📊 HFFG Key Takeaways
Is HFFG a Good Investment? Thesis Analysis
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.
Why Buy 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
HFFG Investment Risks to Consider
- 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
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
HFFG Financial Metrics
💡 AI Analyst Insight
The relatively thin 0.5% FCF margin may limit capital allocation flexibility.
HFFG Profitability Ratios
HFFG vs Default Sector
How HF Foods Group Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HFFG Overvalued or Undervalued?
Based on fundamental analysis, HF Foods Group Inc. shows some fundamental concerns relative to the Default 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.
HFFG Balance Sheet & Liquidity
HFFG 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HFFG Quarterly 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.
HFFG Capital Allocation
HFFG SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 88% 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.
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.
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 STRONG SELL rating with 88% 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 STRONG 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 Default stocks?
Vs Default sector averages: Net margin -3.2% (avg: 12%), ROE -19.2% (avg: 15%), current ratio 1.18 (avg: 1.8).