CARMEL, Ind. - Syra Health Corp. (NASDAQ: SYRA), a healthcare technology company, has announced a new contract with Fairfax (TSX:FFH) County, Virginia, to provide licensed nurses for 24-hour care and other temporary healthcare positions. This deal marks the company's third active government contract in Virginia, focusing on healthcare staffing through its Healthcare Workforce business unit.
The contract with Fairfax County aligns with Syra Health's objective to improve healthcare services by ensuring the availability of qualified clinical staff. Executive Chairman and President Sandeep Allam emphasized the company's commitment to enhancing healthcare by supplying top-tier clinical staffing to support the county's quality healthcare services.
Previously, Syra Health was awarded contracts by the Commonwealth of Virginia Department of Corrections in September 2023 and the state Department of General Services to provide healthcare staffing. With this latest agreement, Syra Health extends its reach, holding active contracts in 15 states nationwide, serving various government agencies, academic institutions, and healthcare organizations.
The current contract with Fairfax County is set to run until June 30, 2028, with the option for a two-year renewal. Revenue from this contract will depend on the staffing requirements and the hourly rates for the filled positions.
Syra Health specializes in tackling significant healthcare challenges, including behavioral and mental health, digital health, and population health, by offering innovative services and technology solutions.
The information regarding the new contract and Syra Health's operations is based on a press release statement.
InvestingPro Insights
As Syra Health Corp. (NASDAQ: SYRA) secures another government contract to bolster its Healthcare Workforce business unit, investors are keeping a keen eye on the company's financial health and stock performance. With the contract set to potentially contribute to the company's revenue stream until 2028, understanding Syra's current market position is crucial for stakeholders.
InvestingPro data shows a market capitalization of $40.65 million USD for Syra Health, reflecting the company's size and market value. Despite the positive news of the contract, the company's Price-to-Earnings (P/E) ratio stands at -15.91 based on the last twelve months as of Q3 2023, indicating that the company has not been profitable during this period. Additionally, Syra's Price to Book ratio is reported at -33.07, suggesting that the market values the company at less than its book value, which may raise concerns about asset valuation or future growth prospects.
From an operational perspective, Syra Health's gross profit margin was 19.98% for the same period, which provides insight into the company's ability to control costs relative to its revenue. However, an operating income margin of -43.79% indicates that the company is currently operating at a loss.
Investors should note the significant return over the last week, with the stock price total return at 175.47%, and a strong return over the last month at 201.03%. This recent performance could be indicative of market optimism or reactions to strategic developments within the company, such as the new contract with Fairfax County.
According to InvestingPro Tips, Syra Health's stock generally trades with high price volatility, which may appeal to certain investors looking for short-term opportunities but could also suggest a higher risk profile. Additionally, the company does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income streams.
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