Where Food Comes From (WFCF) AI Stock Analysis

• Market Cap: $58.22M
• Dividend Yield: N/A
• Average Volume (3M): 5.10K
• Price to Earnings (P/E): 30.4
• Beta (1Y): -0.10
• Revenue Growth: -0.05%
• EPS Growth: -6.02%
• Country: US
• Employees: 93
• Sector: Technology
• Sector Strength: 96
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 5,212,387
• 10 Day Avg. Volume: 4,265
• 30 Day Avg. Volume: 5,099
• PEG Ratio: -3.93
• Price to Book (P/B): 6.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.27
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 12.32
• Enterprise Value/Ebitda: 18.06
• 1Y Price Target: $11.00
• Price Target Upside: -2.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $12.00 ▲(6.67%Upside)

Where Food Comes From has robust financial health and effective cash flow management, which are significant strengths. Technical analysis shows a mixed but generally positive trend, while valuation metrics suggest potential overvaluation. The earnings call and recent corporate event highlight resilience and strategic progress despite industry challenges.

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 primarily through its certification and verification services. The company charges fees for conducting audits and assessments, which verify that food producers meet specific standards and claims, such as organic, non-GMO, or animal welfare certifications. Additionally, WFCF offers consulting services to help producers improve their operations to meet these standards. Significant partnerships with retailers and food producers enhance its market presence and contribute to its earnings by increasing the demand for verified products, thereby driving more producers to seek certification services.

Where Food Comes From Financial Statement Overview

Summary

Where Food Comes From shows strong financial health with robust profitability metrics and effective cash flow management. While revenue growth is moderate, the company maintains operational efficiency and a conservative leverage position. The declining equity ratio warrants attention, but overall, the financial statements reflect a stable and well-managed company.

Income Statement

The company demonstrates a healthy gross profit margin of approximately 41% TTM, indicating strong pricing power and cost management. The net profit margin TTM is around 7.8%, which is solid but has slightly decreased over the past year. Revenue growth has been modest but steady, reflecting a competitive market environment. The EBIT and EBITDA margins are also strong, showcasing operational efficiency.

Balance Sheet

The debt-to-equity ratio is relatively low at 0.26, indicating a conservative approach to leverage. The return on equity is approximately 20.6% TTM, highlighting efficient use of equity. However, the equity ratio has been declining, indicating a decrease in equity financing in relation to total assets, which could be a potential risk if it continues.

Cash Flow

Free cash flow is growing steadily, with a robust operating cash flow to net income ratio of 1.35 TTM, showing strong cash generation from operations. The free cash flow to net income ratio is also high, suggesting the company effectively converts net income into free cash flow. This positions the company well for future investments and debt servicing.

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

Where Food Comes From Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 11.25 is above the 20-day moving average (MA) of 11.22, above the 50-day MA of 10.68, and below the 200-day MA of 11.48, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 53.40 is Neutral, neither overbought nor oversold. The STOCH value of 58.79 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
TRAK	72 Outperform	$332.63M	54.82	14.17%	0.39%	9.73%	22.33%
WFCF	70 Outperform	$58.22M	30.36	20.59%	―	-0.05%	-6.02%
INLX	68 Neutral	$58.09M	―	-10.79%	―	3.21%	-550.35%
DUOT	55 Neutral	$96.11M	―	-189.13%	―	89.27%	26.30%
Sector *	51 Neutral	AU$1.68B	2.17	-31.66%	3.55%	16.55%	-7.79%
TROO	―	$89.90M	―		―	―	―
PSQH	51 Neutral	$99.27M	―	-223.65%	―	221.24%	13.36%

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.