📊 HFFG Key Takeaways
Is HF Foods Group Inc. (HFFG) a Good Investment?
HF Foods faces critical financial distress with an interest coverage ratio of 0.4x, indicating operating income cannot service its debt obligations. The company generates zero free cash flow despite positive operating cash flow, with capex consuming all cash generation, while collapsed operating margins of 0.3% provide no buffer in the competitive wholesale grocery sector.
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
- Debt-to-equity ratio of 0.49x indicates controlled leverage relative to equity base
- Gross margin of 16.2% is acceptable for wholesale grocery distribution business
- Generated positive operating cash flow of $15.3M in latest period
- 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
- Interest coverage ratio of 0.4x - operating income cannot cover debt interest expense, creating insolvency risk
- Free cash flow essentially zero while capex matches operating cash generation, leaving nothing for debt reduction or contingencies
- Operating margin of 0.3% is critically thin with no operational flexibility against margin compression
- Quick ratio of 0.49x and only $11.1M cash indicate severe liquidity constraints
- ROE of 0.6% and ROA of 0.2% demonstrate capital is deployed inefficiently
- 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
- Interest coverage ratio must improve above 1.0x to demonstrate debt sustainability
- Free cash flow must turn positive to validate business model viability
- Operating margin expansion needed above 0.5% minimum to maintain competitive position
- Cash position and working capital trends given tight quick ratio
- Operating margin (EBIT)
- Interest coverage
HF Foods Group Inc. (HFFG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
HF Foods Group Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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. has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $298.4M | $1.2M | $0.02 |
| 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 |
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 (SELL) and ChatGPT (SELL) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HFFG's key strengths?
Claude: Debt-to-equity ratio of 0.49x indicates controlled leverage relative to equity base. Gross margin of 16.2% is acceptable for wholesale grocery distribution business. 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: Interest coverage ratio of 0.4x - operating income cannot cover debt interest expense, creating insolvency risk. Free cash flow essentially zero while capex matches operating cash generation, leaving nothing for debt reduction or contingencies. 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 $312.0M.
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 $0.02.
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 May 2026, HF Foods Group Inc. has a SELL rating with 78% 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 0.6% (sector avg: 15%), net margin of 0.4% (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 $15.3M, with capital expenditures of $15.3M. FCF margin is 0.0%.
How does HFFG compare to other Market stocks?
Vs Default sector averages: Net margin 0.4% (avg: 12%), ROE 0.6% (avg: 15%), current ratio 1.11 (avg: 1.8).