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Where Food Comes From (WFCF) AI Stock Analysis
Where Food Comes From
(NASDAQ:WFCF)
The company's strong financial foundation, particularly its debt-free balance sheet and solid cash generation, is the primary support for the score. Positive operational developments and strategic growth initiatives discussed in the earnings call further bolster the outlook. However, the stock's high valuation and weak technical momentum are significant detractors, capping the overall score.
Where Food Comes From (WFCF) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $80.72M
- Dividend Yield
- ―
- Average Volume (3M)
- 45.54K
- Price to Earnings (P/E)
- 57.9
- Beta (1Y)
- 0.30
- Revenue Growth
- -2.23%
- EPS Growth
- -28.33%
- 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 conveyed a generally positive operational picture: revenue growth (modest), notable improvements in gross profit, margins and operating income, strong cash generation and continued shareholder returns via buybacks. Management highlighted meaningful product diversification (RaiseWell, CARE, sustainability audits) and renewed strategic flex through a shelf registration for M&A. Offsetting these positives were a notable decline in reported net income driven by noncash digital asset valuation swings and the loss of a prior-year dividend, ongoing headwinds in the core beef business (about 50% of revenue) and limited participation in some high-risk food-safety segments. On balance, the company’s operational momentum, diversification, cash generation and shareholder-return actions outweigh the transitory and structural negatives.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management did not give formal forward‑looking revenue or EPS guidance on the call; instead they provided strategic guidance and near‑term actions: re‑engaging in M&A after a roughly three‑year pause with a focus on transactions that are immediately or near‑term accretive and filing a shelf registration “in the next day or so” to increase deal flexibility (the stock traded over $20 twice this year), continuing aggressive share repurchases (≈65,000 shares repurchased in Q2 and nearly 89,500 YTD, with >$17.2M returned to shareholders since 2019) funded by strong cash generation ($1.5M cash from operations YTD and $3.4M cash at quarter end), and operational priorities to expand RaiseWell beyond beef (currently >270,000 head enrolled and beef ≈50% of revenue), grow their >50‑standard verification portfolio, and pursue service bundling to drive further revenue and margin improvement (Q2 revenue $6.6M; verification revenue $5.4M vs $5.3M LY; gross profit $2.7M, +9% YoY; gross margin 40.6% vs 37.5% LY; Q2 operating income $665K, +21% YoY; Q2 net income $413K, $0.08/share; 6‑month revenue $12.0M; verification revenue YTD $9.8M; YTD operating income $963K; YTD net income $505K, $0.10/share).
Where Food Comes From Financial Statement Overview
Summary
The balance sheet is a standout with minimal debt (D/E 0.08) and strong equity. Revenue growth of 19.6% is robust, and cash flow generation remains healthy (FCF conversion 78%). However, margin compression and declining operating cash flow trends temper the overall financial picture.
Income Statement
68PositiveBalance Sheet
85Very PositiveCash Flow
70Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.03M | 24.89M | 25.75M | 25.14M | 24.84M | 21.93M |
| Gross Profit | 9.58M | 9.51M | 10.56M | 10.52M | 10.47M | 9.74M |
| EBITDA | 2.83M | 2.88M | 3.63M | 3.70M | 3.58M | 4.42M |
| Net Income | 1.45M | 1.54M | 2.12M | 2.15M | 1.99M | 2.96M |
Balance Sheet | ||||||
| Total Assets | 13.58M | 12.90M | 15.31M | 16.29M | 18.30M | 19.78M |
| Cash, Cash Equivalents and Short-Term Investments | 3.42M | 3.20M | 2.01M | 2.64M | 4.37M | 5.41M |
| Total Debt | 729.00K | 1.44M | 2.55M | 2.80M | 3.13M | 3.55M |
| Total Liabilities | 4.76M | 3.59M | 5.37M | 5.47M | 5.82M | 6.04M |
| Stockholders Equity | 8.82M | 9.30M | 9.93M | 10.82M | 12.48M | 13.75M |
Cash Flow | ||||||
| Free Cash Flow | 1.01M | 1.45M | 2.57M | 2.67M | 2.39M | 2.81M |
| Operating Cash Flow | 1.25M | 1.61M | 2.73M | 2.82M | 2.65M | 3.02M |
| Investing Cash Flow | 1.59M | 1.68M | -159.00K | -648.00K | -267.00K | -3,000 |
| Financing Cash Flow | -2.63M | -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 16.21 is above the 20-day moving average (MA) of 14.44, above the 50-day MA of 13.36, and above the 200-day MA of 12.53, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 67.22 is Neutral, neither overbought nor oversold. The STOCH value of 92.98 is Negative, 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
0 New RisksWhere Food Comes From Peers Comparison
Overall Rating
- WFCF63Neutral
SURG47Neutral
YXT47Neutral
NXTT46Neutral
PHUN46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| WFCF | 63Neutral | $80.72M | 57.85 | 15.39% | ― | -2.23% | -28.33% |
| SURG | 47Neutral | $8.71M | -0.11 | 193.81% | ― | 83.91% | 38.02% |
| YXT | 47Neutral | $9.58M | -0.59 | -145.28% | ― | ― | ― |
| NXTT | 46Neutral | $7.81M | -0.00 | -60.08% | ― | 617.83% | -107.08% |
| PHUN | 46Neutral | $38.27M | -2.88 | -13.83% | ― | 14.63% | 11.10% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WFCF | Where Food Comes From, Inc. | 16.21 | 3.67 | 29.27% | |
| PHUN | Phunware | 1.87 | -0.58 | -23.67% | |
| SURG | Surgepays Inc | 0.16 | -2.42 | -93.64% | |
| NXTT | Next Technology Holding Inc. | 5.30 | -1650.70 | -99.68% | |
| YXT | YXT.COM Group Holding Limited Sponsored ADR | 1.45 | -8.65 | -85.64% |
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: Oct 02, 2026