HF Foods Group (HFFG) AI Stock Analysis

• Market Cap: $97.07M
• Dividend Yield: N/A
• Average Volume (3M): 84.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 4.10%
• EPS Growth: -2241.30%
• Country: US
• Employees: 1,015
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.05
• Shares Outstanding: 53,043,830
• 10 Day Avg. Volume: 111,903
• 30 Day Avg. Volume: 84,223
• PEG Ratio: 0.14
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 17.35
• Enterprise Value/Market Cap: 3.22
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 9.13
• 1Y Price Target: $6.00
• Price Target Upside: 131.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.34
• Revenue Forecast (FY): $1.27B

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-22.78% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held back primarily by persistent GAAP losses and weakening cash-flow momentum, alongside a technically weak downtrend. The earnings call was moderately supportive due to improving adjusted results and operational milestones, but valuation remains challenged with negative earnings and no dividend support.

Positive Factors

Improving adjusted profitability

Sustained gains in adjusted EBITDA and adjusted net income indicate operational improvements and better cost control that can persist beyond a single quarter. Stronger adjusted cash earnings improve the company's ability to fund capex, support M&A, and invest in distribution capabilities, enhancing long-term earnings durability if converted to GAAP profit.

ERP implementation and IT remediation

A completed ERP rollout and remediated IT controls are durable enablers of improved procurement, inventory accuracy, and margin analysis. These structural upgrades reduce operational friction, lower error and compliance risk, and provide a scalable backbone for cross-selling and multi-site integration—key for lasting efficiency gains.

Positive operating cash generation

Consistent operating cash inflows provide a fundamental buffer for a distribution business that requires working capital. Positive cash generation supports reinvestment in cold storage, funding tuck-in M&A without excessive external financing, and offers flexibility to service debt while the company works toward GAAP profitability.

Negative Factors

Persistent GAAP net losses

Ongoing GAAP losses erode equity and constrain the company's ability to self-fund strategic initiatives long term. Until adjusted gains convert into consistent GAAP profitability, the firm faces higher financing risk, weaker returns on invested capital, and limited capacity to absorb margin shocks or fund growth without dilutive or costly capital.

Gross margin compression

Even modest margin erosion materially weakens economics in low-margin food distribution. Compression signals exposure to cost inflation, tariffs, and pricing sensitivity among restaurant customers, reducing room to absorb higher operating costs and making sustainable profit improvements harder without structural cost or pricing advantages.

Volatile free cash flow and uneven profitability

Large swings in free cash flow complicate capital allocation and elevate liquidity risk for a working-capital intensive distributor. Volatility can force reliance on external funding for inventory and facility investments, undermining the company's ability to execute long-term network optimization and M&A plans without worsening leverage or diluting shareholders.

HF Foods Group Business Overview & Revenue Model

Company Description

HF Foods Group Inc., through its subsidiaries, operates as a food service distributor to Asian restaurants located in the Southeastern, Pacific, and Mountain West regions of the United States. It distributes Asian specialty food items, meat and poultry products, seafood, fresh produce, packaging and other items, and commodities. The company also provides design and printing services, as well as logistic and food processing services. In addition, it is involved in real estate holding activities. The company is headquartered in City of Industry, California.

How the Company Makes Money

HF Foods Group makes money primarily by purchasing food and foodservice products from manufacturers, growers, and other suppliers and then reselling those products to restaurants and other foodservice customers at a markup. Its core revenue stream is product sales through its distribution operations, which typically include (1) sales of perishable items such as fresh produce and refrigerated products, and (2) sales of non-perishable items such as frozen and dry goods and other restaurant-related supplies. Revenue is generated on a recurring basis through frequent customer replenishment orders, with delivery and route-based distribution supporting repeat purchasing. Earnings are influenced by sales volume, product mix (higher- vs. lower-margin categories), pricing discipline, procurement costs, logistics and warehouse efficiency, and customer retention within its target restaurant segment. Specific material partnership details beyond normal supplier and customer relationships are null.

HF Foods Group Financial Statement Overview

Summary

Despite meaningful revenue growth, the company remains GAAP-loss-making and earnings durability has been volatile. The balance sheet is serviceable with improving leverage, and operating/free cash flow has been positive recently, but free cash flow fell sharply in 2025 and consistency remains a concern.

Income Statement

Revenue expanded meaningfully in 2025 (up ~40% YoY), but profitability remains the central issue: net losses persisted in 2024–2025 and operating performance was also negative. Gross margin has been relatively steady in the high‑teens, yet it has not been enough to offset cost pressure and deliver consistent earnings. The multi-year path shows volatility—profitable in 2021, near breakeven in 2022–2023, then a step back into larger losses—limiting confidence in earnings quality and durability.

Balance Sheet

Leverage looks manageable for a distributor, with debt-to-equity improving to ~0.60 in 2025 from ~0.88 in 2024, which is a constructive trend. However, equity has declined over time and returns on equity have been negative in recent years due to ongoing losses, signaling pressure on the capital base if profitability doesn’t recover. Overall, the balance sheet appears serviceable, but not strong enough to fully cushion continued net losses.

Cash Flow

Cash generation has been positive in the last two years, with operating cash flow remaining solid in 2024–2025 and free cash flow positive as well—important support while earnings are negative. That said, free cash flow dropped sharply in 2025 (down ~62% YoY), and cash flow performance has been uneven historically (including negative operating and free cash flow in 2023). The business is generating cash, but consistency and trajectory have weakened recently.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	1.23B	1.20B	1.15B	1.17B	796.88M
Gross Profit	207.58M	205.19M	204.03M	205.51M	151.51M
EBITDA	34.20M	-8.04M	34.77M	32.40M	52.83M
Net Income	-38.84M	-48.51M	-2.17M	460.00K	22.14M
Balance Sheet
Total Assets	541.53M	549.99M	596.52M	637.53M	596.95M
Cash, Cash Equivalents and Short-Term Investments	8.64M	14.47M	15.23M	24.29M	14.79M
Total Debt	222.62M	209.93M	203.32M	224.67M	190.68M
Total Liabilities	337.94M	308.70M	308.54M	341.28M	301.96M
Stockholders Equity	202.05M	239.29M	286.66M	291.81M	290.95M
Cash Flow
Free Cash Flow	6.56M	10.09M	-5.16M	29.11M	15.30M
Operating Cash Flow	25.48M	22.64M	-1.65M	35.40M	17.51M
Investing Cash Flow	-20.37M	-12.55M	-1.51M	-50.79M	-41.08M
Financing Cash Flow	-10.93M	-10.85M	-5.89M	24.89M	28.78M

HF Foods Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HFFG, the sentiment is Negative. The current price of 2.59 is above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.92, and below the 200-day MA of 2.64, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HFFG.

HF Foods Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WILC	81 Outperform	$371.35M	12.30	18.55%	3.55%	9.33%	72.31%
CHEF	69 Neutral	$2.48B	28.36	12.69%	―	8.88%	54.12%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNFI	62 Neutral	$2.39B	28.34	-4.97%	―	1.45%	-5.49%
PFGC	57 Neutral	$13.29B	57.89	7.66%	―	10.55%	-23.38%
DIT	53 Neutral	$77.11M	21.55	0.90%	0.90%	3.90%	-87.36%
HFFG	48 Neutral	$97.07M	-0.76	-16.91%	―	4.10%	-2241.30%