MeritValue

Where Food Comes From, Inc.

WFCFdata completeness 88%16 fiscal years on file
The thesis, from the filings

Where Food Comes From, Inc. earns about 28% on invested capital, far above its ~9% cost of capital, and has bought back 16% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $4.25 and $7.76 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$21.9M1$24.8M2$25.1M3$25.7M4$24.9M4
Net income$2.96M5$1.99M6$2.15M7$2.12M8$1.54M8
Operating cash flow$3.02M9$2.65M10$2.82M11$2.73M12$1.61M12
Capital expenditure$213,00013$89,00014$148,00015$159,00016$155,00016
Free cash flow (derived)$2.81M9$2.57M10$2.67M11$2.57M12$1.45M12
Total debt—————
Cash & equivalents$5.41M17$4.37M18$2.64M19$2.01M20$3.2M20
Diluted shares6.2M6.0M5.5M5.3M5.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$18.02
your share of equity
Profit it earned you last year
$2.97
Free cash flow it threw off
$2.81
Debt you’d be carrying
—

10 shares is a claim on $18.02 of net worth that earned you $2.97 and generated $2.81 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
28% avg · 5y
FY21 36%FY22 25%FY23 26%FY24 27%FY25 25%

It earned about 28% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−16% shares · 5y

Share count is down 16% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $4.25 and $7.76 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$7.23
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.1%
  • fcfBase$2.57M
DCF · Growth Exit 5Y
$7.76
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.1%
  • fcfBase$2.57M
Earnings Power Value
$4.25
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.12M
  • growthAssumed0.0%
Graham Number
$3.49
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.1%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $7.76
The three cases
Bear0.0%$7.73
Base0.1%$7.76
Bull5.1%$9.48

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.1%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001493152-23-005851 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-006846 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001493152-25-007682 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001493152-26-008155 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001493152-23-005851 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001493152-24-006846 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001493152-25-007682 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001493152-26-008155 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001493152-23-005851 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001493152-24-006846 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001493152-25-007682 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001493152-26-008155 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001493152-23-005851 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001493152-24-006846 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001493152-25-007682 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001493152-26-008155 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001493152-23-005851 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001493152-24-006846 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001493152-25-007682 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001493152-26-008155 (CashAndCashEquivalentsAtCarryingValue)