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HF Foods Group
(NASDAQ:HFFG)
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Rating:46Neutral
Price Target:
$1.50
▼(-3.85% Downside)
Action:Reiterated
Date:08/01/26
The score is held down primarily by weak underlying financial performance (thin margins, recent losses, and deteriorating free cash flow) and a clear bearish price trend (below all key moving averages). Earnings-call execution and strategic progress (return to GAAP profit, ERP completion, facility expansion plans) plus supportive financing and M&A provide some offset, but near-term margin pressures and governance concerns keep the overall outlook constrained.
Positive Factors
Market Position & Addressable Market
HF Foods' leadership in the U.S. Asian specialty distribution niche and a stated $50B addressable market provide durable growth runway. Scale in a focused segment supports supplier access, cross-sell opportunities, and regional expansion economics that underpin long-term revenue and margin improvement.
Negative Factors
Thin Profitability & Margin Pressure
Persistently thin gross and operating margins limit the company's ability to absorb cost inflation (fuel, landed costs) and to finance expansion internally. Unless product mix or procurement advantage materially improve, margin constraints threaten sustainable conversion of revenue growth into durable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Market Position & Addressable Market
HF Foods' leadership in the U.S. Asian specialty distribution niche and a stated $50B addressable market provide durable growth runway. Scale in a focused segment supports supplier access, cross-sell opportunities, and regional expansion economics that underpin long-term revenue and margin improvement.
Read all positive factors
HF Foods Group (HFFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.21M
Dividend YieldN/A
Average Volume (3M)84.22K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth3.11%
EPS Growth27.70%
CountryUS
Employees952
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$5.50Price Target Upside252.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.04
Revenue Forecast (FY)$1.27B
HF Foods Group Business Overview & Revenue Model
Company Description
HF Foods Group Inc. (HFFG), through its various subsidiary companies, primarily operates as a food service provider for Asian restaurants. Its operational footprint covers the Southeastern, Pacific, and Mountain West areas of the United States. Th...
How the Company Makes Money
HFFG primarily makes money by purchasing food and restaurant-supply products from growers, manufacturers, and other suppliers and reselling them to foodservice customers at a markup, generating revenue from product sales (its core revenue stream)....
HF Foods Group Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 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 | -1.04M | -5.43M | -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 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $373.33M | 13.05 | 16.97% | 3.09% | 18.26% | 40.02% | |
70 Outperform | $4.71B | 48.47 | 15.09% | ― | 11.16% | 30.78% | |
66 Neutral | $17.97B | 53.96 | 7.13% | ― | 8.45% | -12.95% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
51 Neutral | $61.10M | 91.43 | 0.38% | 1.03% | 4.89% | -71.27% | |
50 Neutral | $3.08B | -81.21 | -2.43% | ― | -3.22% | 44.69% | |
46 Neutral | $80.21M | -2.22 | -16.27% | ― | 3.11% | 27.70% |
* Consumer Defensive Sector Average
HFFG
HF Foods Group
1.46
-1.38
-48.59%
DIT
Amcon Distributing Company
68.34
-4.02
-5.56%
WILC
Willi Food Inte
28.21
7.58
36.76%
CHEF
The Chefs' Warehouse
109.14
45.19
70.66%
UNFI
United Natural Foods
47.86
21.28
80.06%
PFGC
Performance Food Group
114.58
16.35
16.64%
HF Foods Group Corporate Events
Business Operations and StrategyPrivate Placements and Financing
HF Foods Group Expands Long-Term Credit Facility Commitments
Positive
Jul 31, 2026
On July 29, 2026, HF Foods Group Inc. and its subsidiaries entered into a Seventh Amendment to their Third Amended and Restated Credit Agreement, expanding their asset-based revolving credit facility from $125 million to $140 million and refinanci...
Business Operations and StrategyM&A Transactions
HF Foods Expands Internationally with Searay Foods Acquisition
Positive
Jul 23, 2026
HF Foods Group Inc., a leading U.S. distributor of international foodservice products to Asian restaurants and related customers, is expanding its footprint beyond its domestic base by acquiring Canadian seafood specialist Searay Foods and related...
Business Operations and StrategyRegulatory Filings and Compliance
HF Foods Adopts New Series AA Preferred Stock Designation
Neutral
Jun 13, 2026
On June 11, 2026, HF Foods Group’s board approved a Certificate of Designation outlining the rights, powers and preferences of a new Series AA Participating Preferred Stock, formalizing a detailed structure for this class of preferred equity...
Business Operations and Strategy
HF Foods Adopts Limited-Duration Stockholder Rights Plan
Neutral
Jun 12, 2026
On June 11, 2026, HF Foods Group Inc. announced that its board of directors has adopted a limited duration stockholder rights plan and will distribute one right for each share of common stock to holders of record as of June 22, 2026. The move foll...
Executive/Board ChangesShareholder Meetings
HF Foods Faces Shareholder Pushback on Pay and Governance
Negative
Jun 11, 2026
On June 5, 2026, HF Foods Group Inc. held its annual meeting of stockholders, where all director nominees except Xi “Felix” Lin and Jeffery Taylor failed to receive a majority of votes but were asked by the board to continue serving af...
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.