HF Foods Group (HFFG) AI Stock Analysis

• Market Cap: $169.99M
• Dividend Yield: N/A
• Average Volume (3M): 88.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 4.88%
• EPS Growth: -1359.01%
• Country: US
• Employees: 1,015
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Food Distribution
• EPS (TTM): 0.12
• Shares Outstanding: 55,012,127
• 10 Day Avg. Volume: 73,047
• 30 Day Avg. Volume: 88,758
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: -25.10
• 1Y Price Target: $5.50
• Price Target Upside: 79.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: $4.00 ▲(30.72% Upside)

HF Foods Group's overall stock score reflects a mixed financial performance with stable revenue growth but profitability challenges. The earnings call provided a positive outlook with strong financial results and strategic initiatives, which are significant factors. Technical analysis suggests a neutral trend, while valuation remains a concern due to negative earnings.

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 primarily through the wholesale distribution of food products to restaurants and foodservice operators. The company's revenue model is built on selling a wide variety of food items, including meat, seafood, sauces, and staple goods, to ethnic and Asian restaurants, which represent a significant portion of their customer base. Key revenue streams include direct sales to customers, long-term contracts with restaurants, and partnerships with food manufacturers for exclusive distribution rights. Additionally, HF Foods Group benefits from economies of scale in procurement and distribution, optimizing costs and enhancing profitability. Strategic partnerships with suppliers also enable the company to maintain a competitive edge in pricing and product availability, contributing to its overall earnings.

HF Foods Group Financial Statement Overview

Summary

HFFG shows stable revenue growth, but negative net income and EBIT margins indicate profitability challenges. The balance sheet reflects improved leverage and stable asset structure, while positive operating cash flow suggests operational resilience despite inconsistent free cash flow growth.

Income Statement

HF Foods Group's revenue shows a slight growth trajectory, with a TTM revenue of $1.2 billion. However, the net profit margin is negative, indicating losses, and EBIT has been consistently negative, affecting profitability. The gross profit margin remains relatively stable but insufficient to cover operational costs, as reflected in negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, improving from previous periods, indicating better leverage management. However, the return on equity is negative due to net losses. The equity ratio remains stable, suggesting a balanced asset structure relative to equity.

Cash Flow

Cash flow analysis reveals positive operating cash flow, but free cash flow growth has been inconsistent. The operating cash flow to net income ratio suggests operational cash generation despite net losses, indicating resilience in cash flow operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.20B	1.15B	1.17B	796.88M	566.83M
Gross Profit	205.74M	205.19M	204.03M	205.51M	151.51M	100.29M
EBITDA	-15.65M	-8.04M	34.77M	36.84M	52.83M	-322.75M
Net Income	-49.46M	-48.51M	-2.17M	460.00K	22.14M	-342.68M
Balance Sheet
Total Assets	581.85M	549.99M	596.52M	637.53M	596.95M	484.29M
Cash, Cash Equivalents and Short-Term Investments	16.10M	14.47M	15.23M	24.29M	14.79M	9.58M
Total Debt	126.35M	204.25M	203.32M	224.67M	190.68M	142.25M
Total Liabilities	341.71M	308.70M	308.54M	341.28M	301.96M	219.48M
Stockholders Equity	238.02M	239.29M	286.66M	291.81M	290.95M	260.43M
Cash Flow
Free Cash Flow	8.99M	10.09M	12.29M	25.00M	15.30M	43.47M
Operating Cash Flow	22.53M	22.64M	15.80M	31.28M	17.51M	44.13M
Investing Cash Flow	-13.53M	-12.55M	-1.51M	-50.79M	-41.08M	-94.41M
Financing Cash Flow	-11.12M	-10.85M	-23.35M	29.00M	28.78M	43.76M

HF Foods Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.06 is below the 20-day moving average (MA) of 3.37, below the 50-day MA of 3.19, and below the 200-day MA of 3.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 5.17 is Positive, 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	78 Outperform	$279.94M	10.59	15.58%	4.79%	12.41%	137.89%
CHEF	73 Outperform	$2.61B	40.02	13.64%	―	7.90%	68.05%
DIT	66 Neutral	$74.22M	55.29	1.18%	0.86%	6.00%	-79.17%
UNFI	66 Neutral	$1.75B	―	-4.11%	―	6.62%	53.12%
Sector *	62 Neutral	$20.53B	14.80	-2.69%	3.11%	1.95%	-4.97%
SPTN	58 Neutral	$908.07M	2,245.98	-2.08%	3.26%	1.54%	-134.75%
HFFG	57 Neutral	$169.99M	―	-18.35%	―	4.88%	-1359.01%

HF Foods Group Corporate Events

HF Foods Group Updates Executive Severance Plan

On July 1, 2025, HF Foods Group Inc. implemented an Amended and Restated Severance Plan for its executives, including Vice Presidents and Senior Vice Presidents. The updated plan modifies severance payment structures, removes certain exceptions related to ‘change in control’ events, and introduces eligibility for additional bonuses, potentially impacting the company’s executive retention and financial obligations.

HF Foods Group Appoints New Board Member Amid Changes

On June 1 and June 2, 2025, HF Foods Group Inc. experienced the resignations of directors Lisa Lim and Charlotte Westfall, effective June 2, 2025, without any disagreements related to company operations. Consequently, they did not stand for re-election at the annual meeting on June 3, 2025. Dennis Lam, a certified public accountant with extensive experience in audit and advisory services, was appointed to the board effective June 4, 2025, filling one of the vacancies. Lam will serve as the Chair of the Audit Committee and a member of the Compensation and Nominating and Governance Committees. Additionally, the Compensation Committee approved increases in cash and equity compensation for independent directors, effective July 1, 2025.