Federal spending is rising, which means more opportunity for government contractors, particularly with small business. In fact, IDC estimates that federal IT spending will remain "robust" through 2020, topping $2.5b for the Department of Defense and $2.2b for civilian agencies. As federally funded projects ramp up, security firms with little to no experience in public sector work are eyeing opportunities to get on the bandwagon. But landing public contracts can be a challenge for the uninitiated; however, with a little homework and some smart decisions, they can get in and find it very valuable.
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation