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HF Foods Group
(NASDAQ:HFFG)
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Rating:46Neutral
Price Target:
$1.50
▼(-18.92% Downside)
Action:Reiterated
Date:08/11/26
The score is held down primarily by weak financial performance (loss-making TTM, margin compression, and negative free cash flow) and bearish technicals (below major moving averages with negative MACD). Earnings-call commentary is a partial offset due to record revenue, improved financing flexibility, and a potentially margin-accretive acquisition, but near-term cost/tariff pressures and execution risk keep the overall score below average.
Positive Factors
Sustained Revenue Growth
Consistent revenue expansion indicates durable customer demand and improving scale across HF Foods’ distribution network. Continued growth can strengthen route density, warehouse utilization and purchasing leverage, supporting future operating efficiency.
Negative Factors
Persistent Profitability Weakness
Strong sales growth has not translated into durable earnings because gross-margin erosion and negative operating profitability continue to weigh on returns. Sustained margin weakness limits reinvestment capacity and leaves the business vulnerable to cost inflation.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Consistent revenue expansion indicates durable customer demand and improving scale across HF Foods’ distribution network. Continued growth can strengthen route density, warehouse utilization and purchasing leverage, supporting future operating efficiency.
Read all positive factors
HF Foods Group (HFFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$100.26M
Dividend YieldN/A
Average Volume (3M)84.22K
Price to Earnings (P/E)―
Beta (1Y)0.93
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. 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 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
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: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 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $401.47M | 15.59 | 14.69% | 3.09% | 20.07% | -4.20% | |
70 Outperform | $4.56B | 47.06 | 15.09% | ― | 11.16% | 30.78% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $16.53B | 44.55 | 7.63% | ― | 7.17% | 4.89% | |
50 Neutral | $2.88B | -76.66 | -2.43% | ― | -3.22% | 44.69% | |
46 Neutral | $100.26M | -2.85 | -16.25% | ― | 2.78% | 28.68% | |
46 Neutral | $69.79M | 52.25 | 1.58% | 1.03% | 7.48% | 37.98% |
* Consumer Defensive Sector Average
HFFG
HF Foods Group
1.80
-1.59
-46.90%
DIT
Amcon Distributing Company
69.00
-8.76
-11.27%
WILC
Willi Food Inte
26.25
6.68
34.17%
CHEF
The Chefs' Warehouse
111.27
48.36
76.86%
UNFI
United Natural Foods
47.26
19.34
69.27%
PFGC
Performance Food Group
102.12
1.14
1.13%
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.