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HF Foods Group
(NASDAQ:HFFG)
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Rating:45Neutral
Price Target:
$1.50
▼(-18.92% Downside)
Action:Reiterated
Date:09/19/26
The score is held down primarily by weak financial quality (TTM losses, declining margins, negative ROE, and negative TTM free cash flow) and bearish technical positioning (below major moving averages with negative MACD). The earnings call provides a partial offset through margin-improvement targets, a margin/EPS-accretive acquisition narrative, and improved liquidity, but near-term cost and pricing headwinds keep overall risk elevated.
Positive Factors
Sustained Revenue Growth
Six consecutive quarters of year-over-year revenue growth, together with a roughly $1.25 billion trailing revenue run-rate, indicates sustained customer demand and expanding scale. This growth can support better facility utilization, broader product coverage, and operating leverage if profitability improves.
Negative Factors
Persistent Margin Compression
The company has grown revenue without translating that expansion into consistent profitability, as gross margin has trended down and TTM earnings remain negative. Continued margin weakness limits internal reinvestment, reduces resilience to cost increases, and weakens the quality of reported growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Six consecutive quarters of year-over-year revenue growth, together with a roughly $1.25 billion trailing revenue run-rate, indicates sustained customer demand and expanding scale. This growth can support better facility utilization, broader product coverage, and operating leverage if profitability improves.
Read all positive factors
HF Foods Group (HFFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.16M
Dividend YieldN/A
Average Volume (3M)87.83K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth2.78%
EPS Growth28.68%
CountryUS
Employees952
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)-0.65
Shares Outstanding53,900,944
10 Day Avg. Volume96,522
30 Day Avg. Volume87,830
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 Upside197.30% 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
HF Foods Group primarily makes money by purchasing food and foodservice products from producers and manufacturers and reselling them to restaurants and other foodservice operators at a markup, generating revenue from product sales. Its key revenue...
HF Foods Group Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive strategic outlook: the company delivered record quarterly revenue and sustained top-line momentum, executed a strategic, margin-accretive acquisition (Sea Ray) and secured enhanced liquidity through an upsized refinancing. However, near-term margin pressure from tariffs, fuel costs, pricing concessions, and one-time items supporting GAAP profit create short-term profitability headwinds. Management emphasized ongoing transformation investments and M&A discipline, positioning the company for mid-term margin improvement.Positive Updates
Record Quarterly Revenue and Continued Growth
Net revenue increased 2.8% year-over-year to $323.8 million, the highest quarterly revenue in company history; this marks the sixth consecutive quarter of year-over-year net revenue growth and a trailing 12-month revenue run-rate of approximately $1.25 billion.
Negative Updates
Margin Compression — Gross Profit and Adjusted EBITDA
Gross profit was essentially flat at $55.0 million, but gross margin declined to 17.0% from 17.5% a year ago (down 0.5 percentage points). Adjusted EBITDA decreased 2% to $13.6M and adjusted EBITDA margin fell to 4.2% from 4.4% (down 0.2 percentage points).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Continued Growth
Net revenue increased 2.8% year-over-year to $323.8 million, the highest quarterly revenue in company history; this marks the sixth consecutive quarter of year-over-year net revenue growth and a trailing 12-month revenue run-rate of approximately $1.25 billion.
Read all positive updates
Company Guidance
Management reiterated a multi‑year target of a consolidated adjusted EBITDA margin of 4.5–5%+ over the next 3–5 years and said the Sea Ray deal (CAD 47.9M / ~ $35M base price, ~5x Sea Ray’s baseline adjusted EBITDA of CAD 9.6M / ~ $7M, mid‑teens EBITDA margins, ~15% revenue CAGR since 2019) is expected to close in Q3 (no later than Aug. 31), be accretive to margins and EPS from close, and will be paid with a mix of cash and HF stock with contingent earnouts tied to EBITDA over 2–3 years; they pointed to current operating metrics (Q2 net revenue $323.8M, +2.8% YoY, record quarter; adjusted EBITDA $13.6M, 4.2% margin; gross profit $55.0M, 17.0% margin; TTM revenue ~ $1.25B), disclosed cost and liquidity items (DS&A $52.2M, incremental fuel cost ~ $1.4M YoY, YTD CapEx $20.3M including $12.4M Chicago DC purchase and $2.8M solar with a 40% ITC), and noted enhanced financing capacity to fund growth (ABL increased to $140M, term loans refinanced to $125M, revolver matures July 2031, term loan July 2036) while remaining disciplined on further M&A.HF Foods Group Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
48
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25B | 1.23B | 1.20B | 1.15B | 1.17B | 796.88M |
| Gross Profit | 199.95M | 207.58M | 205.19M | 204.03M | 205.51M | 151.51M |
| EBITDA | 1.06M | -5.43M | -8.04M | 34.77M | 32.40M | 52.83M |
| Net Income | -34.61M | -38.84M | -48.51M | -2.17M | 460.00K | 22.14M |
Balance Sheet | ||||||
| Total Assets | 556.60M | 541.53M | 549.99M | 596.52M | 637.53M | 596.95M |
| Cash, Cash Equivalents and Short-Term Investments | 18.10M | 8.64M | 14.47M | 15.23M | 24.29M | 14.79M |
| Total Debt | 207.95M | 222.62M | 209.93M | 203.32M | 224.67M | 190.68M |
| Total Liabilities | 348.78M | 337.94M | 308.70M | 308.54M | 341.28M | 301.96M |
| Stockholders Equity | 206.77M | 202.05M | 239.29M | 286.66M | 291.81M | 290.95M |
Cash Flow | ||||||
| Free Cash Flow | -3.47M | 6.56M | 10.09M | -5.16M | 29.11M | 15.30M |
| Operating Cash Flow | 29.04M | 25.48M | 22.64M | -1.65M | 35.40M | 17.51M |
| Investing Cash Flow | -30.69M | -20.37M | -12.55M | -1.51M | -50.79M | -41.08M |
| Financing Cash Flow | 4.10M | -10.93M | -10.85M | -5.89M | 24.89M | 28.78M |
HF Foods Group Technical Analysis
Negative
1.85
Price Trends
1.67
Negative
1.75
Negative
1.88
Negative
Market Momentum
-0.05
Positive
39.76
Neutral
54.06
Neutral
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 1.85 is above the 20-day moving average (MA) of 1.65, above the 50-day MA of 1.67, and below the 200-day MA of 1.88, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 54.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.55B | 47.27 | 15.09% | ― | 11.16% | 30.78% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $14.49B | 39.97 | 7.63% | ― | 7.17% | 4.89% | |
52 Neutral | $2.74B | 32.67 | 5.32% | ― | -1.99% | ― | |
45 Neutral | $85.16M | -2.40 | -16.25% | ― | 2.78% | 28.68% | |
44 Neutral | $62.21M | 43.08 | 1.58% | 1.06% | 7.48% | 37.98% |
* Consumer Defensive Sector Average
HFFG
HF Foods Group
1.58
-1.15
-42.12%
DIT
Amcon Distributing Company
63.74
-12.25
-16.12%
CHEF
The Chefs' Warehouse
111.50
56.90
104.21%
UNFI
United Natural Foods
45.47
5.94
15.03%
PFGC
Performance Food Group
91.99
-10.36
-10.12%
HF Foods Group Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
HF Foods Ends ATM Equity Program and Disclosure
Negative
Sep 18, 2026
On September 17, 2026, HF Foods Group Inc. terminated its Sales Agreement with D.A. Davidson Co. and Roth Capital Partners, LLC, which had supported an at-the-market equity offering program established on September 25, 2025 and allowing up to $10...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
HF Foods Expands Internationally with Canadian Seafood Acquisition
Positive
Sep 3, 2026
On August 31, 2026, HF Foods Group completed the previously announced acquisition of Canadian seafood distributors Searay Foods Inc. and Morgan Foods Inc., marking the company’s first international expansion. HF Foods acquired 100% of the eq...
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...
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.