37 |
F-Score7
WACC9.01%
ROIC/WACC0.98
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 Y2743855182636404000%
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%