HF FOODS GROUP INC (HFFG) Stock Fundamental Analysis
NASDAQ:HFFG - Nasdaq - US40417F1093 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to HFFG. HFFG was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. HFFG may be in some trouble as it scores bad on both profitability and health. HFFG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
HFFG had positive earnings in the past year.
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.
HFFG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HFFG has a Return On Assets of -8.50%. This is amonst the worse of the industry: HFFG underperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of -20.78%, HFFG is doing worse than 72.50% of the companies in the same industry.
HFFG has a Return On Invested Capital of 1.57%. This is in the lower half of the industry: HFFG underperforms 70.00% of its industry peers.
HFFG had an Average Return On Invested Capital over the past 3 years of 1.55%. This is significantly below the industry average of 8.23%.
The 3 year average ROIC (1.55%) for HFFG is below the current ROIC(1.57%), indicating increased profibility in the last year.
| 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 70.00% 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 75.00% 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.
The number of shares outstanding for HFFG has been increased compared to 5 years ago.
The debt/assets ratio for HFFG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that HFFG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.60, HFFG is not doing good in the industry: 77.50% of the companies in the same industry are doing better.
The Debt to FCF ratio of HFFG is 22.06, which is on the high side as it means it would take HFFG, 22.06 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 22.06, HFFG is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
HFFG has a Debt/Equity ratio of 0.79. This is a neutral value indicating HFFG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, HFFG is in line with its industry, outperforming 42.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 22.06 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.21
WACC7.63%
2.3 Liquidity
A Current Ratio of 1.19 indicates that HFFG should not have too much problems paying its short term obligations.
HFFG has a Current ratio of 1.19. This is comparable to the rest of the industry: HFFG outperforms 60.00% 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.
The Quick ratio of HFFG (0.50) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
HFFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -2070.38%.
HFFG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
The Revenue has been growing by 25.36% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 36.75% on average over the next years. This is a very strong growth
Based on estimates for the next years, HFFG will show a small growth in Revenue. The Revenue will grow by 4.10% on average per year.
EPS Next Y10.5%
EPS Next 2Y36.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.73%
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
With a Price/Earnings ratio of 11.50, the valuation of HFFG can be described as very reasonable.
85.00% of the companies in the same industry are more expensive than HFFG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.93. HFFG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.66 indicates a rather cheap valuation of HFFG.
100.00% of the companies in the same industry are more expensive than HFFG, based on the Price/Forward Earnings ratio.
HFFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 6.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HFFG is valued a bit cheaper than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HFFG is valued a bit cheaper than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.62 | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
HFFG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HFFG's earnings are expected to grow with 36.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y36.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HFFG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.99
-0.04 (-1.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.59%
Inst Owner Change0.13%
Ins Owners14.42%
Ins Owner Change1.73%
Market Cap158.50M
Analysts82.86
Price Target7.14 (138.8%)
Short Float %1.4%
Short Ratio5.35
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)1
Avg EPS beat(2)-13.69%
Min EPS beat(2)-47.21%
Max EPS beat(2)19.83%
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)-0.36%
Min Revenue beat(2)-4.69%
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)0%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-61.54%
EPS NY rev (1m)-8.77%
EPS NY rev (3m)-48%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 6.66 | ||
| P/S | 0.13 | ||
| P/FCF | 17.62 | ||
| P/OCF | 7.04 | ||
| P/B | 0.67 | ||
| P/tB | 3.81 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)0.26
EY8.7%
EPS(NY)0.45
Fwd EY15.01%
FCF(TTM)0.17
FCFY5.67%
OCF(TTM)0.42
OCFY14.21%
SpS22.72
BVpS4.49
TBVpS0.78
PEG (NY)1.1
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 | 1.6 |
F-Score3
WACC7.63%
ROIC/WACC0.21
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 Y10.5%
EPS Next 2Y36.75%
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 Year3.73%
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%