WidePoint Corporation Common Stock (WYY)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

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

I look for businesses that earn consistent profits, generate cash, and sell at a sensible price. WidePoint does not yet fit that description. It provides technology management as a service and identity management to government and enterprise customers, a sticky-sounding niche, but it is small: $68.9M market cap and 243 employees. Revenue has grown from $106.0M in FY2023 to $142.6M in FY2024 and $150.5M in FY2025. Yet it lost $4.0M in FY2023, $1.9M in FY2024, and $2.8M in FY2025. The latest quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue $38.0M and net income $66,420, or diluted EPS $0.01; fiscal Q1 2026 had net income $76,960. These tiny profits are encouraging, but a 0.17% margin is no fortress. At the 2026-10-13 close of $6.89, FairStock calculates P/E -53.00, P/B 5.79, ROE -10.44%, ROCE -0.99%, and EV/EBITDA 36.28. Positive trailing free cash flow of $4.5M and a 6.5% FCF yield are the main attractions, but Altman Z-score -0.44 and Piotroski 3/9 point to fragility. Debt/equity 0.37 is not crushing, but negative earnings leave no margin of safety. The Lynch screen finds no category because it lost money in each of the last four years. Government certifications may offer switching costs, but I see no wide moat. At 5.79 times book with negative returns, the price looks full unless profits become durable. I need evidence of sustainable positive earnings and cash generation before this becomes a true value opportunity.

In plain English: WidePoint sells technology management and secure identity services, mostly to government and business customers. Revenue has grown, but the company has lost money in recent years and only recently posted tiny profits. At the current price, it looks expensive compared with its weak profits and the value of its assets after debts, though it does produce some cash.

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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