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HF Foods Group Inc (HFFG)
NASDAQ:HFFG
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HF Foods Group
(NASDAQ:HFFG)
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Rating:53Neutral
Price Target:
$3.00
▲(8.70% Upside)
HF Foods Group's overall stock score is driven by mixed financial performance and bearish technical indicators. Despite strong earnings call highlights, ongoing profitability challenges and negative valuation metrics weigh on the score. The company's strategic initiatives and operational improvements provide some optimism, but economic uncertainties and market conditions present risks.
HF Foods Group (HFFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$146.14M
Dividend YieldN/A
Average Volume (3M)82.32K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth4.88%
EPS Growth-1359.01%
CountryUS
Employees1,015
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.12
Shares Outstanding53,043,830
10 Day Avg. Volume115,759
30 Day Avg. Volume82,318
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.69
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda-25.10
Forecast
1Y Price Target
$7.00Price Target Upside153.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
HF Foods Group Business Overview & Revenue Model
Company DescriptionHF 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 MoneyHF 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 Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
HF Foods reported strong financial results, including record net revenue and gross profit, driven by strategic initiatives and operational discipline. However, challenges such as reduced foot traffic due to economic uncertainty, immigration policy impact, and tariff uncertainties present notable concerns.Q2-2025 Updates
Positive Updates
Record Net Revenue and Gross Profit
HF Foods reported the highest net revenue and gross profit ever recorded, with net revenue increasing 4.1% year-over-year to $314.9 million and gross profit increasing 5.1% to $55.1 million.
Significant Adjusted EBITDA Growth
Adjusted EBITDA increased 31.1% year-over-year to $13.8 million, reflecting strong operational performance.
Successful ERP System Implementation
HF Foods successfully deployed a new ERP system across its network, enhancing efficiency, visibility, and control.
Strategic Facility Enhancements
Renovations at the Charlotte distribution center and progress on the Atlanta facility are expected to create growth opportunities.
Net Income Increase
Net income increased 117% year-over-year to $0.5 million, driven by revenue growth and cost management.
Negative Updates
Lower Foot Traffic and Exit Velocity
Towards the end of Q2 and into Q3, HF Foods experienced a decrease in foot traffic and exit velocity due to economic uncertainty.
Impact of Immigration Policies
Foot traffic, particularly in buffet-style restaurants, was impacted by recent changes in immigration policy.
Tariff Uncertainties
Uncertainties around tariff impacts, especially concerning frozen seafood imports from India, pose potential challenges.
Company Guidance
During the HF Foods Group Second Quarter 2025 Earnings Call, the company reported an impressive financial performance despite a challenging economic environment. The net revenue increased by 4.1% year-over-year, reaching $314.9 million, while the gross profit rose by 5.1% to $55.1 million. Adjusted EBITDA saw a significant jump of 31.1%, amounting to $13.8 million. These numbers demonstrate the company's effective strategic execution and operational discipline, even amidst macroeconomic challenges such as tariffs and shifting consumer behaviors. HF Foods highlighted a strategic focus on diversifying its supplier base and enhancing its digital infrastructure, which included the successful deployment of a new ERP system. The company remains committed to long-term growth, supported by capital investments and strategic M&A opportunities, aiming to expand its market share in the Asian specialty food service sector. Additionally, the company managed to reduce total interest expenses to $2.8 million and increased net income by 117% to $0.5 million compared to the previous year, with GAAP diluted EPS rising to $0.02 from $0.00 and non-GAAP diluted EPS increasing to $0.12 from $0.04.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.45
Neutral
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.55
Neutral
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.60
Neutral
| 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
Negative
2.76
Price Trends
3.19
Negative
3.39
Negative
3.27
Negative
Market Momentum
-0.05
Positive
32.17
Neutral
20.02
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 2.76 is below the 20-day moving average (MA) of 3.22, below the 50-day MA of 3.19, and below the 200-day MA of 3.27, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 32.17 is Neutral, neither overbought nor oversold. The STOCH value of 20.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HFFG.
HF Foods Group Risk Analysis
HF Foods Group disclosed 2 risk factors in its most recent earnings report. HF Foods Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HF Foods Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $280.42M | 10.61 | 15.17% | 4.96% | 12.41% | 137.89% | |
75 Outperform | $2.39B | 36.13 | 10.32% | ― | 7.90% | 68.05% | |
69 Neutral | $74.71M | 55.65 | 1.16% | 0.86% | 6.00% | -79.17% | |
66 Neutral | $1.92B | -27.74 | ― | ― | 6.62% | 53.12% | |
53 Neutral | $146.14M | ― | -18.35% | ― | 4.88% | -1359.01% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
HFFG
HF Foods Group
2.76
-0.81
-22.69%
DIT
Amcon Distributing Company
115.74
-28.07
-19.52%
WILC
Willi Food Inte
20.20
9.96
97.27%
SPTN
SpartanNash Co
26.90
5.44
25.35%
CHEF
The Chefs' Warehouse
58.48
16.47
39.20%
UNFI
United Natural Foods
31.76
14.94
88.82%
HF Foods Group Corporate Events
Business Operations and StrategyExecutive/Board Changes
HF Foods Group Updates Executive Severance Plan
Neutral
Jul 7, 2025
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.
The most recent analyst rating on (HFFG) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on HF Foods Group stock, see the HFFG Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.