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Widepoint Corp. (WYY)
:WYY
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Widepoint
(NYSE MKT:WYY)
59Neutral
Positive Factors
Contract Awards
The company announced $51.2M of contract awards, which should drive revenue growth in 2025 and beyond.
Earnings
Revenue of $37.7M represented an increase of $9.4M from the year ago period, or 33.4%, and compared to our $28.9M estimate.
Negative Factors
Government Exposure
With a change in administration and ongoing government headcount reductions, the level of uncertainty for all businesses with meaningful government exposure has increased.
Revenue Composition
More than half of the company’s revenue is pass through in nature and provides no margin contribution.
Widepoint (WYY) vs. S&P 500 (SPY)
Market Cap
$27.66M
Dividend YieldN/A
Average Volume (3M)26.75K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth34.47%
EPS Growth54.37%
CountryUS
Employees240
SectorTechnology
Sector Strength64
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.07
Shares Outstanding9,801,668
10 Day Avg. Volume43,211
30 Day Avg. Volume26,748
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)4.70
P/FCF Ratio4.70
Enterprise Value/Market Cap1.17
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.70
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside63.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Widepoint Business Overview & Revenue Model
Company DescriptionWidePoint Corporation (WYY) is a leading provider of technology-based products and services, specializing in identity management, telecommunications lifecycle management, and cybersecurity solutions. The company primarily serves government entities, healthcare providers, and commercial enterprises, offering a range of services designed to enhance security, operational efficiency, and compliance.
How the Company Makes MoneyWidePoint generates revenue through its diverse service offerings, including managed mobility services, identity and access management, and secure communications solutions. The company earns money by providing subscription-based services and professional consulting, primarily to federal government agencies under multi-year contracts. WidePoint also forms strategic partnerships with technology providers to enhance its service offerings and expand its client base. Key revenue streams include long-term government contracts and recurring service fees from its telecommunications lifecycle management solutions.
Widepoint Financial Statement Overview
Summary
Widepoint's financial performance shows strong revenue growth but is offset by ongoing profitability challenges and declining equity levels. Improved cash flow generation suggests potential for stabilization, but historical volatility and profitability issues remain concerns.Income Statement
Widepoint's income statement reveals mixed performance trends. The revenue growth rate from 2023 to 2024 was 34.36%, indicating strong top-line expansion. However, the company has struggled with profitability, marked by a persistent negative net profit margin (-1.36% in 2024) and declining EBIT margin. Gross profit margin improved slightly to 13.33% in 2024, showing some operational efficiency. Despite revenue growth, consistent net losses highlight significant challenges in cost management and profitability.45
Neutral
Balance Sheet
The balance sheet analysis shows moderate financial stability for Widepoint. The debt-to-equity ratio decreased slightly to 0.36 in 2024, improving leverage levels. Stockholders' equity declined, resulting in a lower equity ratio of 18.97% in 2024, suggesting increased financial risk. Positive aspects include a manageable level of total debt, but the decreasing equity levels raise concerns about long-term financial resilience.50
Neutral
Cash Flow
Widepoint's cash flow statement indicates improving cash flow metrics. Free cash flow saw a significant turnaround from negative to positive in 2024, growing by a notable margin. The operating cash flow to net income ratio suggests improving cash generation relative to reported losses. However, historical volatility in cash flows indicates potential uncertainties in sustaining positive cash flow trends.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 142.57M | 106.03M | 94.10M | 87.34M | 180.34M | Gross Profit |
| 19.00M | 15.65M | 14.58M | 16.37M | 20.46M | EBIT |
| -1.88M | -3.70M | -1.97M | 1.25M | 3.22M | EBITDA |
| -1.18M | -302.84K | -15.72M | 2.91M | 4.85M | Net Income Common Stockholders |
| -1.93M | -4.05M | -23.59M | 341.10K | 10.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.78M | 6.92M | 7.53M | 6.48M | 16.00M | Total Assets |
| 71.58M | 51.30M | 49.01M | 75.49M | 101.32M | Total Debt |
| 4.94M | 4.75M | 5.34M | 6.82M | 6.51M | Net Debt |
| -1.84M | -2.17M | -2.19M | 339.89K | -9.49M | Total Liabilities |
| 58.00M | 36.62M | 31.26M | 33.81M | 60.77M | Stockholders Equity |
| 13.58M | 14.68M | 17.75M | 41.68M | 40.55M |
| Cash Flow | Free Cash Flow | |||
| 1.56M | -464.84K | 2.66M | -3.98M | 5.23M | Operating Cash Flow |
| 1.68M | 625.25K | 6.07M | -1.22M | 6.39M | Investing Cash Flow |
| 141.19K | -620.99K | -3.41M | -7.44M | -1.16M | Financing Cash Flow |
| -894.84K | -590.15K | -1.47M | -705.70K | 3.73M |
Widepoint Technical Analysis
Positive
4.27
Price Trends
3.42
Positive
3.92
Positive
3.84
Positive
Market Momentum
0.04
Negative
74.11
Negative
92.84
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 4.27 is above the 20-day moving average (MA) of 3.05, above the 50-day MA of 3.42, and above the 200-day MA of 3.84, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 74.11 is Negative, neither overbought nor oversold. The STOCH value of 92.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WYY.
Widepoint Risk Analysis
Widepoint disclosed 39 risk factors in its most recent earnings report. Widepoint 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
Widepoint Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $43.22M | 13.48 | 19.32% | ― | -0.37% | ― | |
65 Neutral | $24.97M | 49.09 | 2.53% | ― | 1.65% | 31.84% | |
59 Neutral | $10.65B | 10.45 | -6.56% | 3.01% | 7.31% | -12.18% | |
59 Neutral | $27.66M | ― | -13.69% | ― | 34.47% | 54.37% | |
46 Neutral | $28.09M | ― | -1.97% | ― | 5.81% | 55.03% | |
38 Underperform | $14.05M | ― | ― | ― | ― |
* Technology Sector Average
Performance Comparison
WYY
Widepoint
4.27
2.19
105.29%
USIO
Usio
1.63
0.17
11.64%
CLPS
Clps
0.98
0.06
6.52%
DTST
Data Storage
3.52
-1.55
-30.57%
TDTH
Trident Digital Tech Holdings Ltd Unsponsored ADR
0.24
-3.74
-93.97%
Widepoint Earnings Call Summary
Earnings Call Date:Apr 16, 2025
(Q4-2024)
| % Change Since: 62.36%|
Next Earnings Date:May 19, 2025
Earnings Call Sentiment Positive
WidePoint demonstrated strong growth in revenue and contract acquisition while achieving significant milestones like FedRAMP authorization. Despite a net loss and some operational delays, the company's advancements in new products and consistent cash flow highlight positive momentum.Q4-2024 Updates
Positive Updates
Record Revenue Growth
WidePoint reported $142.6 million in revenue for 2024, a 35% increase compared to 2023. This exceeded their revenue guidance and highlighted the company's strong financial performance.
New Contract Secured
Secured $51.2 million in total contract value, with $45.6 million awarded by federal agencies and $5.6 million from commercial organizations.
FedRAMP Authorized Status
Achieved FedRAMP authorized status for their Intelligent Technology Management System, marking a major milestone in security and innovation.
Consistent Positive Cash Flow
Reported their 30th consecutive quarter of positive adjusted EBITDA and fifth consecutive quarter of being free cash flow positive.
Launch of New Solutions
Launched MobileAnchor and M365 Analyzer solutions, which have already secured contracts with federal defense and civilian agencies.
Negative Updates
Net Loss
Reported a net loss for the year of $1.9 million, although this was an improvement over the previous year's loss of $4 million.
Delay in Earnings Call
Experienced a delay in their earnings call due to increased business complexity, causing the annual audit fieldwork to take longer than planned.
Lower Gross Margin
Gross profit margin decreased to 13% from 15% the previous year, due to increased carrier services.
Company Guidance
In WidePoint's fourth quarter and full year 2024 earnings call, the company reported a significant revenue increase, achieving approximately $142.6 million, a 35% rise from 2023, surpassing their revenue guidance. They also exceeded their adjusted EBITDA and free cash flow targets, with $2.6 million in adjusted EBITDA and $2.5 million in free cash flow, marking the 30th consecutive quarter of positive adjusted EBITDA and the fifth consecutive quarter of positive free cash flow. WidePoint secured $51.2 million in total contract value, including $45.6 million from federal agencies and $5.6 million from commercial organizations. The company's contract backlog stood at approximately $290 million at the end of 2024, not including a recent $25 million task order from the US Navy Spiral 4 contract. Additionally, WidePoint achieved FedRAMP authorized status for its Intelligent Technology Management System (ITMS), enhancing its market position and contract opportunities with federal agencies.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.