Where Food Comes From, Inc.

Technology
Computer Software: Prepackaged Software
www.wherefoodcomesfrom.com

Earnings Score
Moat Score

Market Cap $69.23M
PE 36
Debt $NaN
Cash $2.76M
EV $NaN
FCF $2.80M

Earnings

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Sales & Net Margins

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Earnings	$1.94M
EBIT	$2.73M
ROE	20%
ROA	16%
FCF	$2.80M
Equity	$9.45M
Growth Stability	-47%
PE	35.78
PEG	2.93
PB	7.32
P/FCF	24.74
P/S	2.68
Price/Cash	0.04
Net Margins	6%
Gross Margins	42%
Op. Margins	11%
Earnings CAGR	32%
Sales Growth YoY	1%
Sales Growth QoQ	11%
Sales CAGR	11%
FCF CAGR	21%
Equity CAGR	6%
Earnings Stability	0.57
Earnings Growth YoY	-32%

Earnings Growth QoQ	1%
Earnings CAGR 5Y	12%
Sales CAGR 5Y	6%
FCF CAGR 5Y	2%
Equity CAGR 5Y	-5%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	-3%
Equity CAGR 3Y	-14%
Market Cap	$69.23M
Revenue	$25.82M
Assets	$16.95M
Cash	$2.76M
Shares Outstanding	5.3M
Earnings Score	86%
Moat Score	92%
Working Capital	2.18M
Current Ratio	1.42
Gross Profit	$10.77M
Shares Growth 3y	-5%
Equity Growth QoQ	-2%
Equity Growth YoY	-14%

Assets & ROA

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Stockholders Equity & ROE

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Where Food Comes From Inc is a third-party food verification company. It offers food production audits and uses verification processes to ensure that claims made by food producers and processors are accurate. The company supports farmers, ranchers, vineyards, wineries, processors, retailers, distributors, trade associations and restaurants with a wide variety of value-added services provided through its family of verifiers, including IMI Global, International Certification Services, Validus Verification Services, and others. The company operates in two segments that are verification and certification and Software Sales and Related Consulting.

SEC Filings

Direct access to Where Food Comes From, Inc. (WFCF) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Where Food Comes From, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Where Food Comes From, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 32%

Stability 57%

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Where Food Comes From, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Where Food Comes From, Inc..

Years

Calculation mode

= $126M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.8M	$3.4M	$4.1M	$5M	$6.1M	$7.4M	$9M	$11M	$13M	$16M	$20M	$195M
DCF		$3.1M	$3.4M	$3.8M	$4.2M	$4.6M	$5.1M	$5.6M	$6.2M	$6.8M	$7.5M	$75M
Value	$126M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	5%	3%	-1%	4%	5%	7%	14%	8%	9%	6%
ROA	-	9%	5%	1%	7%	9%	9%	18%	15%	19%	16%
ROE	-	7%	4%	-2%	6%	9%	11%	22%	16%	20%	20%

Bad Net Margins (6.07%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.02	-	0.02	0.01	-	0.52	-	-	-	-
Debt over Equity	0	0	-	0	0	-	0.08	-	-	-	-
Growth Stability	-	-	-	-47%	100%	100%	100%	100%	100%	100%	-47%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-47%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	19%	12%	33%	15%	17%	-3%	9%	13%	1%	6%
Earnings YoY growth	-	152%	-19%	-143%	-495%	52%	35%	114%	-33%	8%	12%
Equity YoY growth	-	8%	40%	3%	11%	11%	4%	10%	-9%	-13%	-5%
FCF YoY growth	-	111%	-50%	6%	37%	218%	-21%	41%	-9%	4%	2%