OTCPK:WFCF

Stock Analysis Report

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Executive Summary

Where Food Comes From, Inc. provides verification and certification solutions for the agriculture, livestock, and food industries in the United States.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Where Food Comes From's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WFCF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.4%

WFCF

-1.6%

US Professional Services

2.3%

US Market


1 Year Return

-4.1%

WFCF

7.7%

US Professional Services

6.7%

US Market

Return vs Industry: WFCF underperformed the US Professional Services industry which returned 8% over the past year.

Return vs Market: WFCF underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

WFCFIndustryMarket
7 Day-9.4%-1.6%2.3%
30 Day-6.9%-0.2%1.5%
90 Day-16.0%16.2%17.8%
1 Year-4.1%-4.1%8.5%7.7%9.0%6.7%
3 Year-32.1%-32.1%47.0%42.6%36.6%27.7%
5 Year-39.6%-39.6%74.0%65.2%64.2%46.2%

Price Volatility Vs. Market

How volatile is Where Food Comes From's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Where Food Comes From undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WFCF ($1.63) is trading below our estimate of fair value ($3.77)

Significantly Below Fair Value: WFCF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WFCF is poor value based on its PE Ratio (32.5x) compared to the US Professional Services industry average (18.3x).

PE vs Market: WFCF is poor value based on its PE Ratio (32.5x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WFCF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WFCF is overvalued based on its PB Ratio (3.5x) compared to the US Professional Services industry average (2.8x).


Next Steps

Future Growth

How is Where Food Comes From forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.4%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Where Food Comes From has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Where Food Comes From performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFCF has high quality earnings.

Growing Profit Margin: WFCF's current net profit margins (6%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: WFCF's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: WFCF's earnings growth over the past year (99.8%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: WFCF earnings growth over the past year (99.8%) exceeded the Professional Services industry 9.5%.


Return on Equity

High ROE: WFCF's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Where Food Comes From's financial position?


Financial Position Analysis

Short Term Liabilities: WFCF's short term assets ($5.5M) exceed its short term liabilities ($2.9M).

Long Term Liabilities: WFCF's short term assets ($5.5M) exceed its long term liabilities ($3.5M).


Debt to Equity History and Analysis

Debt Level: WFCF is debt free.

Reducing Debt: WFCF has no debt compared to 5 years ago when its debt to equity ratio was 0.3%.

Debt Coverage: WFCF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WFCF has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Where Food Comes From current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WFCF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WFCF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WFCF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WFCF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WFCF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.2yrs

Average management tenure


CEO

John Saunders (48yo)

22.5yrs

Tenure

US$371,310

Compensation

Mr. John K. Saunders co-founded Where Food Comes From, Inc. in 1998 and has been its Executive Chairman and Chief Executive Officer since 1998. Mr. Saunders served as the President at Where Food Comes From ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD371.31K) is below average for companies of similar size in the US market ($USD620.12K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Saunders
Founder22.5yrsUS$371.31k14.11% $5.7m
Leann Saunders
Co-Founder8.5yrsUS$371.31k14.11% $5.7m
Dannette Boyd Henning
CFO & Corporate Secretary12.5yrsUS$313.51k0.54% $220.1k
Jay Pfeiffer
Vice President of Investor Relationsno datano datano data
Kathryn Britton
Senior Director of IMI Global Operations & Corporate Marketing3.58yrsno datano data

12.2yrs

Average Tenure

49yo

Average Age

Experienced Management: WFCF's management team is seasoned and experienced (12.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Saunders
Founder22.5yrsUS$371.31k14.11% $5.7m
Leann Saunders
Co-Founder8.5yrsUS$371.31k14.11% $5.7m
Adam Larson
Independent Director14.17yrsUS$8.21k0.27% $110.8k
Peter Lapaseotes
Independent Director14.17yrsUS$2.21k3.12% $1.3m
Robert Van Schoick
Independent Director14.17yrsUS$5.21k0.040% $16.3k
Tom Heinen
Independent Director7.83yrsUS$5.71k0.40% $163.0k
Graeme Rein
Independent Director4.17yrsUS$8.21kno data
Michael Smith
Independent Director4.17yrsUS$4.71k9.83% $4.0m

11.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: WFCF's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Where Food Comes From, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Where Food Comes From, Inc.
  • Ticker: WFCF
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$40.741m
  • Shares outstanding: 24.99m
  • Website: https://wherefoodcomesfrom.com

Number of Employees


Location

  • Where Food Comes From, Inc.
  • 202 6th Street
  • Suite 400
  • Castle Rock
  • Colorado
  • 80104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WFCFOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2006

Biography

Where Food Comes From, Inc. 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 farming information management solutions as 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 00:14
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.