Where Food Comes From Inc. Common Stock (WFCF)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with durable advantages, honest accounting, and a price that leaves room for error. Where Food Comes From is a tiny third-party verifier of food claims, with 86 employees and fiscal year 2025, ended 2025-12-31, revenue of $24.9M and net income of $1.5M, or $0.30 diluted EPS. That was down from fiscal year 2024, ended 2024-12-31, revenue of $25.7M and net income of $2.1M, or $0.40 diluted EPS. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.6M and net income $413,000, or $0.08 diluted EPS, versus fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $562,000. The profit trend is not what I want to see. The balance sheet is a bright spot: FairStock's data show a debt-to-equity ratio of 0.08, an Altman Z-score of 11.17, and a Piotroski F-score of 8/9. But return on capital is only 6.12% by FairStock's calculation, and trailing free cash flow is just $1.0M, a 1.4% FCF yield. At the 2026-10-13 close of $14.26, the market cap was $71.9M, and FairStock calculates a P/E of 49.17, P/B of 7.84, EV/EBITDA of 24.43, and a Graham Number of $3.40. The price is far above the Graham Number. The Lynch category is slow grower, with profit growth of 2.1% a year and revenue growth of 4.4% over five years. Great businesses can be small, but this one currently lacks the growth or valuation cushion I require.

In plain English: Where Food Comes From checks whether food claims - like grass-fed or organic - are true, mainly by auditing farms and food producers. The business is profitable and carries very little debt, but sales and profits have recently slipped. At the recent price, the shares look expensive compared with those shrinking earnings and what the company owns minus what it owes.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer