Where Food Comes From (WFCF)
NASDAQ:WFCF
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Where Food Comes From
(NASDAQ:WFCF)
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Rating:59Neutral
Price Target:
$13.50
▲(21.08% Upside)
Action:ReiteratedDate:03/21/26
Overall score is held back primarily by softened financial performance (slowing/negative growth, compressed margins, and weaker 2025 cash-flow conversion), partially offset by a strong, low-leverage balance sheet. Technicals are mixed with price above key moving averages but muted momentum, while valuation is a notable headwind due to the high P/E. Earnings-call commentary supports a mid-range score: diversification and buybacks are positives, but beef-market headwinds and recent operational disruption keep near-term risk elevated.
Positive Factors
Low, improving leverage
A materially lower debt load and debt-to-equity near 0.15 provide durable financial flexibility. That balance-sheet strength reduces bankruptcy risk, supports continued buybacks and program investment, and allows the company to fund traceability and product rollouts without relying on external financing over the next 2–6 months and beyond.
Negative Factors
Beef market herd contraction
A historic low in cattle supply has materially reduced demand for beef-related verifications and tag sales. Because beef historically represented a core portion of addressable spend, prolonged herd contraction or a slow rebuild will structurally depress a meaningful portion of recurring revenue and slow cash conversion for multiple quarters to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Low, improving leverage
A materially lower debt load and debt-to-equity near 0.15 provide durable financial flexibility. That balance-sheet strength reduces bankruptcy risk, supports continued buybacks and program investment, and allows the company to fund traceability and product rollouts without relying on external financing over the next 2–6 months and beyond.
Read all positive factors
Where Food Comes From (WFCF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.08M
Dividend YieldN/A
Average Volume (3M)3.42K
Price to Earnings (P/E)38.5
Beta (1Y)0.01
Revenue Growth-1.17%
EPS Growth43.94%
CountryUS
Employees93
SectorIndustrials
Sector Strength72
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.04
Shares Outstanding5,048,251
10 Day Avg. Volume1,853
30 Day Avg. Volume3,425
Financial Highlights & Ratios
PEG Ratio-1.54
Price to Book (P/B)6.36
Price to Sales (P/S)2.38
P/FCF Ratio40.77
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue2.59
Enterprise Value/Gross Profit6.78
Enterprise Value/Ebitda22.36
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, a...
How the Company Makes Money
WFCF primarily makes money by selling verification/certification and audit services tied to specific production and marketing claims in the food and livestock supply chain. Key revenue streams include: (1) Program and licensing/verification fees: ...
Where Food Comes From Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The call reflects a balanced tone: the company is profitable and actively diversifying its revenue base with meaningful product launches (RaiseWell) and strategic partnerships (Whole Foods, Pangea), and it is returning capital to shareholders via buybacks. However, significant industry headwinds in the beef market — a 70-year low in U.S. cattle supply, tariffs, record beef prices and a material packing-plant closure that hit Q4 revenue — have pressured beef-related verification sales and created near-term uncertainty. Management’s corrective actions (returning bonuses, expense reduction, continued diversification and ADT positioning) mitigate some concerns but do not eliminate short-term risks to the beef segment.Positive Updates
Full Year Financial Results
Total revenue of $24.9 million and net income of $1.5 million, or $0.30 per share for fiscal 2025, demonstrating profitability despite industry headwinds.
Negative Updates
Beef-Related Revenue Pressure from Herd Contraction
U.S. cattle supply is at a 70-year low, driven by drought and rising production costs, leading many ranchers to reduce investment in verifications and tags and causing pressure on beef-related verification revenue.
Read all updates
Q4-2025 Updates
Positive
Negative
Full Year Financial Results
Total revenue of $24.9 million and net income of $1.5 million, or $0.30 per share for fiscal 2025, demonstrating profitability despite industry headwinds.
Read all positive updates
Company Guidance
Management's guidance balanced near-term caution with multi-year optimism: they reported 2025 revenue of $24.9 million and net income of $1.5 million ($0.30 per share) but warned that beef-related verification and tag sales remain pressured by a U.S. cattle supply at a 70‑year low and a Q4 hit from an unexpected packing-plant closure; executives returned discretionary bonuses, which will reduce SG&A compensation expense and benefit the Q1 10‑Q income statement. They said the herd contraction appears near a bottom with industry rebuilding expected over the next couple of years and anticipated accelerated growth as recovery gains momentum, plan to continue share repurchases in 2026 after buying 183,016 shares in 2025 (1,374,652 total repurchased/private purchases to date, returning $15.2 million to shareholders), and will expand non‑beef services and staged rollouts of RaiseWell (beef, then poultry, eggs, dairy, pork) alongside ADT traceability initiatives.Where Food Comes From Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.89M | 25.75M | 25.14M | 24.84M | 21.93M |
| Gross Profit | 9.51M | 10.56M | 10.52M | 10.47M | 9.74M |
| EBITDA | 2.88M | 3.63M | 3.33M | 3.53M | 4.42M |
| Net Income | 1.54M | 2.12M | 2.15M | 1.99M | 2.96M |
Balance Sheet | |||||
| Total Assets | 12.90M | 15.31M | 16.29M | 18.30M | 19.78M |
| Cash, Cash Equivalents and Short-Term Investments | 3.20M | 2.01M | 2.64M | 4.37M | 5.41M |
| Total Debt | 1.44M | 2.55M | 2.80M | 3.13M | 3.55M |
| Total Liabilities | 3.59M | 5.37M | 5.47M | 5.82M | 6.04M |
| Stockholders Equity | 9.30M | 9.93M | 10.82M | 12.48M | 13.75M |
Cash Flow | |||||
| Free Cash Flow | 1.45M | 2.57M | 2.67M | 2.39M | 2.81M |
| Operating Cash Flow | 1.61M | 2.73M | 2.82M | 2.65M | 3.02M |
| Investing Cash Flow | 1.68M | -159.00K | -648.00K | -267.00K | -3.00K |
| Financing Cash Flow | -2.10M | -3.20M | -3.90M | -3.43M | -1.98M |
Where Food Comes From Technical Analysis
Positive
11.15
Price Trends
11.98
Positive
11.95
Positive
11.96
Positive
Market Momentum
0.40
Negative
60.41
Neutral
78.25
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 11.15 is below the 20-day moving average (MA) of 12.50, below the 50-day MA of 11.98, and below the 200-day MA of 11.96, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 78.25 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 Risk Analysis
Where Food Comes From disclosed 21 risk factors in its most recent earnings report. Where Food Comes From reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Where Food Comes From Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $66.08M | 38.54 | 15.69% | ― | -1.17% | 43.94% | |
45 Neutral | $37.35M | -3.27 | -11.47% | ― | ― | ― | |
44 Neutral | $16.93M | -1.86 | -994.64% | ― | -39.75% | -89.61% | |
| ― | $153.29M | -0.91 | 74.86% | ― | 259.01% | -61.05% | |
49 Neutral | $24.23M | -2.82 | -89.60% | ― | ― | ― |
* Industrials Sector Average
WFCF
Where Food Comes From
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.