HF FOODS GROUP INC (HFFG) Stock Fundamental Analysis
NASDAQ:HFFG - Nasdaq - US40417F1093 - Common Stock - Currency: USD
Taking everything into account, HFFG scores 3 out of 10 in our fundamental rating. HFFG was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of HFFG have multiple concerns. HFFG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HFFG was profitable.
In the past year HFFG had a positive cash flow from operations.
In multiple years HFFG reported negative net income over the last 5 years.
Of the past 5 years HFFG 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.50%, HFFG is doing worse than 78.05% of the companies in the same industry.
HFFG's Return On Equity of -20.78% is on the low side compared to the rest of the industry. HFFG is outperformed by 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.57%, HFFG is doing worse than 68.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HFFG is significantly below the industry average of 7.94%.
The last Return On Invested Capital (1.57%) for HFFG is above the 3 year average (1.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.5% | ||
| ROE | -20.78% | ||
| ROIC | 1.57% |
ROA(3y)-3.04%
ROA(5y)-15.25%
ROE(3y)-6.95%
ROE(5y)-29%
ROIC(3y)1.55%
ROIC(5y)N/A
1.3 Margins
HFFG has a worse Operating Margin (0.80%) than 68.29% of its industry peers.
HFFG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 17.08%, HFFG is doing worse than 75.61% of the companies in the same industry.
HFFG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.8% | ||
| PM (TTM) | N/A | ||
| GM | 17.08% |
OM growth 3Y-42.7%
OM growth 5Y-20.1%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.52%
GM growth 5Y0.96%
2. Health
2.1 Basic Checks
HFFG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HFFG has been increased compared to 1 year ago.
Compared to 5 years ago, HFFG has more shares outstanding
HFFG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that HFFG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HFFG (1.66) is worse than 78.05% of its industry peers.
HFFG has a debt to FCF ratio of 22.06. This is a negative value and a sign of low solvency as HFFG would need 22.06 years to pay back of all of its debts.
HFFG has a Debt to FCF ratio of 22.06. This is in the lower half of the industry: HFFG underperforms 65.85% of its industry peers.
HFFG has a Debt/Equity ratio of 0.79. This is a neutral value indicating HFFG is somewhat dependend on debt financing.
HFFG has a Debt to Equity ratio (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 22.06 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.15
WACC10.54%
2.3 Liquidity
HFFG has a Current Ratio of 1.19. This is a normal value and indicates that HFFG is financially healthy and should not expect problems in meeting its short term obligations.
HFFG has a Current ratio of 1.19. This is comparable to the rest of the industry: HFFG outperforms 58.54% of its industry peers.
HFFG has a Quick Ratio of 1.19. This is a bad value and indicates that HFFG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.50, HFFG is doing worse than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for HFFG have decreased strongly by -2070.38% in the last year.
Looking at the last year, HFFG shows a small growth in Revenue. The Revenue has grown by 4.70% in the last year.
HFFG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.36% yearly.
EPS 1Y (TTM)-2070.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y14.67%
Revenue growth 5Y25.36%
Sales Q2Q%-0.08%
3.2 Future
Based on estimates for the next years, HFFG will show a very strong growth in Earnings Per Share. The EPS will grow by 32.00% on average per year.
HFFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.10% yearly.
EPS Next Y-15%
EPS Next 2Y32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.97%
Revenue Next 2Y4.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.08 indicates a correct valuation of HFFG.
Compared to the rest of the industry, the Price/Earnings ratio of HFFG indicates a somewhat cheap valuation: HFFG is cheaper than 75.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, HFFG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 8.75, the valuation of HFFG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HFFG is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
HFFG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HFFG is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
60.98% of the companies in the same industry are more expensive than HFFG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.57 | ||
| EV/EBITDA | 8.62 |
4.3 Compensation for Growth
HFFG's earnings are expected to grow with 32.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HFFG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.66
+0.08 (+2.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.11%
Inst Owner Change6.04%
Ins Owners15.36%
Ins Owner Change1.73%
Market Cap194.02M
Analysts82.86
Price Target7.14 (95.08%)
Short Float %1.39%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)3.24%
DP-1.01%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.54%
Min EPS beat(2)19.83%
Max EPS beat(2)37.25%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-4.62%
Max Revenue beat(2)3.97%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)16.67%
EPS NQ rev (1m)-53.85%
EPS NQ rev (3m)-45.45%
EPS NY rev (1m)-60%
EPS NY rev (3m)-53.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 8.75 | ||
| P/S | 0.16 | ||
| P/FCF | 21.57 | ||
| P/OCF | 8.61 | ||
| P/B | 0.82 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | 8.62 |
EPS(TTM)0.26
EY7.1%
EPS(NY)0.42
Fwd EY11.43%
FCF(TTM)0.17
FCFY4.64%
OCF(TTM)0.42
OCFY11.61%
SpS22.72
BVpS4.49
TBVpS0.78
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.5% | ||
| ROE | -20.78% | ||
| ROCE | 2.26% | ||
| ROIC | 1.57% | ||
| ROICexc | 1.63% | ||
| ROICexgc | 2.81% | ||
| OM | 0.8% | ||
| PM (TTM) | N/A | ||
| GM | 17.08% | ||
| FCFM | 0.75% |
ROA(3y)-3.04%
ROA(5y)-15.25%
ROE(3y)-6.95%
ROE(5y)-29%
ROIC(3y)1.55%
ROIC(5y)N/A
ROICexc(3y)1.61%
ROICexc(5y)N/A
ROICexgc(3y)3.33%
ROICexgc(5y)N/A
ROCE(3y)2.21%
ROCE(5y)N/A
ROICexcg growth 3Y-38.12%
ROICexcg growth 5Y-10.53%
ROICexc growth 3Y-32.66%
ROICexc growth 5Y10.57%
OM growth 3Y-42.7%
OM growth 5Y-20.1%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.52%
GM growth 5Y0.96%
F-Score3
Asset Turnover2.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 22.06 | ||
| Debt/EBITDA | 5.15 | ||
| Cap/Depr | 50.58% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 1.66 |
F-Score3
WACC10.54%
ROIC/WACC0.15
Cap/Depr(3y)28.6%
Cap/Depr(5y)20.21%
Cap/Sales(3y)0.63%
Cap/Sales(5y)0.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2070.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y-15%
EPS Next 2Y32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.7%
Revenue growth 3Y14.67%
Revenue growth 5Y25.36%
Sales Q2Q%-0.08%
Revenue Next Year3.97%
Revenue Next 2Y4.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-17.42%
EBIT growth 3Y-34.29%
EBIT growth 5Y0.16%
EBIT Next Year156.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-69.5%
FCF growth 3Y-12.96%
FCF growth 5YN/A
OCF growth 1Y-33.23%
OCF growth 3Y8.94%
OCF growth 5Y37.12%