HF Foods Group (HFFG) AI Stock Analysis

• Market Cap: $128.90M
• Dividend Yield: N/A
• Average Volume (3M): 82.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• 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: 65,673
• 30 Day Avg. Volume: 82,606
• 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: 2.90
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: -62.30
• 1Y Price Target: $7.00
• Price Target Upside: 170.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $1.23B

• Rating: 56 Neutral
• Price Target: $2.50 ▼(-3.47% Downside)

The overall stock score for HF Foods Group is primarily influenced by its financial performance challenges, including negative profit margins and cash flow issues. Technical analysis indicates a bearish trend, while valuation metrics are weak due to a negative P/E ratio. The earnings call provides some optimism with strategic initiatives and growth in EBITDA, but concerns remain regarding profitability and restructuring impacts.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Digital Transformation

The new ERP system enhances operational efficiency and control, providing a competitive edge and supporting sustainable growth.

Facility Enhancements

Expanding facility capacity will support increased demand and improve logistics, strengthening market position and operational efficiency.

Negative Factors

Profitability Challenges

Declining profit margins indicate cost pressures and may impact long-term profitability if not addressed through strategic cost management.

Tariff and Market Challenges

Tariff pressures and market shifts can affect cost structures and demand, posing risks to sustained profitability and market stability.

Sales Force Restructuring Risks

Restructuring may cause short-term disruptions, impacting sales performance and customer relationships, though expected to stabilize by 2026.

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

HF Foods Group faces significant challenges in profitability and cash flow management, despite strong revenue growth. The company needs to address its negative profit margins and improve its return on equity to enhance shareholder value. While the balance sheet shows a balanced leverage position, the negative cash flow growth and profitability metrics indicate potential risks. Strategic improvements in cost management and operational efficiency are essential for future financial stability.

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	Dec 2021	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: Positive
• Last Price: 2.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.35, above the 50-day MA of 2.45, and below the 200-day MA of 3.13, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 74.56 is Neutral, 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
WILC	81 Outperform	$345.67M	13.03	15.15%	4.02%	9.33%	72.31%
CHEF	72 Outperform	$2.44B	34.70	14.12%	―	8.88%	54.12%
PFGC	63 Neutral	$14.96B	45.86	7.42%	―	10.55%	-23.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HFFG	56 Neutral	$128.90M	―	-17.40%	―	4.10%	-2241.30%
DIT	54 Neutral	$73.53M	122.48	0.51%	0.88%	3.90%	-87.36%
UNFI	52 Neutral	$2.09B	―	-6.37%	―	1.45%	-5.49%

HF Foods Group Corporate Events

HF Foods Group Earnings Call Highlights Growth Amid Challenges

The recent earnings call for HF Foods Group conveyed a generally positive sentiment, highlighting significant growth in revenue and EBITDA alongside successful strategic initiatives and improved financial metrics. However, the call also acknowledged challenges such as declining gross profit margins and potential disruptions from restructuring efforts, which present areas of concern for the company moving forward.

HF Foods Group Reports Strong Q3 2025 Results

HF Foods Group Inc., a prominent distributor of foodservice solutions to Asian restaurants across the United States, has reported its financial results for the third quarter of 2025, showcasing a mix of growth and challenges in its operations.

HF Foods Group Appoints New Board Member and Interim CFO

On October 16, 2025, HF Foods Group announced the appointment of Jeffery Taylor to its Board of Directors. Taylor, with over 27 years of senior finance leadership experience, is expected to play a crucial role in the company’s operational transformation plan, bringing expertise in financial management, M&A execution, and capital markets financing. Additionally, HF Foods announced a CFO transition with Paul McGarry stepping in as Interim CFO, replacing Cindy Yao, to further enhance its financial leadership during this strategic transformation.

The most recent analyst rating on (HFFG) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on HF Foods Group stock, see the HFFG Stock Forecast page.

HF Foods Group Acquires Chicago Distribution Facility

On September 29, 2025, HF Foods Group announced a binding purchase agreement to acquire a distribution facility in Chicago, Illinois, previously leased following its acquisition of Great Wall Seafood in 2022. This strategic move is part of HF Foods’ transformation plan to improve operational efficiency, reduce facility costs, and support long-term growth. The acquisition is expected to enhance the company’s Midwest distribution footprint, improve operating expenses, and expand capacity, benefiting local restaurant customers in the Chicago and Midwest region. Additionally, HF Foods’ At-the-Market equity offering program is anticipated to provide the financial flexibility needed for this acquisition and future business expansions.

The most recent analyst rating on (HFFG) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on HF Foods Group stock, see the HFFG Stock Forecast page.

HF Foods Group Launches $100M ATM Equity Offering

On September 25, 2025, HF Foods Group Inc. announced the establishment of an At-The-Market (ATM) equity offering program, allowing the company to sell shares of its common stock for up to $100 million through sales agents D.A. Davidson & Co. and Roth Capital Partners. The proceeds from this offering are intended for general corporate purposes, including working capital, capital expenditures, and potential acquisitions or business expansion, which could impact the company’s operations and market positioning.

The most recent analyst rating on (HFFG) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on HF Foods Group stock, see the HFFG Stock Forecast page.

HF Foods Group Reports Record Earnings Amid Challenges

HF Foods Group’s latest earnings call revealed a generally positive sentiment, underscored by record-breaking financial results. The company reported significant growth in net revenue and gross profit, attributed to strategic initiatives and operational discipline. However, the call also highlighted challenges such as reduced foot traffic due to economic uncertainty, immigration policy impacts, and tariff uncertainties, which remain areas of concern.