📊 HFFG Key Takeaways
Is HF Foods Group Inc. (HFFG) a Good Investment?
HF Foods is unprofitable with deteriorating financial health, evidenced by negative operating income (-$33M), negative net income (-$38.8M), and critically weak liquidity (quick ratio 0.53x). The company generates minimal free cash flow (0.5% margin) while carrying $106.1M in long-term debt, creating significant financial distress risk despite modest revenue growth.
Despite modest revenue growth and slightly positive free cash flow, HF Foods remains unprofitable with negative operating and net margins and severely negative interest coverage. Liquidity is thin with limited cash and a sub-1.2x current ratio, leaving little cushion while leverage and interest burden pressure flexibility. Fundamentals need a clear turn to sustained operating profitability and stronger cash conversion.
Why Buy HF Foods Group Inc. Stock? HFFG Key Strengths
- Positive operating cash flow of $25.5M demonstrates underlying cash generation despite accounting losses
- Positive free cash flow of $6.6M continues to service obligations and fund capex
- Moderate debt-to-equity ratio of 0.53x limits financial leverage risk relative to equity base
- Large revenue base with modest YoY growth
- Positive operating and free cash flow, albeit thin
- Moderate leverage with positive equity base
HFFG Stock Risks: HF Foods Group Inc. Investment Risks
- Unprofitable operations with negative operating margin (-2.7%), net margin (-3.2%), and negative ROE (-19.2%) and ROA (-7.2%)
- Critically low liquidity with quick ratio of 0.53x and minimal cash position ($8.6M) relative to $337.9M total liabilities
- Negative interest coverage ratio (-11.6x) indicates operational earnings insufficient to cover debt service obligations
- Razor-thin free cash flow margin (0.5%) provides minimal buffer for debt repayment, capex requirements, or operational disruptions
- Anemic revenue growth (2.2% YoY) with declining profitability indicates structural challenges in competitive wholesale grocery sector
- Persistent operating losses and negative margins
- Weak liquidity (current and quick ratios) with low cash
- Negative interest coverage indicating refinancing and solvency risk
Key Metrics to Watch
- Operating income progression toward positive territory and sustained profitability
- Cash position and quick ratio trends given liquidity constraints
- Free cash flow sufficiency relative to annual debt service and capex requirements
- Operating margin (EBIT)
- Interest coverage
HF Foods Group Inc. (HFFG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.5% FCF margin may limit capital allocation flexibility.
HFFG Profit Margin, ROE & Profitability Analysis
HFFG vs Market Sector: How HF Foods Group Inc. Compares
How HF Foods Group Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HF Foods Group Inc. Stock Overvalued? HFFG Valuation Analysis 2026
Based on fundamental analysis, HF Foods Group Inc. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HF Foods Group Inc. Balance Sheet: HFFG Debt, Cash & Liquidity
HFFG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: HF Foods Group Inc.'s revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.92 indicates the company is currently unprofitable.
HFFG Revenue Growth, EPS Growth & YoY Performance
HFFG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $298.4M | -$1.1M | $-0.02 |
| Q2 2025 | $302.3M | $17.0K | $0.00 |
| Q1 2025 | $295.7M | -$694.0K | $-0.01 |
| Q3 2024 | $281.5M | $1.9M | $0.03 |
| Q2 2024 | $292.3M | $17.0K | $0.00 |
| Q1 2024 | $293.9M | -$694.0K | $-0.01 |
| Q2 2023 | $281.5M | -$850.0K | $-0.02 |
| Q1 2023 | $278.2M | $3.1M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HF Foods Group Inc. Dividends, Buybacks & Capital Allocation
HFFG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for HF Foods Group Inc. (CIK: 0001680873)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HFFG
What is the AI rating for HFFG?
HF Foods Group Inc. (HFFG) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HFFG's key strengths?
Claude: Positive operating cash flow of $25.5M demonstrates underlying cash generation despite accounting losses. Positive free cash flow of $6.6M continues to service obligations and fund capex. ChatGPT: Large revenue base with modest YoY growth. Positive operating and free cash flow, albeit thin.
What are the risks of investing in HFFG?
Claude: Unprofitable operations with negative operating margin (-2.7%), net margin (-3.2%), and negative ROE (-19.2%) and ROA (-7.2%). Critically low liquidity with quick ratio of 0.53x and minimal cash position ($8.6M) relative to $337.9M total liabilities. ChatGPT: Persistent operating losses and negative margins. Weak liquidity (current and quick ratios) with low cash.
What is HFFG's revenue and growth?
HF Foods Group Inc. reported revenue of $1.2B.
Does HFFG pay dividends?
HF Foods Group Inc. does not currently pay dividends.
Where can I find HFFG SEC filings?
Official SEC filings for HF Foods Group Inc. (CIK: 0001680873) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HFFG's EPS?
HF Foods Group Inc. has a diluted EPS of $-0.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HFFG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HF Foods Group Inc. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HFFG stock overvalued or undervalued?
Valuation metrics for HFFG: ROE of -19.2% (sector avg: 15%), net margin of -3.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HFFG stock in 2026?
Our dual AI analysis gives HF Foods Group Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HFFG's free cash flow?
HF Foods Group Inc.'s operating cash flow is $25.5M, with capital expenditures of $18.9M. FCF margin is 0.5%.
How does HFFG compare to other Market stocks?
Vs Default sector averages: Net margin -3.2% (avg: 12%), ROE -19.2% (avg: 15%), current ratio 1.18 (avg: 1.8).