VIENNA, Va. - Castellum, Inc. (NYSE-American: CTM), a company delivering cybersecurity, electronic warfare, and software engineering services to the federal government, has formed a strategic alliance with Epic Systems, Inc. This partnership, announced today, is structured as a Mentor-Protégé arrangement under the Federal Acquisition Regulation, allowing the companies to collaborate on government contract bids.
The alliance capitalizes on Epic's small business status and SSI's extensive experience, spanning over four decades, to pursue a wider range of government contracts. According to Mark Fuller, President and CEO of Castellum, the collaboration will expand their reach in IT services as well as their established competencies in cybersecurity and electronic warfare.
Epic Systems, specializing in IT infrastructure projects, brings to the table its expertise in data analytics, cloud services, and DevSecOps. Its President, Nirmala Nallamala, expressed enthusiasm about the joint venture, anticipating mutual benefits from the combined strengths of both companies.
Epic Systems has a history of supporting federal agencies with IT services, including the Department of Homeland Security and the Department of Defense, among others. This strategic move with Castellum aims to leverage such experiences for future growth and opportunities in government contracting.
The announcement includes forward-looking statements about the expected advantages of the alliance, such as revenue growth and new customer acquisition. However, these projections are subject to a variety of risks and uncertainties that could affect actual outcomes.
This news is based on a press release statement and provides an overview of the strategic alliance between Castellum, Inc. and Epic Systems, Inc., without endorsing any claims or predicting future performance.
InvestingPro Insights
As Castellum, Inc. (NYSE-American: CTM) gears up for enhanced opportunities through its strategic alliance with Epic Systems, Inc., it's important to consider the company's current financial health and market performance.
According to InvestingPro data, Castellum's market capitalization stands at a modest $11.67 million USD, reflecting its status as a smaller player in the industry. Despite a challenging market environment, the company has managed to achieve a revenue growth of 7.24% over the last twelve months as of Q4 2023. This is a positive sign that could bode well for the potential upside from the new partnership.
Still, the company's financials also show signs of strain. Castellum is currently trading at a low revenue valuation multiple, with a Price / Book ratio of 0.9 as of the last twelve months ending Q4 2023, which could indicate that the stock is undervalued. This aligns with one of the InvestingPro Tips, suggesting that the company is trading at a low revenue valuation multiple.
Moreover, the company has a negative P/E ratio of -0.60, and the adjusted P/E ratio worsened to -0.94 by the end of Q4 2023, signaling that the company has not been profitable over the last twelve months.
InvestingPro Tips also highlight that Castellum operates with a significant debt burden and is rapidly burning through cash. These factors, coupled with a stock price that often moves in the opposite direction of the market, could present risks to investors. Nevertheless, the strategic alliance with Epic Systems could provide a pathway to improved financial performance and market positioning.
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