Where Food Comes From (WFCF) AI Stock Analysis

• Market Cap: $70.49M
• Dividend Yield: N/A
• Average Volume (3M): 4.16K
• Price to Earnings (P/E): 35.3
• Beta (1Y): -0.10
• 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: 3,796
• 30 Day Avg. Volume: 4,157
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: 16.30
• 1Y Price Target: $12.50
• Price Target Upside: -5.66% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $12.50 ▼(-5.66% Downside)

Where Food Comes From demonstrates strong financial health and positive earnings call sentiment, driving a solid overall score. Technical analysis and valuation present moderate risks, but the company's strategic initiatives and growth potential support a favorable outlook.

Where Food Comes From Business Overview & Revenue Model

Company Description

Where Food Comes From, Inc., together with its subsidiaries, provides verification and certification solutions for the agriculture, livestock, and food industries in the United States. The company operates through Verification and Certification, and Software Sales and Related Consulting segments. It conducts on-site and desk audits to verify that claims made about livestock, crops, and other food products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. The company also offers sustainability programs, compliance management, and software-as-a-service; maintenance, support, and software-related consulting services; and web-hosting services, as well as sells hardware. It serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is headquartered in Castle Rock, Colorado.

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

The company shows strong revenue growth and effective cash flow management, with a conservative balance sheet. However, fluctuations in margins and equity levels require 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: Positive
• Last Price: 13.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFCF, the sentiment is Positive. The current price of 13.25 is above the 20-day moving average (MA) of 12.87, above the 50-day MA of 11.93, and above the 200-day MA of 11.59, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 71.21 is Negative, neither overbought nor oversold. The STOCH value of 78.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	73 Outperform	$70.49M	35.33	20.82%	―	-0.45%	-1.40%
TRAK	70 Outperform	$309.42M	50.99	―	0.42%	9.73%	22.33%
DUOT	52 Neutral	$145.80M	-7.01	-219.87%	―	172.93%	34.97%
INLX	52 Neutral	$52.50M	-28.61	-15.06%	―	-2.63%	-1080.14%
PSQH	48 Neutral	$92.74M	-1.48	-207.96%	―	93.83%	23.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Where Food Comes From Corporate Events

Where Food Comes From Finalizes Agreement with Progressive Beef

On July 22, 2025, Where Food Comes From, Inc. finalized a Redemption and Purchase Agreement with Progressive Beef, LLC, resulting in the redemption of the company’s 10% membership interest in Progressive Beef for approximately $1.8 million in cash and the surrender of 12,585 shares of the company’s common stock. This transaction marks the end of an investment that began on August 9, 2018, when the company acquired a 10% stake in Progressive Beef for about $1.0 million, which over the years yielded over $1.6 million in dividends, reflecting Progressive Beef’s earnings distribution.