HF Foods Group Inc (HFFG)
NASDAQ:HFFG
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HF Foods Group
(NASDAQ:HFFG)
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Rating:48Neutral
Price Target:
$2.00
▼(-22.78% Downside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by weak financial performance—thin margins, recent losses, and a sharp deterioration in free cash flow—despite improved leverage. Earnings-call commentary and the credit facility extension are constructive (profitability improvement and better financing runway), but technical signals and valuation remain only neutral, limiting overall upside conviction.
Positive Factors
Market leadership and large addressable market
Being the largest U.S. Asian specialty food distributor with ~ $1B revenue inside a cited $50B addressable market provides durable scale advantages. This supports long-term organic cross-sell, pricing leverage with suppliers, and repeat revenue from dense route networks, underpinning growth runway.
Negative Factors
Thin profitability and weakening free cash flow
Persistent thin operating margins and a material decline in free cash flow are structural concerns. Even with positive operating cash flow, weakened FCF limits internal funding for expansion or debt reduction, increases reliance on external financing, and reduces resilience to margin shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Market leadership and large addressable market
Being the largest U.S. Asian specialty food distributor with ~ $1B revenue inside a cited $50B addressable market provides durable scale advantages. This supports long-term organic cross-sell, pricing leverage with suppliers, and repeat revenue from dense route networks, underpinning growth runway.
Read all positive factors
HF Foods Group (HFFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$107.49M
Dividend YieldN/A
Average Volume (3M)84.22K
Price to Earnings (P/E)20.0
Beta (1Y)0.75
Revenue Growth3.11%
EPS Growth27.70%
CountryUS
Employees1,015
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)-0.68
Shares Outstanding53,475,418
10 Day Avg. Volume111,903
30 Day Avg. Volume84,223
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.56
Price to Sales (P/S)0.09
P/FCF Ratio17.35
Enterprise Value/Market Cap2.06
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit1.11
Enterprise Value/Ebitda8.14
Forecast
1Y Price Target
$5.50Price Target Upside112.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.14
Revenue Forecast (FY)$1.27B
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 po...
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...
HF Foods Group Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call balanced positive execution and progress on strategic initiatives against near-term margin pressures. Management reported revenue growth (+4.5%), improved Adjusted EBITDA (+3.8%), a return to GAAP profitability (net income $1.2M) and operational milestones (ERP completion, sales consolidation, facility acquisitions/expansions). Offsetting these positives were gross margin compression (down ~0.9pp), modest declines in adjusted net income and adjusted EPS, and continued headwinds from elevated fuel and landed costs with some permit timing risk. Overall, the company appears to be progressing on long-term transformation and capacity expansion while managing expected short-term cost pressures.Positive Updates
Revenue Growth
Net revenue increased 4.5% year-over-year to $312.0M (from $298.4M), driven by volume growth and improved pricing in seafood and commodity categories.
Negative Updates
Gross Profit and Margin Compression
Gross profit decreased 0.8% to $50.5M (from $51.0M) and gross margin declined to 16.2% from 17.1% (approximately a 0.9 percentage-point drop), primarily due to a higher mix of lower-margin seafood and elevated landed costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Net revenue increased 4.5% year-over-year to $312.0M (from $298.4M), driven by volume growth and improved pricing in seafood and commodity categories.
Read all positive updates
Company Guidance
Management said they expect short‑term pressure from higher cost of goods sold and outbound distribution costs tied to rising fuel that could persist into Q2 and possibly beyond, but reiterated confidence that completed initiatives will drive efficiency and growth: ERP implementation finished; net revenue +4.5% YoY to $312.0M; gross profit $50.5M (−0.8%) and gross margin 16.2% (vs 17.1% prior); DS&A down $0.3M to $49.5M (15.9% of revenue vs 16.7%); Adjusted EBITDA +3.8% to $10.1M; interest expense ~$2.8M; net income $1.2M (vs loss $1.6M) and adjusted net income $3.4M (vs $3.5M); EPS $0.20 (adjusted EPS $0.06 vs $0.07); they expect the Charlotte facility to be operational in late Q2 2026, Atlanta freezer capacity to grow from 10k to 20k sq ft (operationally ready in 2026), Chicago facility acquired, and see several hundred million dollars of organic cross‑sell opportunity in the Southeast/Midwest within a $50B addressable market while remaining active on disciplined M&A.HF Foods Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.24B | 1.23B | 1.20B | 1.15B | 1.17B | 796.88M |
| Gross Profit | 200.03M | 207.58M | 205.19M | 204.03M | 205.51M | 151.51M |
| EBITDA | 27.24M | 34.20M | -8.04M | 34.77M | 32.40M | 52.83M |
| Net Income | -35.97M | -38.84M | -48.51M | -2.17M | 460.00K | 22.14M |
Balance Sheet | ||||||
| Total Assets | 545.88M | 541.53M | 549.99M | 596.52M | 637.53M | 596.95M |
| Cash, Cash Equivalents and Short-Term Investments | 11.06M | 8.64M | 14.47M | 15.23M | 24.29M | 14.79M |
| Total Debt | 125.39M | 222.62M | 209.93M | 203.32M | 224.67M | 190.68M |
| Total Liabilities | 341.19M | 337.94M | 308.70M | 308.54M | 341.28M | 301.96M |
| Stockholders Equity | 203.68M | 202.05M | 239.29M | 286.66M | 291.81M | 290.95M |
Cash Flow | ||||||
| Free Cash Flow | 3.14M | 6.56M | 10.09M | -5.16M | 29.11M | 15.30M |
| Operating Cash Flow | 33.82M | 25.48M | 22.64M | -1.65M | 35.40M | 17.51M |
| Investing Cash Flow | -28.76M | -20.37M | -12.55M | -1.51M | -50.79M | -41.08M |
| Financing Cash Flow | -10.10M | -10.93M | -10.85M | -5.89M | 24.89M | 28.78M |
HF Foods Group Technical Analysis
Positive
2.59
Price Trends
1.96
Positive
1.95
Positive
2.35
Negative
Market Momentum
<0.01
Negative
53.11
Neutral
28.32
Neutral
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 2.59 is above the 20-day moving average (MA) of 1.94, above the 50-day MA of 1.96, and above the 200-day MA of 2.35, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 28.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $504.28M | 16.37 | 17.27% | 3.55% | 13.95% | 37.07% | |
70 Outperform | $3.12B | 33.24 | 13.54% | ― | 10.01% | 22.30% | |
66 Neutral | $14.71B | 77.54 | 7.13% | ― | 8.45% | -12.95% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $3.00B | 28.34 | -4.97% | ― | -0.44% | 6.45% | |
60 Neutral | $78.70M | -6.38 | 0.38% | 0.90% | 4.89% | -71.27% | |
48 Neutral | $107.49M | 20.03 | -16.27% | ― | 3.11% | 27.70% |
* Consumer Defensive Sector Average
HFFG
HF Foods Group
2.10
-1.83
-46.56%
DIT
Amcon Distributing Company
80.88
5.87
7.83%
WILC
Willi Food Inte
36.02
20.69
134.98%
CHEF
The Chefs' Warehouse
76.88
13.35
21.01%
UNFI
United Natural Foods
49.85
19.39
63.66%
PFGC
Performance Food Group
93.91
7.76
9.01%
HF Foods Group Corporate Events
Business Operations and StrategyPrivate Placements and Financing
HF Foods Group Amends and Extends Revolving Credit Facility
Positive
Apr 3, 2026
On March 30, 2026, HF Foods Group Inc., together with BR Global Holdings, Inc. and certain subsidiaries, entered into a Fifth Amendment to its Third Amended and Restated Credit Agreement with JPMorgan Chase Bank as administrative agent and a syndi...
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.