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 has a bad profitability rating. Also its financial health evaluation is rather negative. HFFG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
The reported net income has been mixed in the past 5 years: HFFG reported negative net income in multiple years.
HFFG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HFFG's Return On Assets of -8.13% is on the low side compared to the rest of the industry. HFFG is outperformed by 77.50% of its industry peers.
HFFG has a Return On Equity of -20.13%. This is in the lower half of the industry: HFFG underperforms 72.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.81%, HFFG is doing worse than 70.00% of the companies in the same industry.
HFFG had an Average Return On Invested Capital over the past 3 years of 1.55%. This is significantly below the industry average of 8.22%.
The last Return On Invested Capital (1.81%) for HFFG is above the 3 year average (1.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.13% | ||
| ROE | -20.13% | ||
| ROIC | 1.81% |
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
With a Operating Margin value of 0.91%, HFFG is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
HFFG's Operating Margin has declined in the last couple of years.
The Gross Margin of HFFG (17.13%) is worse than 72.50% of its industry peers.
HFFG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.91% | ||
| PM (TTM) | N/A | ||
| GM | 17.13% |
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.
HFFG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HFFG has more shares outstanding
Compared to 1 year ago, HFFG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that HFFG is in the distress zone and has some risk of bankruptcy.
HFFG has a worse Altman-Z score (1.68) than 80.00% of its industry peers.
HFFG has a debt to FCF ratio of 9.97. This is a negative value and a sign of low solvency as HFFG would need 9.97 years to pay back of all of its debts.
HFFG has a Debt to FCF ratio of 9.97. This is in the lower half of the industry: HFFG underperforms 60.00% 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.
With a Debt to Equity ratio value of 0.79, HFFG perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 9.97 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.24
WACC7.61%
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.
With a Current ratio value of 1.19, HFFG perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 0.42 indicates that HFFG may have some problems paying its short term obligations.
HFFG has a worse Quick ratio (0.42) than 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
HFFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.05%.
Looking at the last year, HFFG shows a small growth in Revenue. The Revenue has grown by 4.88% 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)-19.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y14.67%
Revenue growth 5Y25.36%
Sales Q2Q%4.14%
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HFFG is valuated reasonably with a Price/Earnings ratio of 10.76.
87.50% 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 26.86. HFFG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.16 indicates a reasonable valuation of HFFG.
Based on the Price/Forward Earnings ratio, HFFG is valued cheaply inside the industry as 97.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.94. HFFG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 8.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HFFG is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HFFG indicates a rather cheap valuation: HFFG is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
HFFG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as HFFG's earnings are expected to grow with 36.75% in the coming years.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y36.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for HFFG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.66
+0.17 (+4.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners20.02%
Inst Owner Change8.18%
Ins Owners14.42%
Ins Owner Change1.76%
Market Cap201.34M
Analysts82.86
Price Target7.14 (95.08%)
Short Float %1.3%
Short Ratio6.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)3.24%
DP-1.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)44.04%
Min EPS beat(2)-47.21%
Max EPS beat(2)135.29%
EPS beat(4)2
Avg EPS beat(4)8.98%
Min EPS beat(4)-71.99%
Max EPS beat(4)135.29%
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)0
Avg Revenue beat(2)-2.64%
Min Revenue beat(2)-4.69%
Max Revenue beat(2)-0.6%
Revenue beat(4)2
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)3.97%
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)0%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)0%
EPS NY rev (3m)30%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 8.16 | ||
| P/S | 0.17 | ||
| P/FCF | 9.98 | ||
| P/OCF | 6.08 | ||
| P/B | 0.84 | ||
| P/tB | 4.85 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)0.34
EY9.29%
EPS(NY)0.45
Fwd EY12.26%
FCF(TTM)0.37
FCFY10.02%
OCF(TTM)0.6
OCFY16.45%
SpS22.12
BVpS4.36
TBVpS0.75
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.13% | ||
| ROE | -20.13% | ||
| ROCE | 2.62% | ||
| ROIC | 1.81% | ||
| ROICexc | 1.87% | ||
| ROICexgc | 3.24% | ||
| OM | 0.91% | ||
| PM (TTM) | N/A | ||
| GM | 17.13% | ||
| FCFM | 1.66% |
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-Score4
Asset Turnover2.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 9.97 | ||
| Debt/EBITDA | 4.91 | ||
| Cap/Depr | 47.2% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.68 |
F-Score4
WACC7.61%
ROIC/WACC0.24
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)-19.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y10.5%
EPS Next 2Y36.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.88%
Revenue growth 3Y14.67%
Revenue growth 5Y25.36%
Sales Q2Q%4.14%
Revenue Next Year3.73%
Revenue Next 2Y4.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30%
EBIT growth 3Y-34.29%
EBIT growth 5Y0.16%
EBIT Next Year164.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.62%
FCF growth 3Y-12.96%
FCF growth 5YN/A
OCF growth 1Y25.7%
OCF growth 3Y8.94%
OCF growth 5Y37.12%