Where Food Comes From (WFCF) AI Stock Analysis

• Market Cap: $64.32M
• Dividend Yield: N/A
• Average Volume (3M): 3.42K
• Price to Earnings (P/E): 32.2
• Beta (1Y): -0.03
• Revenue Growth: -0.45%
• EPS Growth: -1.40%
• Country: US
• Employees: 93
• Sector: Industrials
• Sector Strength: 72
• Industry: Software - Application
• EPS (TTM): 0.11
• Shares Outstanding: 5,168,176
• 10 Day Avg. Volume: 1,853
• 30 Day Avg. Volume: 3,425
• PEG Ratio: 12.95
• Price to Book (P/B): 7.09
• Price to Sales (P/S): 2.73
• P/FCF Ratio: 27.39
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: 16.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $13.50 ▲(9.49% Upside)

Where Food Comes From shows strong financial performance and positive earnings call sentiment, driving a solid overall score. Technical indicators suggest some caution, and the valuation is reasonable, though not particularly compelling. The absence of corporate events and dividend yield slightly tempers the score.

Where Food Comes From Business Overview & Revenue Model

Company Description

Where Food Comes From (WFCF) is a leading provider of verification and certification services for the food supply chain, focusing on promoting transparency and sustainability in agriculture. The company operates in various sectors, including food safety, traceability, and sustainability, offering a range of products and services that help businesses demonstrate their commitment to responsible sourcing practices. WFCF's core services include the certification of sustainable farming practices, auditing for compliance with food safety standards, and providing traceability solutions that connect consumers with the origins of their food.

How the Company Makes Money

Where Food Comes From generates revenue through multiple streams, primarily by offering certification and verification services to producers, processors, and retailers in the food industry. The company charges fees for its certification programs, which include audits and inspections necessary for compliance with various industry standards. Additionally, WFCF provides traceability services that help companies track their products throughout the supply chain, further enhancing its revenue. Significant partnerships with agricultural associations, food brands, and retailers also contribute to its earnings by expanding its client base and enhancing the credibility of its services.

Where Food Comes From Financial Statement Overview

Summary

Where Food Comes From demonstrates strong financial health with robust revenue growth and effective cash flow management. The company maintains a conservative balance sheet with low leverage, though some fluctuations in margins and equity levels warrant attention.

Income Statement

The income statement shows a strong revenue growth rate of 65.7% in the TTM period, indicating robust top-line expansion. Gross profit margin is healthy at approximately 40%, though it has slightly decreased from previous years. Net profit margin is stable at around 8%, reflecting consistent profitability. However, EBIT and EBITDA margins have seen some fluctuations, suggesting potential volatility in operating efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.25, indicating conservative leverage. Return on equity is strong at 21%, showcasing effective use of shareholder funds. The equity ratio stands at 60%, reflecting a stable financial structure. However, the slight decrease in stockholders' equity over the periods could be a point of concern.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth rate of 184.1% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating good cash conversion. Free cash flow to net income ratio is close to 1, suggesting efficient cash management. However, past periods show some volatility in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.60M	25.75M	25.14M	24.84M	21.93M	20.08M
Gross Profit	10.23M	10.56M	10.52M	10.47M	9.74M	8.93M
EBITDA	3.54M	3.63M	3.33M	3.53M	3.10M	2.86M
Net Income	2.05M	2.12M	2.15M	1.99M	2.96M	1.39M
Balance Sheet
Total Assets	16.62M	15.31M	16.29M	18.30M	19.78M	19.45M
Cash, Cash Equivalents and Short-Term Investments	3.20M	2.01M	2.64M	4.37M	5.41M	4.37M
Total Debt	2.48M	2.55M	2.80M	3.13M	3.37M	4.60M
Total Liabilities	6.65M	5.37M	5.47M	5.82M	6.04M	6.98M
Stockholders Equity	9.97M	9.93M	10.82M	12.48M	13.75M	12.46M
Cash Flow
Free Cash Flow	2.54M	2.57M	2.67M	2.39M	2.81M	1.99M
Operating Cash Flow	2.67M	2.73M	2.82M	2.65M	3.02M	2.45M
Investing Cash Flow	-131.00K	-159.00K	-648.00K	-267.00K	-3.00K	-730.00K
Financing Cash Flow	-1.94M	-3.20M	-3.90M	-3.43M	-1.98M	14.00K

Where Food Comes From Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFCF, the sentiment is Negative. The current price of 12.33 is below the 20-day moving average (MA) of 12.52, below the 50-day MA of 12.81, and above the 200-day MA of 11.61, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 33.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WFCF.

Where Food Comes From Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WFCF	72 Outperform	$64.32M	32.23	20.82%	―	-0.45%	-1.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SURG	50 Neutral	$49.24M	-1.10	-210.94%	―	-67.73%	-2274.78%
YXT	45 Neutral	$61.58M	20.02	―	―	―	―
NXTT	44 Neutral	$48.12M	0.03	93.25%	―	259.01%	-61.05%
PHUN	37 Underperform	$46.03M	―	-18.69%	―	―	―

Where Food Comes From Corporate Events

Where Food Comes From, Inc. Reports Positive Q2 Earnings

The recent earnings call for Where Food Comes From, Inc. was marked by an overwhelmingly positive sentiment. The company showcased significant growth in various areas, including revenue, hardware sales, and net income, while also making strategic expansions. Despite minor setbacks in gross margin performance, the overall tone reflected a resilient business strategy adept at navigating cyclical challenges.

Where Food Comes From, Inc. Reports Steady Revenue Growth

Where Food Comes From, Inc. is a Colorado-based company specializing in third-party verification of food production practices, providing services to farmers, ranchers, and various stakeholders in the food industry. The company is known for its commitment to transparency and authenticity in food sourcing.