Widepoint (WYY) AI Stock Analysis

• Market Cap: $49.18M
• Dividend Yield: N/A
• Average Volume (3M): 100.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 16.25%
• EPS Growth: 41.38%
• Country: US
• Employees: 240
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): -0.06
• Shares Outstanding: 9,776,906
• 10 Day Avg. Volume: 87,445
• 30 Day Avg. Volume: 100,943
• 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: 0.62
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 1.59
• Enterprise Value/Ebitda: 34.79
• 1Y Price Target: $5.75
• Price Target Upside: 14.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $4.50 ▼(-10.54% Downside)

Widepoint's overall stock score reflects significant challenges in financial performance, particularly in profitability and cash flow management. While technical indicators show positive momentum, the negative P/E ratio and lack of dividend yield weigh on valuation. The earnings call provided some optimism with strategic initiatives and potential growth opportunities, but timing delays and net losses remain concerns.

Positive Factors

Financial Performance

As financial performance continues to improve, investors are expected to gravitate toward undervalued WYY shares.

Revenue Growth

The company announced $51.2M of contract awards, which should drive revenue growth in 2025 and beyond.

Revenue Visibility

WidePoint Corporation provides long duration contracts, extending to five years, offering strong revenue visibility.

Negative Factors

Government Contracts

With a change in administration and ongoing government headcount reductions, the level of uncertainty for all businesses with meaningful government exposure has increased.

Gross Margin

Second quarter revenue of $37.9M compared to our $39.4M estimate, with gross margin down both sequentially and year over year.

Revenue Estimates

First quarter revenue was below the estimate, impacted by a one-time out-of-period accounting adjustment.

Widepoint Business Overview & Revenue Model

Company Description

Widepoint Corporation (WYY) is a technology company that specializes in providing secure mobile communications and identity management solutions. The company operates primarily in the telecommunications and information technology sectors, offering a range of services that include mobile device management, cybersecurity solutions, and managed services for government and enterprise clients. Widepoint's core products focus on enhancing the security and efficiency of mobile communications, ensuring compliance, and optimizing the management of mobile assets.

How the Company Makes Money

Widepoint generates revenue through a combination of service contracts, software licenses, and managed service agreements. The company's primary revenue streams include fees from its mobile device management solutions, cybersecurity services, and consulting services geared towards compliance and security management. Additionally, Widepoint has established partnerships with key government agencies and commercial enterprises, which contribute significantly to its earnings. The company's ability to secure long-term contracts with government clients is a crucial factor in its revenue stability and growth.

Widepoint Financial Statement Overview

Summary

Widepoint faces challenges across its financial statements, with particular issues in profitability and cash flow management. While revenue is growing, the company struggles to convert this into profit and positive cash flow. The balance sheet shows moderate leverage but negative returns on equity, indicating inefficiencies. Overall, Widepoint needs to focus on improving profitability and cash flow to enhance its financial health.

Income Statement

Widepoint's income statement shows a modest revenue growth rate of 1.29% TTM, indicating slight improvement. However, the company is struggling with profitability as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 13.39%, suggesting limited pricing power or high cost of goods sold. Overall, the income statement reflects challenges in achieving profitability despite revenue growth.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.41, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio is not provided, but the existing data suggests a need for improved financial stability and profitability.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth, down by over 3200% TTM, highlighting cash management issues. The operating cash flow to net income ratio is low, indicating challenges in converting earnings to cash. Despite a high free cash flow to net income ratio, the overall cash flow position is weak, suggesting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	144.42M	142.57M	106.03M	94.10M	87.34M	180.34M
Gross Profit	19.34M	19.00M	15.65M	14.58M	16.37M	20.46M
EBITDA	882.12K	1.57M	-302.84K	-15.72M	2.91M	4.85M
Net Income	-2.12M	-1.93M	-4.05M	-23.59M	341.10K	10.32M
Balance Sheet
Total Assets	76.58M	71.58M	51.30M	49.01M	75.49M	101.32M
Cash, Cash Equivalents and Short-Term Investments	6.82M	6.78M	6.92M	7.53M	6.48M	16.00M
Total Debt	5.13M	4.94M	4.75M	5.34M	6.82M	6.51M
Total Liabilities	64.01M	58.00M	36.62M	31.26M	33.81M	60.77M
Stockholders Equity	12.56M	13.58M	14.68M	17.75M	41.68M	40.55M
Cash Flow
Free Cash Flow	4.04M	1.56M	-464.84K	2.66M	-3.98M	5.23M
Operating Cash Flow	4.26M	1.68M	625.25K	6.07M	-1.22M	6.39M
Investing Cash Flow	-220.82K	141.19K	-620.99K	-3.41M	-7.44M	-1.16M
Financing Cash Flow	-735.23K	-894.84K	-590.15K	-1.47M	-705.70K	3.73M

Widepoint Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WYY, the sentiment is Positive. The current price of 5.03 is above the 20-day moving average (MA) of 4.19, above the 50-day MA of 3.59, and above the 200-day MA of 3.88, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 72.35 is Negative, neither overbought nor oversold. The STOCH value of 90.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WYY.

Widepoint Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTST	63 Neutral	$32.39M	180.23	-1.42%	―	0.53%	-233.01%
USIO	61 Neutral	$37.36M	13.45	16.71%	―	4.44%	―
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
WYY	55 Neutral	$49.18M	―	-15.98%	―	16.25%	41.38%
CLPS	49 Neutral	$29.59M	―	-1.97%	―	5.81%	55.03%
CYCU	45 Neutral	$9.27M	33.15	-208.80%	―	―	-133.65%
TDTH	45 Neutral	$53.50M	―		―	―	―

Widepoint Corporate Events

WidePoint Stockholders Approve Key Proposals at Annual Meeting

On July 18, 2025, WidePoint Corporation’s stockholders approved several proposals during their annual meeting. These included the election of a Class I director, the ratification of Baker Tilly as independent accountants, an increase in authorized shares by 1.1 million, and an advisory resolution on executive compensation. The stockholders also recommended that advisory votes on executive compensation occur every three years.