Hilton Food (HFG) AI Stock Analysis

• Market Cap: £576.25M
• Dividend Yield: 7.05%
• Average Volume (3M): 491.35K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.46
• Revenue Growth: 8.58%
• EPS Growth: -15.81%
• Country: UK
• Employees: 7,856
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.26
• Shares Outstanding: 89,905,470
• 10 Day Avg. Volume: 259,872
• 30 Day Avg. Volume: 491,350
• PEG Ratio: 2.83
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 16.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £776.25
• Price Target Upside: 56.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 555.00p ▲(11.78% Upside)

Hilton Food's overall score reflects its strong valuation and solid financial performance, tempered by bearish technical indicators and operational challenges. The company's strategic initiatives and insider confidence provide a positive outlook, despite current market pressures.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Hilton Food's products and effective market strategies, supporting long-term expansion.

International Expansion

Successful international expansion diversifies revenue streams and reduces dependency on domestic markets, enhancing resilience.

Cash Flow Generation

Robust cash flow generation provides financial flexibility for investments and debt management, supporting sustainable growth.

Negative Factors

Supply Chain Disruptions

Persistent supply chain disruptions can erode margins and affect the company's ability to meet demand efficiently.

Regulatory Challenges

Regulatory hurdles can limit market access and increase compliance costs, potentially hindering growth and profitability.

Rising Operational Costs

Increasing operational costs can pressure profit margins, affecting the company's ability to maintain competitive pricing.

Hilton Food Business Overview & Revenue Model

Company Description

Hilton Food Group (HFG) is a leading international food business specializing in the processing and supply of meat and other food products. Operating primarily in the UK and Europe, the company partners with major retailers to provide tailored solutions in meat production, including beef, pork, lamb, and poultry, alongside ready meals and other convenience foods. HFG focuses on quality, innovation, and sustainability in its operations, leveraging advanced technology and supply chain efficiencies to meet customer demands.

How the Company Makes Money

Hilton Food Group generates revenue primarily through long-term contracts with major supermarket chains, which involve the supply of fresh and processed meat products. These contracts often include commitments to deliver a specific volume of products, ensuring a steady stream of income. Additionally, the company earns money from its partnerships with various food retailers, providing customized products that cater to specific market needs. Key revenue streams include the sale of meat products, value-added products like ready meals, and further innovations in food processing. Strategic partnerships with leading retailers enhance HFG's market presence and stability, while investments in technology and sustainability initiatives contribute to operational efficiency and cost management, further supporting its profitability.

Hilton Food Financial Statement Overview

Summary

Hilton Food demonstrates solid financial performance with steady revenue growth and strong cash flow generation. However, the low net profit margin and reliance on external financing suggest areas for improvement.

Income Statement

Hilton Food has demonstrated steady revenue growth over the years, with a moderate increase in gross profit margins. The EBIT and EBITDA margins are stable, suggesting effective cost management. However, the net profit margin remains relatively low, indicating potential pressures on bottom-line profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage, though there is room for improvement. The return on equity is increasing, reflecting better utilization of shareholder funds. However, the equity ratio suggests reliance on external financing, which may pose risks if not managed properly.

Cash Flow

Hilton Food's cash flow statement highlights strong operating cash flow, which exceeds net income, indicating efficient cash generation. The free cash flow has shown significant growth, enhancing financial flexibility. The company has effectively managed capital expenditures, supporting positive free cash flow trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.14B	3.99B	3.99B	3.85B	3.30B	2.77B
Gross Profit	422.75M	456.90M	430.35M	295.05M	295.13M	260.79M
EBITDA	166.88M	178.70M	163.59M	140.86M	131.34M	123.01M
Net Income	38.98M	39.30M	36.38M	17.71M	37.14M	39.74M
Balance Sheet
Total Assets	1.28B	1.24B	1.29B	1.30B	1.17B	1.06B
Cash, Cash Equivalents and Short-Term Investments	92.20M	112.00M	126.70M	87.22M	140.17M	123.82M
Total Debt	491.00M	449.30M	493.29M	544.95M	468.13M	491.23M
Total Liabilities	961.20M	919.60M	967.77M	990.47M	859.48M	833.35M
Stockholders Equity	310.30M	306.60M	310.31M	294.36M	301.40M	215.38M
Cash Flow
Free Cash Flow	-19.17M	49.90M	107.32M	3.93M	30.92M	443.00K
Operating Cash Flow	61.05M	124.50M	166.93M	60.69M	88.29M	95.95M
Investing Cash Flow	-76.33M	-62.30M	-54.80M	-139.06M	-98.81M	-91.08M
Financing Cash Flow	14.10M	-72.60M	-71.35M	24.82M	27.81M	9.90M

Hilton Food Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 496.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HFG, the sentiment is Negative. The current price of 496.5 is above the 20-day moving average (MA) of 494.95, below the 50-day MA of 586.21, and below the 200-day MA of 753.34, indicating a neutral trend. The MACD of -24.86 indicates Negative momentum. The RSI at 31.59 is Neutral, neither overbought nor oversold. The STOCH value of 27.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HFG.

Hilton Food Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWK	78 Outperform	£2.72B	18.40	15.07%	2.00%	6.96%	28.47%
PFD	76 Outperform	£1.56B	12.65	9.47%	1.60%	0.50%	20.52%
HFG	71 Outperform	£576.25M	14.72	12.72%	7.05%	8.58%	-15.81%
GNC	67 Neutral	£1.01B	19.20	12.23%	0.81%	7.74%	30.09%
TATE	65 Neutral	£1.67B	26.66	2.48%	5.50%	26.84%	-81.73%
BAKK	64 Neutral	£1.27B	34.00	5.88%	2.59%	0.59%	-41.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Hilton Food Corporate Events

Hilton Food Group’s Deputy Secretary Acquires Shares, Signaling Confidence

Hilton Food Group PLC announced that Rachel Lawrence, the Deputy Company Secretary and a person discharging managerial responsibilities (PDMR), purchased ordinary shares in the company through a dividend reinvestment plan. This transaction, conducted in accordance with the UK Market Abuse Regulation, reflects internal confidence in the company’s financial prospects and could potentially influence stakeholder perceptions positively.

Hilton Food Group Announces CEO Departure and Leadership Transition

Hilton Food Group PLC announced the immediate departure of Steve Murrells as CEO, with Mark Allen stepping in as Executive Chair to provide leadership during the search for a new CEO. Despite challenging trading conditions, the company remains in a strong financial position and maintains its financial year expectations.

Hilton Foods Reports Resilient Q3 Amid Inflation Challenges

Hilton Food Group PLC reported a resilient trading performance in the third quarter of 2025, despite facing a highly inflationary pricing environment. The company noted solid volumes in red meat and convenience categories, although underlying demand is affected by inflation pressures. The UK seafood division faces challenges due to high raw material costs and cautious consumer spending, while the Foppen smoked salmon business in Europe deals with operational disruptions related to US regulatory restrictions. The company’s net debt is expected to rise slightly by year-end, but strategic investments in new Canadian facilities and a Saudi Arabian joint venture are on track. The board anticipates a pre-tax profit of £72m to £75m for the financial year, with a cautious outlook for 2026 due to ongoing inflation and disruptions. A business review aimed at optimizing operations is nearing completion, with updates expected in January 2026.

Hilton Food CFO Exercises Share Options, Retains Shares

Hilton Food Group PLC announced that its Chief Financial Officer, Matt Osborne, has exercised share options under the company’s Long Term Incentive Plan, acquiring 2,304 ordinary shares at no cost. Osborne has opted to personally cover the tax liabilities associated with this transaction and has retained all the shares. This move reflects confidence in the company’s future prospects and may positively influence stakeholder perception.

Hilton Food CEO Increases Shareholding with Recent Purchase

Hilton Food Group PLC announced that Steve Murrells, the Group Chief Executive Officer, purchased 12,049 ordinary shares at a price of £6.59 each on 30 September 2025. This transaction, conducted in accordance with the UK Market Abuse Regulation, increases Murrells’ total shareholding to 63,100 shares, indicating confidence in the company’s future prospects and potentially impacting stakeholder perceptions positively.

Hilton Foods Sells Fairfax Meadow to Sysco GB for Strategic Realignment

Hilton Food Group has sold Fairfax Meadow Europe Limited to Sysco GB Ltd for £54 million, as part of its strategy to focus on core strengths. The sale includes a three-year supply agreement, ensuring continued supply of high-quality meat products. This move aligns with Hilton’s strategic priorities and aims to reinforce its platform for sustained growth. Sysco GB views the acquisition as a strategic fit to enhance its meat category leadership in the UK, complementing its existing foodservice offerings.