Where Food Comes From AI Stock Analysis
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Where Food Comes From (WFCF) AI Stock Analysis
Where Food Comes From
(NASDAQ:WFCF)
WFCF earns a moderately above-average score. Its financial foundation is sound — a nearly debt-free balance sheet, consistent positive free cash flow and high cash conversion — but multi-year revenue stagnation and meaningful margin and net income erosion limit the financial performance score. Encouragingly, the most recent earnings call showed a clear inflection, with revenue growth, 380 basis points of gross margin expansion, 68% operating income growth, strong RaiseWell adoption led by the Whole Foods relationship, and expanding organic certification demand. Technicals reinforce the improving story, with the stock trading above all key moving averages on positive MACD momentum, though indicators are approaching the upper end of their range. The principal offset is valuation: a P/E near 61 with no dividend leaves little margin for error if margin pressure or tight cattle supply persists.
Where Food Comes From (WFCF) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $81.17M
- Dividend Yield
- ―
- Average Volume (3M)
- 45.99K
- Price to Earnings (P/E)
- 70.8
- Beta (1Y)
- 0.35
- Revenue Growth
- -0.66%
- EPS Growth
- -55.74%
- Country
- US
- Employees
- 90
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
Where Food Comes From Business Overview & Revenue Model
Company Description
Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company conducts on-site and desk audits to verify claims about livestock, food, other specialty crops, and agricul...
How the Company Makes Money
WFCF primarily makes money by charging customers for professional services tied to independent verification and certification programs. Key revenue streams generally include: (1) Audit and verification service fees: Fees charged for scheduling and pe...
Where Food Comes From Earnings Call Summary
The call was strongly positive, with revenue growth, expanding certification demand, successful RaiseWell adoption, organic customer gains, wider gross margins, lower or flat SG&A, significant operating-income growth, and continued share repurchases. The main challenges were tight cattle supply, record-low herd sizes and high beef prices, along with anomalous below-operating-income items.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management said that, based on the growth of its new offerings and “the belief that recovery of the cattle supply cycle is on the horizon,” it remains “bullish on the long-term prospects for our beef-related business.” RaiseWell had 347,000 head of cattle approved, with 368 cattle ranchers across 26 states, 52 backgrounders, 31 finishing locations and 4 processors, while the company’s organic certification business covered more than 1,500 organic operations and more than 1 million organic acres, including an increase of over 94 customers through the first 9 months of 2026; ranchers were capturing premiums of $100 per head for cattle third-party verified to one or more standards.
Where Food Comes From Financial Statement Overview
Summary
A blend of the Income Statement (55), Balance Sheet (80) and Cash Flow (70) scores. The balance sheet is the standout: total debt has been cut to roughly $616K for a debt-to-equity ratio of just 0.08, with about two-thirds of assets equity-funded. Cash generation is reliable and capital-light, with TTM operating cash flow of $2.07M and free cash flow of $1.85M that exceeds reported net income and rebounded sharply from the prior full year. The drag is the income statement: revenue has been flat in the $24.8M–$25.7M range since 2022, gross margin has slipped from 44.4% (2021) to 38.3% TTM, and net income has fallen from $2.96M to $1.13M. Shrinking equity and asset bases are secondary concerns, though recent operating profit trends suggest stabilization.
Income Statement
55NeutralBalance Sheet
80PositiveCash Flow
70Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.34M | 24.89M | 25.75M | 25.14M | 24.84M | 21.93M |
| Gross Profit | 9.98M | 9.51M | 10.56M | 10.52M | 10.47M | 9.74M |
| EBITDA | 2.39M | 2.88M | 3.63M | 3.70M | 3.58M | 4.42M |
| Net Income | 1.13M | 1.54M | 2.12M | 2.15M | 1.99M | 2.96M |
Balance Sheet | ||||||
| Total Assets | 14.37M | 12.90M | 15.31M | 16.29M | 18.30M | 19.78M |
| Cash, Cash Equivalents and Short-Term Investments | 4.43M | 3.20M | 2.01M | 2.64M | 4.37M | 5.41M |
| Total Debt | 616.00K | 1.44M | 2.55M | 2.80M | 3.13M | 3.55M |
| Total Liabilities | 4.99M | 3.59M | 5.37M | 5.47M | 5.82M | 6.04M |
| Stockholders Equity | 9.38M | 9.30M | 9.93M | 10.82M | 12.48M | 13.75M |
Cash Flow | ||||||
| Free Cash Flow | 1.85M | 1.45M | 2.57M | 2.67M | 2.39M | 2.81M |
| Operating Cash Flow | 2.07M | 1.61M | 2.73M | 2.82M | 2.65M | 3.02M |
| Investing Cash Flow | -219.00K | 1.68M | -159.00K | -648.00K | -267.00K | -3,000 |
| Financing Cash Flow | -2.18M | -2.10M | -3.20M | -3.90M | -3.43M | -1.98M |
Where Food Comes From Technical Analysis
Price Trends
Market Momentum
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 16.30 is above the 20-day moving average (MA) of 15.59, above the 50-day MA of 13.89, and above the 200-day MA of 12.77, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 59.90 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.
Latest Risks Added
2 New RisksWhere Food Comes From Peers Comparison
Overall Rating
- WFCF68Neutral
NXTT46Neutral
PHUN44Neutral
SURG44Neutral
YXT43Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| WFCF | 68Neutral | $84.95M | 70.81 | 12.28% | ― | -0.66% | -55.74% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| NXTT | 46Neutral | $13.71M | -0.00 | -35.97% | ― | 451.55% | -106.45% |
| PHUN | 44Neutral | $35.98M | -2.66 | -13.83% | ― | 14.63% | 11.10% |
| SURG | 44Neutral | $8.74M | -0.09 | 193.81% | ― | 83.91% | 38.02% |
| YXT | 43Neutral | $7.67M | -0.45 | -145.28% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WFCF | Where Food Comes From, Inc. | 16.30 | 4.35 | 36.40% | |
| PHUN | Phunware | 1.73 | -0.33 | -16.02% | |
| SURG | Surgepays Inc | 0.14 | -1.76 | -92.58% | |
| NXTT | Next Technology Holding Inc. | 4.48 | -1307.52 | -99.66% | |
| YXT | YXT.COM Group Holding Limited Sponsored ADR | 1.10 | -7.53 | -87.25% |
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.
Date of analysis: Nov 13, 2026