NasdaqCM:HFFG

Stock Analysis Report

Executive Summary

HF Foods Group Inc. markets and distributes fresh produces, frozen and dry food products, and non-food products primarily to Asian/Chinese restaurants and other food service customers in the Southeast region of the United States.


Snowflake Analysis

Mediocre balance sheet with poor track record.


Similar Companies

Share Price & News

How has HF Foods Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HFFG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

HFFG

0.6%

US Consumer Retailing

-1.1%

US Market


1 Year Return

44.6%

HFFG

17.6%

US Consumer Retailing

17.8%

US Market

Return vs Industry: HFFG exceeded the US Consumer Retailing industry which returned 17.6% over the past year.

Return vs Market: HFFG exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

HFFGIndustryMarket
7 Day2.6%0.6%-1.1%
30 Day13.3%2.5%1.5%
90 Day-19.7%0.3%6.6%
1 Year44.6%44.6%19.8%17.6%20.2%17.8%
3 Yearn/a48.6%39.0%47.5%38.1%
5 Yearn/a48.3%32.9%71.2%52.4%

Price Volatility Vs. Market

How volatile is HF Foods Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HF Foods Group undervalued compared to its fair value and its price relative to the market?

66.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HFFG ($18.88) is trading above our estimate of fair value ($0.01)

Significantly Below Fair Value: HFFG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HFFG is poor value based on its PE Ratio (67x) compared to the Consumer Retailing industry average (22.1x).

PE vs Market: HFFG is poor value based on its PE Ratio (67x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HFFG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HFFG is overvalued based on its PB Ratio (16x) compared to the US Consumer Retailing industry average (2.1x).


Next Steps

Future Growth

How is HF Foods Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.1%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as HF Foods Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has HF Foods Group performed over the past 5 years?

-10.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: HFFG has high quality earnings.

Growing Profit Margin: HFFG's current net profit margins (2.1%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if HFFG's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: HFFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HFFG had negative earnings growth (-10.6%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-6%).


Return on Equity

High ROE: Whilst HFFG's Return on Equity (26.19%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HF Foods Group's financial position?


Financial Position Analysis

Short Term Liabilities: HFFG's short term assets ($55.7M) exceed its short term liabilities ($38.6M).

Long Term Liabilities: HFFG's short term assets ($55.7M) exceed its long term liabilities ($17.9M).


Debt to Equity History and Analysis

Debt Level: HFFG's debt to equity ratio (108.6%) is considered high.

Reducing Debt: Insufficient data to determine if HFFG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HFFG's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: HFFG's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet

Inventory Level: HFFG has a high level of physical assets or inventory.

Debt Coverage by Assets: HFFG's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is HF Foods Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HFFG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HFFG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HFFG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HFFG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HFFG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average board tenure


CEO

Zhou Ni (50yo)

1.1yrs

Tenure

US$400,000

Compensation

Mr. Zhou Min Ni has been Chairman at HF Foods Group Inc since August 22, 2018 and its Co-Chief Executive Officer since 2019. He served as Chief Executive Officer at HF Foods Group Inc since August 22, 2018 ...


CEO Compensation Analysis

Compensation vs Market: Zhou's total compensation ($USD400.00K) is below average for companies of similar size in the US market ($USD2.51M).

Compensation vs Earnings: Zhou's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Zhou Ni
Chairman & Co-CEO1.1yrsUS$400.00k13.2% $130.0m
Xiao Mou Zhang
Co-CEO, CFO & Director1.1yrsno data26.62% $262.1m
Hong Wang
Independent Director1.5yrsUS$10.00kno data
Zhehui Ni
Independent Director1.5yrsUS$10.00kno data
Xi Lin
Independent Director0.2yrsno datano data

1.5yrs

Average Tenure

46yo

Average Age

Experienced Board: HFFG's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Top Shareholders

Company Information

HF Foods Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HF Foods Group Inc.
  • Ticker: HFFG
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: US$984.499m
  • Shares outstanding: 52.15m
  • Website: https://www.hffoodsgroup.com

Number of Employees


Location

  • HF Foods Group Inc.
  • 6001 West Market Street
  • Greensboro
  • North Carolina
  • 27409
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HFFGNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 2018

Biography

HF Foods Group Inc. markets and distributes fresh produces, frozen and dry food products, and non-food products primarily to Asian/Chinese restaurants and other food service customers in the Southeast region of the United States. It also offers design and printing, and trucking services, as well as Chinese herb supplements. In addition, the company operates as a real estate holding company. HF Foods Group Inc. is headquartered in Greensboro, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:09
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.