Where Food Comes From, Inc. (WFCF) | Investment Case

1. Company Snapshot

1.a. Company Description

Where Food Comes From, Inc., together with its subsidiaries, provides verification and certification solutions for the agriculture, livestock, and food industries in the United States.The company operates through Verification and Certification, and Software Sales and Related Consulting segments.It conducts on-site and desk audits to verify that claims made about livestock, crops, and other food products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education.

The company also offers sustainability programs, compliance management, and software-as-a-service; maintenance, support, and software-related consulting services; and web-hosting services, as well as sells hardware.It serves beef and pork packers, organic producers and processors, and specialty retail chains.The company was formerly known as Integrated Management Information, Inc.

and changed its name to Where Food Comes From, Inc.in December 2012.Where Food Comes From, Inc.

was founded in 1996 and is headquartered in Castle Rock, Colorado.

Show Full description

1.b. Last Insights on WFCF

Where Food Comes From, Inc.'s recent performance was negatively impacted by the beef market headwinds and avian flu, which weighed on revenues. The company's Q1 earnings fell due to these challenges, despite growth in retail labeling and upcycling. Verification and certification revenue declined to $4.2 million, down from $4.5 million in the prior year period. The company's ability to adapt to these market conditions will be crucial in driving future growth.

1.c. Company Highlights

1996 - Where Food Comes From, Inc. was founded as IMI Global, Inc. with a focus on verifying the source and authenticity of livestock.

2005 - The company launched its first cattle verification program, which allowed ranchers to track and verify the origin and movement of their cattle.

2009 - IMI Global, Inc. acquired a majority stake in Agrilogic, a company specializing in livestock data management and analytics.

2014 - The company rebranded as Where Food Comes From, Inc. to reflect its expanded focus on transparency and sustainability in the food industry.

2016 - Where Food Comes From, Inc. acquired the assets of HarvestPoint, a company specializing in farm-to-table food sourcing and verification.

2018 - The company launched its Sustainability Verified program, which helps farmers and ranchers measure and improve their environmental impact.

2020 - Where Food Comes From, Inc. partnered with the National Cattlemen's Beef Association to develop a comprehensive sustainability framework for the beef industry.

Last Price	12.75
Change Percentage	-0.16%
Open	12.75
Previous Close	12.77
Market Cap ( Millions)	66
Volume	175
Year High	13.78
Year Low	9.26
M A 50	12.6
M A 200	11.6

FCF Yield	3.21%
Dividend Yield	0.00%
ROE	27.14%
Debt / Equity	23.21%
Net Debt / EBIDTA	-72.12%
Price To Book	6.54
Price Earnings Ratio	24.95
Price To FCF	31.17
Price To sales	2.58
EV / EBITDA	19.34

2. Stable Revenue, Growing Net Income

Where Food Comes From reported total revenue of $7 million in Q3 2025, a marginal decline of $92,000 compared to the same quarter last year. The verification and certification segment saw a 1% growth to $5.6 million, driven by increased activity across its portfolio, including verifications for pork, dairy, and egg operations. Hardware sales, however, declined to $1.2 million from $1.3 million year-over-year due to lower tag volumes resulting from herd shrinkage. Despite the revenue decline, net income grew to $1.1 million or $0.22 per share, compared to $500,000 or $0.09 per share in Q3 2024, largely due to a $946,000 gain on the sale of Progressive Beef ownership and a $48,000 gain on digital assets.

Publication Date: Nov -21

                                    📋 Highlights
                                    Revenue Stability::
                                                Total revenue was $7 million, down $92,000 YoY, with verification and certification segment revenue rising 1% to $5.6 million.
Hardware Sales Decline::
                                                Hardware revenue fell to $1.2 million from $1.3 million YoY due to lower tag volumes, partly offset by demand for value-added tags.
Improved Net Income::
                                                Net income surged to $1.1 million ($0.22/share) from $500,000 ($0.09/share) YoY, driven by a $946,000 gain from Progressive Beef sale and $48,000 digital asset gain.
Strong Balance Sheet::
                                                Closed Q3 with $4.8 million cash (up from $2 million YoY), no debt, and $1.8 million in proceeds from Progressive Beef stock sale.
Market Recognition::
                                                Ranked 74th in Time Magazine’s 2026 Growth Leaders, highlighting growth in verified sourcing amid rising consumer demand for food transparency.

                                

Segment Performance

The verification and certification segment continues to be a strong performer, with a 1% growth in revenue. As John Saunders noted, "we again reported strength in a wide range of service offerings that essentially offset the continued impact that the smaller herd sizes are having on our core beef-related verification activity." The company's diverse portfolio and expanding customer base in various proteins contributed to this growth.

Valuation Metrics

With a P/E Ratio of 23.48 and an EV/EBITDA of 18.16, the market appears to be pricing in moderate growth expectations. The company's ROE of 27.14% and ROIC of 11.25% indicate a strong ability to generate returns on equity and invested capital. The current P/S Ratio of 2.43 suggests that the stock is reasonably valued relative to its revenue. The sale of Progressive Beef has strengthened the company's balance sheet, with cash and cash equivalents increasing to $4.8 million and no debt.

Growth Prospects

The company's focus on innovation and expanding its services to meet evolving customer demands positions it well for future growth. With initiatives such as new AI projects and the Upcycled certification, Where Food Comes From is poised to capitalize on the growing demand for verified sourcing and transparency in the food supply chain. Analysts' estimates for next year's revenue growth are neutral, but the company's strong track record and diversified offerings suggest potential for future growth.

3. NewsRoom

Where Food Comes From Partners with Pangea to Empower American Beef Producers Through CARE Certified Sustainable Leather

Dec -03

Source: globenewswire.com

WFCF Stock Dips as Q3 Earnings Highlight Growth Beyond Core Beef

Nov -19

Source: zacks.com

Where Food Comes From, Inc. (WFCF) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

Where Food Comes From, Inc. Reports 2025 Third Quarter Financial Results

Nov -13

Source: globenewswire.com

Where Food Comes From Schedules 2025 Third Quarter Earnings Call

Nov -11

Source: globenewswire.com

Where Food Comes From Named to TIME Magazine's “America's Growth Leaders 2026” Top 100 List

Nov -11

Source: globenewswire.com

Where Food Comes From Inc. (NASDAQ:WFCF) Sees Large Drop in Short Interest

Nov -03

Source: defenseworld.net

Where Food Comes From Q2 Earnings Rise Y/Y Despite Margin Pressures

Aug -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.74%)

6. Segments

Verification and Certification

Expected Growth: 10.2%

Growing consumer demand for transparency and trust in the food supply chain, increasing food safety concerns, and rising adoption of certification programs drive the growth of the verification and certification market.

Professional Services Segment

Expected Growth: 4.5%

Growing demand for food safety and sustainability drives the Professional Services Segment's growth, as consumers increasingly prioritize transparency and accountability in the agriculture and food industries.

7. Detailed Products

Where Food Comes From (WFCF) Certification

A third-party certification program that verifies the origin, quality, and production practices of agricultural products.

IMI Global Verification

A verification program that ensures the authenticity and integrity of agricultural products, including origin, breed, and production claims.

Farmtrace

A farm-to-table traceability platform that tracks the origin, movement, and transformation of agricultural products.

Sustainably Grown

A certification program that recognizes farms and ranches that adopt sustainable agricultural practices.

Non-GMO Project Verification

A third-party verification program that ensures products do not contain genetically modified organisms (GMOs).

8. Where Food Comes From, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Where Food Comes From, Inc. has a low threat of substitutes due to its unique farm-to-table approach and strong brand recognition, making it difficult for substitutes to enter the market.

Bargaining Power Of Customers

The bargaining power of customers is moderate, as consumers have some flexibility to choose from various food suppliers, but Where Food Comes From, Inc.'s strong brand loyalty and customer relationships mitigate this threat.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as Where Food Comes From, Inc. has a diversified supplier base and strong relationships with its farmers, reducing the risk of supplier concentration.

Threat Of New Entrants

The threat of new entrants is moderate, as the food industry has relatively low barriers to entry, but Where Food Comes From, Inc.'s established brand and strong supply chain management make it challenging for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry is high, as the food industry is highly competitive, and Where Food Comes From, Inc. faces competition from established players and new entrants, requiring continuous innovation and differentiation to maintain market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	20.56%
Debt Cost	3.95%
Equity Weight	79.44%
Equity Cost	6.76%
WACC	6.18%
Leverage	25.88%

11. Quality Control: Where Food Comes From, Inc. passed 8 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Domo

A-Score: 5.1/10

Value: 9.2

Growth: 4.9

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

MoneyLion

A-Score: 4.8/10

Value: 4.0

Growth: 6.2

Quality: 6.3

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

Where Food Comes From

A-Score: 4.7/10

Value: 2.4

Growth: 6.4

Quality: 7.2

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

Aware

A-Score: 4.4/10

Value: 7.8

Growth: 3.6

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

SurgePays

A-Score: 3.7/10

Value: 7.2

Growth: 2.9

Quality: 2.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.3

1-Year Total Return ->

PubMatic

A-Score: 3.5/10

Value: 6.3

Growth: 6.6

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.49%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.18%

Where Food Comes From, Inc. - US96327X2009

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WFCF

1.c. Company Highlights

Better Quality

Higher Growth

Fairly Valued

Weak Momentum

Stable Momentum

Average Growth

Average Quality

2. Stable Revenue, Growing Net Income

Segment Performance

Valuation Metrics

Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.74%)

6. Segments

Verification and Certification

Expected Growth: 10.2%

Professional Services Segment

Expected Growth: 4.5%

7. Detailed Products

Where Food Comes From (WFCF) Certification

IMI Global Verification

Farmtrace

Sustainably Grown

Non-GMO Project Verification

8. Where Food Comes From, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Where Food Comes From, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.75$

Current Price

12.75$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA