HF Foods Group (HFFG) AI Stock Analysis

• Market Cap: $226.24M
• Dividend Yield: N/A
• Average Volume (3M): 274.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 4.63%
• EPS Growth: -2188.56%
• Country: US
• Employees: 1,015
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Food Distribution
• EPS (TTM): -0.92
• Shares Outstanding: 52,737,650
• 10 Day Avg. Volume: 359,727
• 30 Day Avg. Volume: 274,798
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.15
• Price to Cash Flow (P/CF): 1.80
• P/FCF Ratio: 1.90
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

HF Foods Group faces significant financial performance challenges, notably declining profitability and negative net income. While technical analysis indicates a positive price trend, valuation metrics suggest risk with a negative P/E ratio. Strategic investments and expanded credit facilities support future growth, but current financial metrics highlight ongoing challenges.

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 generates revenue through the sale of a wide array of food and restaurant supply products to Asian-themed restaurants across the United States. The company's primary revenue stream comes from distributing perishable and non-perishable food items, leveraging its extensive distribution network to reach a broad customer base. Additionally, HF Foods benefits from economies of scale by operating large distribution centers, allowing it to maintain competitive pricing. The company also engages in strategic partnerships and acquisitions to expand its market presence and enhance its product offerings, further contributing to its financial performance.

HF Foods Group Financial Statement Overview

Summary

HF Foods Group exhibits strong revenue growth but faces challenges in profitability and operational efficiency. The declining net profit margin and negative EBIT and EBITDA margins, coupled with a weakened equity position, highlight financial health concerns.

Income Statement

HF Foods Group's revenue growth has been strong over the years; however, recent trends show declining profitability with a negative net profit margin of -4.0% in 2024. The company's gross profit margin remains stable at approximately 17.1%, but the negative EBIT and EBITDA margins in the latest year highlight operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio with a decrease in total debt over the years. However, the equity ratio has slightly weakened, indicating potential risk if liabilities continue to rise. Return on equity turned negative, reflecting the net losses impacting shareholder returns.

Cash Flow

Operating cash flow has improved, but free cash flow has shown volatility, decreasing recently. The free cash flow to net income ratio is positive, suggesting effective cash conversion despite net losses. However, the fluctuating cash flows present potential challenges in sustaining operations without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.20B	1.15B	1.17B	796.88M	566.83M
	Gross Profit
205.19M	204.03M	205.51M	151.51M	100.29M
	EBIT
-39.13M	8.97M	-18.29M	29.48M	-4.48M
	EBITDA
-8.04M	34.77M	36.84M	52.83M	-322.75M
	Net Income Common Stockholders
-48.51M	-2.17M	235.00K	22.14M	-342.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.47M	15.23M	24.29M	14.79M	9.58M
	Total Assets
549.99M	596.52M	637.53M	596.95M	484.29M
	Total Debt
100.92M	203.32M	230.15M	190.68M	135.75M
	Net Debt
86.45M	188.09M	205.86M	175.89M	126.17M
	Total Liabilities
308.70M	308.54M	341.28M	301.96M	219.48M
	Stockholders Equity
239.29M	286.66M	291.81M	290.95M	260.43M
Cash Flow		Free Cash Flow
10.09M	12.29M	25.00M	15.30M	43.47M
	Operating Cash Flow
22.64M	15.80M	31.28M	17.51M	44.13M
	Investing Cash Flow
-12.55M	-1.51M	-50.79M	-41.08M	-94.41M
	Financing Cash Flow
-10.85M	-23.35M	29.00M	28.78M	45.32M

HF Foods Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HFFG, the sentiment is Positive. The current price of 3.96 is above the 20-day moving average (MA) of 3.69, above the 50-day MA of 2.86, and above the 200-day MA of 3.21, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 69.23 is Neutral, neither overbought nor oversold. The STOCH value of 85.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HFFG.

HF Foods Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USFD	79 Outperform	$13.93B	30.01	10.65%	―	6.41%	-2.01%
SYY	74 Outperform	$34.95B	18.35	87.49%	2.92%	3.95%	-5.04%
CHEF	71 Outperform	$2.05B	38.05	11.18%	―	10.50%	59.18%
PFGC	71 Outperform	$11.19B	28.95	9.54%	―	3.85%	-9.74%
Sector *	59 Neutral	$10.97B	9.83	-1.56%	4.06%	1.31%	-16.49%
UNFI	55 Neutral	$1.49B	―	-4.94%	―	4.73%	29.70%
HFFG	54 Neutral	$226.24M	―	-18.45%	―	4.63%	-2188.56%

HF Foods Group Corporate Events

HF Foods Group Expands Credit Agreement with Banks

On February 12, 2025, HF Foods Group Inc. amended its credit agreement with JPMorgan Chase Bank and Comerica Bank to increase its aggregate revolving commitment by $25 million, bringing it to $125 million. The agreement also added Wells Fargo as an additional lender, demonstrating the banking partners’ confidence in HF Foods’ growth strategy and positioning it to capitalize on favorable market trends and the growing demand for Asian food.