Research Solutions, Inc.

NasdaqCM:RSSS Stock Report

Market Cap: US$119.4m

Research Solutions Valuation

Is RSSS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RSSS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RSSS ($3.93) is trading below our estimate of fair value ($7.13)

Significantly Below Fair Value: RSSS is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RSSS?

Key metric: As RSSS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RSSS. This is calculated by dividing RSSS's market cap by their current revenue.
What is RSSS's PS Ratio?
PS Ratio2.6x
SalesUS$46.61m
Market CapUS$119.41m

Price to Sales Ratio vs Peers

How does RSSS's PS Ratio compare to its peers?

The above table shows the PS ratio for RSSS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.8x
2.6xn/aUS$145.7m
III Information Services Group
0.6x3.7%US$164.4m
EAXR Ealixir
15.2xn/aUS$76.6m
PFSW PFSweb
0.8xn/aUS$170.5m
RSSS Research Solutions
2.6x8.1%US$119.4m

Price-To-Sales vs Peers: RSSS is good value based on its Price-To-Sales Ratio (2.6x) compared to the peer average (6.1x).


Price to Sales Ratio vs Industry

How does RSSS's PS Ratio compare vs other companies in the US IT Industry?

26 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.5x1.6%US$8.02b
DXC DXC Technology
0.3x-2.0%US$3.73b
RXT Rackspace Technology
0.2x0.4%US$512.03m
UIS Unisys
0.2x3.4%US$453.63m
RSSS 2.6xIndustry Avg. 2.6xNo. of Companies26PS02.44.87.29.612+
26 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RSSS is good value based on its Price-To-Sales Ratio (2.6x) compared to the US IT industry average (2.6x).


Price to Sales Ratio vs Fair Ratio

What is RSSS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RSSS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.6x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: RSSS is expensive based on its Price-To-Sales Ratio (2.6x) compared to the estimated Fair Price-To-Sales Ratio (1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RSSS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.93
US$5.12
+30.2%
13.3%US$6.00US$4.35n/a3
Dec ’25US$3.47
US$5.12
+47.5%
13.3%US$6.00US$4.35n/a3
Nov ’25US$2.63
US$5.12
+94.9%
13.3%US$6.00US$4.35n/a3
Oct ’25US$2.71
US$5.12
+88.8%
13.3%US$6.00US$4.35n/a3
Sep ’25US$2.78
US$5.12
+84.1%
13.3%US$6.00US$4.35n/a3
Aug ’25US$2.81
US$5.12
+82.1%
13.3%US$6.00US$4.35n/a3
Jul ’25US$2.59
US$5.12
+97.6%
13.3%US$6.00US$4.35n/a3
Jun ’25US$2.61
US$5.12
+96.0%
13.3%US$6.00US$4.35n/a3
May ’25US$2.87
US$4.78
+66.7%
6.4%US$5.00US$4.35n/a3
Apr ’25US$3.06
US$4.68
+52.8%
7.0%US$5.00US$4.35n/a2
Mar ’25US$3.12
US$4.68
+49.8%
7.0%US$5.00US$4.35n/a2
Feb ’25US$2.77
US$4.68
+68.8%
7.0%US$5.00US$4.35n/a2
Jan ’25US$2.60
US$4.68
+79.8%
7.0%US$5.00US$4.35n/a2
Dec ’24US$2.40
US$4.68
+94.8%
7.0%US$5.00US$4.35US$3.472
Nov ’24US$2.35
US$4.68
+98.9%
7.0%US$5.00US$4.35US$2.632
Oct ’24US$2.50
US$4.68
+87.0%
7.0%US$5.00US$4.35US$2.712
Sep ’24US$2.28
US$4.68
+105.0%
7.0%US$5.00US$4.35US$2.782
Aug ’24US$2.17
US$4.68
+115.4%
7.0%US$5.00US$4.35US$2.812
Jul ’24US$2.04
US$4.68
+129.2%
7.0%US$5.00US$4.35US$2.592
Jun ’24US$2.07
US$4.68
+125.8%
7.0%US$5.00US$4.35US$2.612
May ’24US$2.08
US$4.68
+124.8%
7.0%US$5.00US$4.35US$2.872
Apr ’24US$2.01
US$4.68
+132.6%
7.0%US$5.00US$4.35US$3.062
Mar ’24US$2.07
US$4.68
+125.8%
7.0%US$5.00US$4.35US$3.122
Feb ’24US$2.25
US$4.68
+107.8%
7.0%US$5.00US$4.35US$2.772
Jan ’24US$1.92
US$4.68
+143.5%
7.0%US$5.00US$4.35US$2.602
Dec ’23US$2.15
US$4.68
+117.4%
7.0%US$5.00US$4.35US$2.402

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 08:01
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Research Solutions, Inc. is covered by 3 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jacob StephanLake Street Capital Markets, LLC
Allen KleeMaxim Group
Richard BaldryRoth MKM