HF Foods Group (HFFG) AI Stock Analysis

• Market Cap: $110.86M
• Dividend Yield: N/A
• Average Volume (3M): 84.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 4.10%
• EPS Growth: -2241.30%
• Country: US
• Employees: 1,015
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.08
• Shares Outstanding: 53,043,830
• 10 Day Avg. Volume: 111,903
• 30 Day Avg. Volume: 84,223
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 16.72
• Enterprise Value/Market Cap: 3.03
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.61
• Enterprise Value/Ebitda: -56.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): $1.27B

• Rating: 49 Neutral
• Price Target: $2.00 ▼(-22.78% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held down primarily by weak financial performance (losses, negative ROE, and pressured margins) and bearish technicals (price below all key moving averages with negative MACD). Positives from the earnings call—strong adjusted EBITDA growth and operational initiatives—partially offset these risks, while valuation remains constrained by negative earnings and no stated dividend yield.

Positive Factors

Strong revenue and adjusted EBITDA growth

Substantial top-line expansion and a large jump in adjusted EBITDA signal improving operating leverage and scale in distribution. Sustained revenue growth paired with rising adjusted EBITDA supports reinvestment, network expansion, and the path toward consistent profitability if margin pressures are managed.

Operational transformation and capacity buildout

A company-wide modern ERP, doubled cold-storage capacity in Atlanta, and a strategic Chicago warehouse acquisition are durable operational upgrades. These investments improve efficiency, inventory visibility, distribution economics and cross-selling, structurally strengthening fulfillment capabilities and margin potential over time.

Operating cash flow generation despite net losses

Positive operating cash flow while reporting accounting losses indicates core distribution collects cash and funds working capital. This cash generation provides resilience to fund operations, capital projects, and debt service during the earnings recovery phase, reducing reliance on external financing.

Negative Factors

Persistent negative net income and weak ROE

Continued net losses and negative ROE show the business is not yet generating returns on shareholder capital. Over the medium term this undermines equity value creation, constrains retained earnings for reinvestment, and requires sustained operational improvement to justify ongoing capital allocation.

Margin pressure and declining profitability margins

A slipping gross margin driven by a higher mix of lower-margin products and external pressures reduces the ability to convert revenue growth into profits. Persistent margin erosion limits free cash flow expansion and makes earnings more sensitive to commodity, tariff, and mix shifts over the coming months.

Negative free cash flow growth and moderate leverage

Declining free cash flow growth constrains capital for reinvestment or debt paydown, while a debt-to-equity near 1 reduces financial flexibility. Together these structural pressures increase refinancing risk and limit the firm's ability to fund expansion or absorb shocks without external capital.

HF Foods Group Business Overview & Revenue Model

Company Description

HF Foods Group (HFFG) is a leading food service distributor that specializes in supplying Asian and other ethnic food products to restaurants, grocery stores, and other food service businesses across the United States. The company operates primarily in the food distribution sector and focuses on providing a wide range of products, including frozen, dry, and refrigerated food items, as well as specialty items that cater to diverse culinary preferences. HF Foods Group aims to enhance the dining experience for consumers by offering high-quality ingredients and exceptional service to its customers.

How the Company Makes Money

HF Foods Group generates revenue primarily through the sale of food products to its customers in the food service industry. The company's revenue model is built on bulk distribution, where it sells a wide array of food items to restaurants, grocery stores, and catering services, allowing for significant volume sales. Key revenue streams include the sale of frozen, refrigerated, and dry food products, as well as specialty ingredients that appeal to ethnic cuisine markets. Additionally, the company may benefit from long-term contracts and partnerships with key clients that provide consistent revenue. Factors contributing to its earnings include the growing demand for ethnic foods in the U.S., operational efficiencies in logistics and distribution, and the ability to adapt to market trends and consumer preferences.

HF Foods Group Financial Statement Overview

Summary

Financial statements show strong revenue growth but persistent profitability issues (negative net income/EBIT and negative ROE). Cash generation is better than earnings (positive operating cash flow vs. net losses), but declining free cash flow growth and weak margins keep the overall financial picture below average.

Income Statement

HF Foods Group's income statement shows a challenging financial position with negative net profit margins and declining EBIT and EBITDA margins over the TTM (Trailing-Twelve-Months). Despite a significant revenue growth rate of 67% in the TTM, the company struggles with profitability, as evidenced by the negative net income and EBIT. The gross profit margin remains relatively stable, indicating some efficiency in managing production costs, but overall profitability remains a concern.

Balance Sheet

The balance sheet reflects a moderately leveraged position with a debt-to-equity ratio close to 1 in the TTM, indicating a balanced use of debt and equity. However, the negative return on equity suggests that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, showing that a reasonable portion of the company's assets is financed by equity, but the negative ROE highlights profitability challenges.

Cash Flow

Cash flow analysis reveals a mixed picture. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations despite reporting net losses. However, the free cash flow growth rate is negative, suggesting a decline in available cash for reinvestment or debt repayment. The free cash flow to net income ratio is relatively high, reflecting efficient cash generation relative to net income, but the overall cash flow position needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Dec 2020
Income Statement
Total Revenue	1.22B	1.20B	1.15B	1.17B	796.88M	566.83M
Gross Profit	208.66M	205.19M	204.03M	205.51M	151.51M	100.75M
EBITDA	-6.00M	-8.04M	34.77M	32.40M	52.83M	-324.70M
Net Income	-45.44M	-48.51M	-2.17M	460.00K	22.14M	-343.51M
Balance Sheet
Total Assets	595.08M	549.99M	596.52M	637.53M	596.95M	490.59M
Cash, Cash Equivalents and Short-Term Investments	12.33M	14.47M	15.23M	24.29M	14.79M	9.58M
Total Debt	237.87M	209.93M	203.32M	224.67M	190.68M	142.25M
Total Liabilities	354.22M	308.70M	308.54M	341.28M	301.96M	227.07M
Stockholders Equity	239.21M	239.29M	286.66M	291.81M	290.95M	259.15M
Cash Flow
Free Cash Flow	17.29M	10.09M	-5.16M	29.11M	15.30M	45.03M
Operating Cash Flow	30.42M	22.64M	-1.65M	35.40M	17.51M	45.69M
Investing Cash Flow	-12.99M	-12.55M	-1.51M	-50.79M	-41.08M	-94.41M
Financing Cash Flow	-16.55M	-10.85M	-5.89M	24.89M	28.78M	43.76M

HF Foods Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 2.59 is above the 20-day moving average (MA) of 1.66, above the 50-day MA of 2.01, and below the 200-day MA of 2.78, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 92.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$350.39M	13.21	15.15%	3.55%	9.33%	72.31%
CHEF	69 Neutral	$2.91B	42.51	12.67%	―	8.88%	54.12%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PFGC	57 Neutral	$15.25B	44.07	7.75%	―	10.55%	-23.38%
DIT	53 Neutral	$72.24M	69.08	0.51%	0.90%	3.90%	-87.36%
UNFI	52 Neutral	$2.33B	-22.92	-6.37%	―	1.45%	-5.49%
HFFG	49 Neutral	$110.86M	-2.43	-17.40%	―	4.10%	-2241.30%