It’s only been just over 3 months since I originally wrote about Command Center. You can check out the original write-up here.
Long story short, nothing has changed except I feel the thesis is slightly derisked after a decent Q2. Since mid-2016 the organization has been focused on right-sizing operations and the results are showing.
- The company is growing mid single digits organically
- The aqcuisition of Hancock has delivered as expected
- Margins and revenue are expanding at the individual store level
- It sounds like the bottom is in for North Dakota business activity
The company now trades at a market cap of 21.3 mil with 4.1 mil in net cash. They have bought back some stock and are looking at potential acquisitions. I estimate ttm FCF at just over 3 mil. Though the shares responded well to Q2 earnings, they are only back to where they traded in April of this year.
I believe that CCNI is a buy at this price.
Disclosure: the author is long CCNI at time of writing.