The two contracts are valued at about $250 million over a 10 year term of service.
The first is a $20 million a year contract to provide security services at 50 USPS locations in 18 states, Puerto Rico, and Washington, D.C. The award includes a four-year base contract and three two-year options.
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The company was also awarded an approximately $5 million a year contract to operate two USPS National Law Enforcement Centers at Dulles International Airport, VA and in Ft. Worth, TX.
TheStreet Ratings team rates COMMAND SECURITY CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMMAND SECURITY CORP (MOC) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MOC has a quick ratio of 1.67, which demonstrates the ability of the company to cover short-term liquidity needs.
- COMMAND SECURITY CORP's earnings per share declined by 42.9% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, COMMAND SECURITY CORP increased its bottom line by earning $0.12 versus $0.04 in the prior year.
- The gross profit margin for COMMAND SECURITY CORP is currently extremely low, coming in at 14.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.04% trails that of the industry average.
- Net operating cash flow has significantly decreased to $1.51 million or 64.03% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: MOC Ratings Report