One-glance verdict
Undervalued
$8.47 our estimate vs market $6.24
Wall Street consensus: $30.00 (254.3% higher than our fair-value estimate)
26% below our estimate, below the bear case
Fundamentals snapshot
WidePoint Corporation
WYY · ASE · Technology · Information Technology Services
Current price
$6.24
52-week range
$3.96 - $24.30
Market cap
$62.39M
Balance sheet
Healthy
-13.76x Concerning
Net cash $5.70M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 4.3% last year.
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -10.4% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 11.7% (peer median: 15.1%).
What this company does
WidePoint Corporation
WidePoint Corporation helps government and big companies manage their technology, like phones and computer systems, making sure everything is secure and working smoothly. Their main income comes from providing these ongoing technology management services, which means they get paid regularly for keeping things running for their clients. This is important because it shows they have a steady stream of income from their customers who rely on their services.
How the company got here
WidePoint Corporation was founded in 1991 and has grown through a series of mergers with specialized IT consulting firms. [1, 2, 5] This strategy has allowed the company to build expertise in various technology management areas. A key turning point was the appointment of Jin Kang as CEO in July 2017, who has since led the company's focus on technology-led services. [2, 3] The company has also strategically acquired other businesses, such as Soft-ex in 2014 to expand its global reach in telecom data intelligence, and Avalon Global Solutions in 2012 to bolster its communications lifecycle management services. [2] These moves have shaped WidePoint into a provider of technology management as a service (TMaaS) for government and enterprise clients. [5, 6, 11]
What it actually does
WidePoint provides "Technology Management as a Service" (TMaaS) to help organizations, particularly government agencies and large businesses, manage, secure, and analyze their technology assets. [5, 11] Think of it like a digital concierge service for a company's technology. They help clients keep track of all their communication devices and services, ensure that only authorized people can access sensitive information, and manage the complex billing that comes with these services. [7, 10] This allows businesses to streamline their operations, reduce unnecessary spending on technology, and maintain better control over their digital footprint, especially with the rise of remote workforces. [5, 10]
Telecom Lifecycle Management
This segment focuses on helping clients manage their telecommunications assets from start to finish. [7, 10] It's like keeping a detailed inventory and control system for all the phones, data plans, and satellite services a company uses. [7] WidePoint provides tools that give customers a complete view of their telecom spending and usage, helping them identify areas where they can save money. [5, 7] This is particularly important for large organizations with many employees and devices, ensuring that all communication services are accounted for and optimized. [5, 10]
Mobile and Identity Management
This part of WidePoint's business is all about security and access control. [7, 8] They offer solutions that ensure only the right people can access a company's digital resources, using methods like multi-factor authentication (which means needing more than just a password to log in). [7] This also includes securing mobile devices and corporate resources to protect against cyber threats. [4, 8] For government clients, this can involve providing secure virtual and physical access to restricted environments, and ensuring identity verification through solutions like smart cards. [1, 7]
Information Technology as a Service (ITaaS)
WidePoint also offers a broad range of IT services that go beyond just managing mobile and identity. [4, 7, 8] This includes services like cybersecurity assessments to identify vulnerabilities, cloud services to help companies move their data and applications online, and network operations to keep systems running smoothly. [7] They also provide professional IT support and can help with implementing new technologies like artificial intelligence. [7] Essentially, they act as an outsourced IT department for businesses that need comprehensive technology support. [4, 7]
What management is betting on now
WidePoint's current strategy is centered on its "Technology Management as a Service" (TMaaS) model, which integrates various solutions like mobility management, identity management, and IT services. [8, 9] Management is focused on leveraging their expertise and existing contract vehicles to secure more business, particularly within government agencies. [3, 8] They are also investing in developing new technology solutions, such as their MobileAnchor and M365 Analyzer, to enhance their offerings. [9] The company aims to achieve positive earnings per share (a company's profit divided by the number of its outstanding shares) in the near future, indicating a focus on improving profitability and financial performance. [9]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.82M
FY2024 Q4
$2.40M
FY2025 Q1
$-3.26M
FY2025 Q2
$3.08M
FY2025 Q3
$5.92M
FY2025 Q4
$-270.01K
FY2026 Q1
$-1.00M
FY2026 Q2
$-118.14K
Revenue
$38.00M
Net income
$66.42K
Diluted EPS
0.01
Operating cash flow
$-110.44K
Free cash flow
$-118.14K
Fetching…
Sources
Revenue
$40.58M
Net income
$76.96K
Diluted EPS
0.01
Operating cash flow
$-922.49K
Free cash flow
$-1.00M
Fetching…
Sources
Revenue
$42.32M
Net income
$-849.40K
Diluted EPS
-0.08
Operating cash flow
$-173.53K
Free cash flow
$-270.01K
Fetching…
Sources
Revenue
$36.13M
Net income
$-559.18K
Diluted EPS
-0.06
Operating cash flow
$5.94M
Free cash flow
$5.92M
Fetching…
Sources
Revenue
$37.88M
Net income
$-618.46K
Diluted EPS
-0.06
Operating cash flow
$3.17M
Free cash flow
$3.08M
Fetching…
Sources
Revenue
$34.22M
Net income
$-724.06K
Diluted EPS
-0.08
Operating cash flow
$-3.23M
Free cash flow
$-3.26M
Fetching…
Sources
Revenue
$37.70M
Net income
$-356.41K
Diluted EPS
-0.05
Operating cash flow
$2.43M
Free cash flow
$2.40M
Fetching…
Sources
Revenue
$34.62M
Net income
$-425.21K
Diluted EPS
-0.04
Operating cash flow
$1.88M
Free cash flow
$1.82M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.47 vs current price $6.24
Wall Street consensus is the average analyst price target: $30.00 (254.3% higher than our fair-value estimate).
Our most-likely fair value is $8.47 a share — about 35.7% above today's price of $6.24, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $5.7M - more cash than debt. Interest coverage -13.8x.
Net debt
$-5.70M
Interest coverage
-13.76x
WidePoint Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
WYY
BASELINE
WidePoint Corporation
Total debt $4.32M Interest coverage -13.76x This is the baseline the peer rows are being compared against.
Total debt $13.39M Interest coverage 25.23x This peer still has a real interest-payment cushion, while WYY does not.
Total debt $3.58M Interest coverage -8.71x Neither company has much profit cushion over interest right now.
Total debt $141.14M Interest coverage 1.26x This peer still has a real interest-payment cushion, while WYY does not.
Total debt $23.16M Interest coverage -0.13x Neither company has much profit cushion over interest right now.
Total debt $4.49M Interest coverage -0.95x Neither company has much profit cushion over interest right now.
What you should know
The case for and against WYY
2 Rewards
2 Risks
Rewards
-
Revenue grew 4.3% last year.
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -10.4% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 11.7% (peer median: 15.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
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P/B
5.23x
P/S
0.39x
EV/EBITDA
42.27x
PEG ratio
2.33x
Profitability
How much profit each dollar creates
Gross margin
14.2%
Operating margin
0.0%
Net margin
-0.8%
ROE
-10.4%
ROA
-1.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.37x
Current ratio
1.04x
Quick ratio
0.92x
Total debt
$4.32M
Total cash
$10.02M
Growth
How the business has been compounding
Revenue TTM
$157.02M
Revenue 5Y CAGR
14.6%
EPS TTM
-0.13
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$4.73M
Free CF TTM
$5.47M
FCF margin
3.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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