HF Foods Group (HFFG) AI Stock Analysis

• Market Cap: $101.31M
• Dividend Yield: N/A
• Average Volume (3M): 84.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• 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: 3.23
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.57
• Enterprise Value/Ebitda: -54.51
• 1Y Price Target: $7.00
• Price Target Upside: 170.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.22
• Revenue Forecast (FY): $1.23B

• Rating: 56 Neutral
• Price Target: $2.00 ▼(-22.78% Downside)

HF Foods Group's overall stock score reflects a mix of challenges and opportunities. The most significant factor is the company's financial performance, which is hindered by negative profit margins and cash flow issues. However, the positive outlook from the earnings call and strategic corporate events, such as the acquisition of a new facility, provide a foundation for potential improvement. Technical indicators suggest some bullish momentum, but valuation metrics highlight ongoing profitability concerns.

Positive Factors

Strong Revenue Growth

A 67% TTM revenue increase indicates durable demand expansion and successful market penetration in ethnic food distribution. Higher volumes can drive scale economies across procurement and logistics, supporting long-term margin recovery if cost structure and mix are managed.

Adjusted EBITDA Improvement

A 41.5% rise in adjusted EBITDA reflects improving operational leverage and cost control. This suggests the business is beginning to convert top-line growth into operating profitability, which is durable if efficiencies from process changes and network optimization are maintained.

Strategic Operational Investments

Network investments—companywide ERP, Atlanta cold-storage expansion, and Chicago warehouse acquisition—strengthen distribution capacity and visibility. These structural enhancements reduce per-unit logistics costs, enable cross-selling, and support scalable growth over multiple quarters.

Negative Factors

Negative Profitability Trends

Persistent negative net margins and weakening operating margins indicate the company struggles to convert sales into lasting profits. This undermines return on invested capital and limits internal funding for expansion, making sustained shareholder value creation challenging.

Declining Free Cash Flow Growth

Negative free cash flow growth reduces capacity to reinvest, repay debt, or absorb shocks. Even with positive operating cash relative to net income, declining FCF is a structural constraint on capital allocation and increases dependence on external financing for strategic investments.

Margin Pressure from Mix and Tariffs

A shift toward lower-margin product mix (notably seafood) plus tariff and macro pressures are structural headwinds to gross margins. Without stronger pricing power or mix reversal, these factors can persistently compress margins and constrain sustainable profitability.

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: Negative
• Last Price: 2.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 2.59 is above the 20-day moving average (MA) of 2.15, above the 50-day MA of 2.32, and below the 200-day MA of 2.98, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 27.21 is Positive, neither overbought nor oversold. The STOCH value of 8.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$402.31M	15.17	15.15%	3.55%	9.33%	72.31%
PFGC	65 Neutral	$14.97B	45.89	7.42%	―	10.55%	-23.38%
CHEF	64 Neutral	$2.56B	36.37	14.12%	―	8.88%	54.12%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HFFG	56 Neutral	$101.31M	-2.22	-17.40%	―	4.10%	-2241.30%
UNFI	52 Neutral	$2.27B	-22.33	-6.37%	―	1.45%	-5.49%
DIT	48 Neutral	$70.58M	67.50	0.51%	0.90%	3.90%	-87.36%