Where Food Comes From Inc Fundamental Analysis (NASDAQ: WFCF)
Where Food Comes From Inc Fundamental Analysis (NASDAQ: WFCF)
Where Food Comes From Inc (NASDAQ: WFCF) shows weak financial fundamentals with a PE ratio of 44.48, profit margin of 5.78%, and ROE of 15.39%. The company generates $0.0B in annual revenue with weak year-over-year growth of -3.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WFCF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWFCF demonstrates superior asset utilization.
Valuation Score
ModerateWFCF shows balanced valuation metrics.
Growth Score
WeakWFCF faces weak or negative growth trends.
Financial Health Score
ExcellentWFCF maintains a strong and stable balance sheet.
Profitability Score
ModerateWFCF maintains healthy but balanced margins.
Key Financial Metrics
Is WFCF Expensive or Cheap?
P/E Ratio
WFCF trades at 44.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WFCF's PEG of -1.58 indicates potential undervaluation.
Price to Book
The market values Where Food Comes From Inc at 7.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.13 times EBITDA. This signals the market has high growth expectations.
How Well Does WFCF Make Money?
Net Profit Margin
For every $100 in sales, Where Food Comes From Inc keeps $5.78 as profit after all expenses.
Operating Margin
Core operations generate 5.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.39 in profit for every $100 of shareholder equity.
ROA
Where Food Comes From Inc generates $10.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Where Food Comes From Inc generates limited operating cash flow of $1.26M, signaling weaker underlying cash strength.
Free Cash Flow
Where Food Comes From Inc produces free cash flow of $1.01M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.20 in free cash annually.
FCF Yield
WFCF converts 1.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How WFCF Stacks Against Its Sector Peers
| Metric | WFCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.48 | 30.97 | Worse (Expensive) |
| ROE | 15.39% | 1108.00% | Weak |
| Net Margin | 5.78% | -21241.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.67 | 21.73 | Neutral |
| ROA | 10.66% | -1325740.00% (disorted) | Strong |
WFCF outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Where Food Comes From Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.30%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
32.64%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-21.61%
Industry Style: Cyclical, Value, Infrastructure
Declining