On August 15, 2023, Cove Street Capital, LLC (Trades, Portfolio), a renowned investment firm, added to its holdings in Research Solutions Inc (RSSS, Financial), a leading provider of cloud-based SaaS research intelligence platforms. This article provides an in-depth analysis of the transaction, the profiles of both entities, and the potential implications of this move.
Details of the Transaction
The transaction saw Cove Street Capital, LLC (Trades, Portfolio) acquire an additional 77,021 shares of Research Solutions Inc at a trading price of $2.1 per share. This move increased the firm's total holdings in Research Solutions Inc to 2,434,518 shares, representing 1.59% of its portfolio. The transaction had an impact of 0.05 on the firm's portfolio and increased its holdings in Research Solutions Inc to 8.25%.
Profile of Cove Street Capital, LLC (Trades, Portfolio)
Based in El Segundo, California, Cove Street Capital, LLC (Trades, Portfolio) is a reputable investment firm with a focus on value investing. The firm's portfolio comprises 80 stocks, with top holdings in Lifecore Biomedical Inc (LFCR, Financial), Viasat Inc (VSAT, Financial), White Mountains Insurance Group Ltd (WTM, Financial), Ecovyst Inc (ECVT, Financial), and IAC Inc (IAC, Financial). The firm's equity stands at $322 million, with a significant focus on the Technology and Industrials sectors.
Overview of Research Solutions Inc
Research Solutions Inc, a US-based company, provides a cloud-based SaaS research intelligence platform. The platform enables customers to find and download digital versions of STM articles, speeding up research and development activities in life science and other research-intensive organizations. The company's market capitalization stands at $61.953 million, with a stock price of $2.1. According to GuruFocus, the company's stock is modestly undervalued, with a GF Value of 2.64.
Analysis of Research Solutions Inc's Financial Performance
Research Solutions Inc's financial performance is characterized by a GF Score of 76/100, indicating outperformance potential that is likely to be average. The company's Financial Strength is ranked 8/10, while its Profitability Rank stands at 3/10. The company's Growth Rank is 6/10, with a GF Value Rank of 7/10 and a Momentum Rank of 8/10. The company's Piotroski F-Score is 7, and its Altman Z score is 3.20.
Research Solutions Inc's Industry Position
Operating in the Software industry, Research Solutions Inc has an interest coverage rank of 16 and a ROE rank of 1596. The company's gross margin growth is 8.50%, and its operating margin growth is 27.30%. The company's revenue growth over the past three years stands at 1.00% although it also had average EBITDA decline of 7.60% per year and an average earnings decline of 6.30% per year over the same period.
Conclusion
In conclusion, Cove Street Capital, LLC (Trades, Portfolio)'s recent acquisition of additional shares in Research Solutions Inc is a strategic move that could potentially enhance the firm's portfolio performance. Despite Research Solutions Inc's current financial performance, the company's modestly undervalued status and promising GF Score suggest potential for future growth. However, investors should conduct thorough research and consider various factors before making investment decisions.
