HF Foods Group Inc (HFFG)
NASDAQ:HFFG
Want to see HFFG full AI Analyst Report?
Top Page
HF Foods Group
(NASDAQ:HFFG)
Select Model
Select Model
Rating:46Neutral
Price Target:
$1.50
▼(-42.08% Downside)
Action:Reiterated
Date:06/27/26
The score is held back primarily by weak financial performance—thin margins, recent losses, and sharply weaker free cash flow—despite some balance-sheet improvement. Technicals also remain bearish with the stock in a downtrend, even if oversold. The earnings call was moderately constructive (operational milestones and profitability improvement) but acknowledged ongoing cost pressures, while corporate events add mixed signals with governance pushback partly offset by improved credit facility terms.
Positive Factors
Market Position & Addressable Market
Being the largest specialist in the U.S. Asian foodservice niche with ~ $1B revenue inside a ~ $50B addressable market gives HF Foods a durable runway. Scale supports supplier access, specialized product assortment, and cross-sell opportunities that favor sustained share gains and long-term organic growth.
Negative Factors
Profitability & Margin Pressure
Margin compression and persistent thin operating profitability indicate structural pressure converting revenue into sustainable earnings. A higher mix of lower-margin seafood, tariff-driven landed-cost volatility, and distribution cost headwinds can keep gross and operating margins constrained for multiple quarters absent material pricing power or mix shift.
Read all positive and negative factors
Positive Factors
Negative Factors
Market Position & Addressable Market
Being the largest specialist in the U.S. Asian foodservice niche with ~ $1B revenue inside a ~ $50B addressable market gives HF Foods a durable runway. Scale supports supplier access, specialized product assortment, and cross-sell opportunities that favor sustained share gains and long-term organic growth.
Read all positive factors
HF Foods Group (HFFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$88.23M
Dividend YieldN/A
Average Volume (3M)84.22K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth3.11%
EPS Growth27.70%
CountryUS
Employees1,015
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 Cap2.40
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda-203.05
Forecast
1Y Price Target
$5.50Price Target Upside112.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.14
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 12, 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 Technical Analysis
Negative
2.59
Price Trends
1.93
Negative
1.89
Negative
2.18
Negative
Market Momentum
-0.05
Positive
33.54
Neutral
21.51
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 2.59 is above the 20-day moving average (MA) of 1.85, above the 50-day MA of 1.93, and above the 200-day MA of 2.18, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 33.54 is Neutral, neither overbought nor oversold. The STOCH value of 21.51 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $448.76M | 14.90 | 17.27% | 3.55% | 18.26% | 40.02% | |
70 Outperform | $3.91B | 46.56 | 13.54% | ― | 10.01% | 22.30% | |
66 Neutral | $17.35B | 52.09 | 7.13% | ― | 8.45% | -12.95% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $66.37M | 97.14 | 0.38% | 0.90% | 4.89% | -71.27% | |
57 Neutral | $2.97B | -78.49 | -2.43% | ― | -3.22% | 44.69% | |
46 Neutral | $88.23M | -2.44 | -16.27% | ― | 3.11% | 27.70% |
* Consumer Defensive Sector Average
HFFG
HF Foods Group
1.65
-1.53
-48.11%
DIT
Amcon Distributing Company
68.00
-4.76
-6.54%
WILC
Willi Food Inte
32.22
14.04
77.28%
CHEF
The Chefs' Warehouse
95.92
32.11
50.32%
UNFI
United Natural Foods
49.13
25.82
110.77%
PFGC
Performance Food Group
110.44
22.97
26.26%
HF Foods Group Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
HF Foods Group Amends and Extends Revolving Credit Facility
Positive
Apr 3, 2026
On March 30, 2026, HF Foods Group Inc., together with BR Global Holdings, Inc. and certain subsidiaries, entered into a Fifth Amendment to its Third Amended and Restated Credit Agreement with JPMorgan Chase Bank as administrative agent and a syndi...
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.