HF Foods Group Inc.

HFFG

Consumer DefensiveFood DistributionNASDAQ

$1.89

Market Cap: $100.25M

HF Foods Group Inc. (HFFG) Valuation Summary

Updated May 11, 2026 16:02

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$2.19 – $194.50	$23.95	+1167.2%
Revenue DCF 10Y	$2.19 – $251.09	$35.38	+1771.8%
▸ Trading Multiples
EV/Revenue	$7.22 – $20.81	$9.06	+379.3%

Valuation History

DCF Analysis

HF Foods Group Inc. (HFFG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$35.38

Market Price

$1.89

Upside / Downside

+1771.8%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from 0.5% to a target of 7.6% over 5 years, discounted at a WACC of 5.9%, HF Foods Group Inc. (HFFG) has an intrinsic value of $35.38 per share (range: $2.19 – $251.09).

Key Assumptions

Current Operating Margin

0.5%

Target Operating Margin

7.6%

WACC

5.9%

Terminal Growth Rate

2.5%

Historical CapEx/Rev

0.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.3%

Tax Rate

0.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,267	3.2%	1.9%	24	24	29	(16)	16	21	20
2027	1,302	2.8%	3.3%	43	43	29	(23)	3	46	43
2028	1,451	11.4%	4.8%	69	69	33	(34)	13	55	48
2029	1,617	11.4%	6.2%	100	100	37	(46)	15	76	62
2030	1,782	10.2%	7.6%	136	136	40	(60)	15	101	78
2031	1,943	9.0%	7.6%	148	148	44	(76)	14	102	74
2032	2,095	7.8%	7.6%	159	159	47	(93)	14	101	69
2033	2,233	6.6%	7.6%	170	170	51	(111)	12	98	64
2034	2,354	5.4%	7.6%	179	179	53	(129)	11	93	57
2035	2,453	4.2%	7.6%	187	187	56	(147)	9	86	50

Enterprise Value Bridge

Sum of PV(FCFF)565

Terminal Value (Gordon Growth at 2.5%)2,617

PV of Terminal Value1,522

Enterprise Value2,087

(–) Net Debt214

Equity Value1,873

(÷) Shares Outstanding53

Fair Value per Share$35.38

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
3.9%	$-6	$13	$92	$172	$251
4.9%	$-6	$7	$52	$97	$142
5.9%	$-6	$5	$35	$66	$97
6.9%	$-6	$3	$26	$50	$73
7.9%	$-6	$2	$21	$39	$58

Current price: $1.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 9.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

HF Foods Group Inc. (HFFG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$23.95

Market Price

$1.89

Upside / Downside

+1167.2%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

0.5%

Target Operating Margin

7.6%

WACC

5.9%

Terminal Growth Rate

2.5%

Historical CapEx/Rev

0.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.3%

Tax Rate

0.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,267	3.2%	1.9%	24	24	29	(23)	16	14	14
2027	1,302	2.8%	3.3%	43	43	29	(37)	3	33	30
2028	1,451	11.4%	4.8%	69	69	33	(57)	13	32	28
2029	1,617	11.4%	6.2%	100	100	37	(80)	15	42	34
2030	1,734	7.2%	7.6%	132	132	39	(104)	10	57	44

Enterprise Value Bridge

Sum of PV(FCFF)150

Terminal Value (Gordon Growth at 2.5%)1,723

PV of Terminal Value1,332

Enterprise Value1,482

(–) Net Debt214

Equity Value1,268

(÷) Shares Outstanding53

Fair Value per Share$23.95

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
3.9%	$-6	$2	$66	$130	$195
4.9%	$-6	$-0	$36	$73	$109
5.9%	$-6	$-1	$24	$49	$75
6.9%	$-6	$-2	$17	$37	$56
7.9%	$-6	$-2	$13	$29	$44

Current price: $1.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 9.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$9.06

Market Price

$1.89

Upside / Downside

+379.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), HF Foods Group Inc. (HFFG) has a fair value of $9.06 based on 8 comparable companies in the Food Distribution industry.

EV/Revenue Valuation — Food Distribution

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
HF Foods Group Inc.HFFG	100	0.3x	0.3x
Acme United CorporationACU	158	1.0x	1.0x
Legacy Education Inc.LGCY	148	2.3x	2.3x
Chegg, Inc.CHGG	130	0.5x	0.3x
Ispire Technology Inc.ISPR	100	0.6x	0.5x
AMCON Distributing CompanyDIT	84	0.1x	—
Skillsoft Corp.SKIL	73	1.1x	1.0x
LifeVantage CorporationLFVN	67	0.3x	0.3x
The Hain Celestial Group, Inc.HAIN	60	0.5x	0.6x
Industry Median		0.6x	0.6x
(*) Revenue		1,228	1,184
= Enterprise Value		706	681
(-) Net Debt		214	214
Equity Value		492	467
(/) Outstanding shares		53	53
Fair Price		$9	$9

Selected Fair Value (avg of trailing + forward)

$9.06

+379.3%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$2.19 – $194.50

$23.95

+1167.2%

Revenue DCF 10Y

$2.19 – $251.09

$35.38

+1771.8%

▸ Trading Multiples

EV/Revenue

$7.22 – $20.81

$9.06

+379.3%

DCF Analysis

HF Foods Group Inc. (HFFG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$35.38

Market Price

$1.89

Upside / Downside

+1771.8%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

0.5%

Target Operating Margin

7.6%

WACC

5.9%

Terminal Growth Rate

2.5%

Historical CapEx/Rev

0.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.3%

Tax Rate

0.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,267	3.2%	1.9%	24	24	29	(16)	16	21	20
2027	1,302	2.8%	3.3%	43	43	29	(23)	3	46	43
2028	1,451	11.4%	4.8%	69	69	33	(34)	13	55	48
2029	1,617	11.4%	6.2%	100	100	37	(46)	15	76	62
2030	1,782	10.2%	7.6%	136	136	40	(60)	15	101	78
2031	1,943	9.0%	7.6%	148	148	44	(76)	14	102	74
2032	2,095	7.8%	7.6%	159	159	47	(93)	14	101	69
2033	2,233	6.6%	7.6%	170	170	51	(111)	12	98	64
2034	2,354	5.4%	7.6%	179	179	53	(129)	11	93	57
2035	2,453	4.2%	7.6%	187	187	56	(147)	9	86	50

Enterprise Value Bridge

Sum of PV(FCFF)565

Terminal Value (Gordon Growth at 2.5%)2,617

PV of Terminal Value1,522

Enterprise Value2,087

(–) Net Debt214

Equity Value1,873

(÷) Shares Outstanding53

Fair Value per Share$35.38

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
3.9%	$-6	$13	$92	$172	$251
4.9%	$-6	$7	$52	$97	$142
5.9%	$-6	$5	$35	$66	$97
6.9%	$-6	$3	$26	$50	$73
7.9%	$-6	$2	$21	$39	$58

Current price: $1.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 9.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$9.06

Market Price

$1.89

Upside / Downside

+379.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), HF Foods Group Inc. (HFFG) has a fair value of $9.06 based on 8 comparable companies in the Food Distribution industry.

EV/Revenue Valuation — Food Distribution

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
HF Foods Group Inc.HFFG	100	0.3x	0.3x
Acme United CorporationACU	158	1.0x	1.0x
Legacy Education Inc.LGCY	148	2.3x	2.3x
Chegg, Inc.CHGG	130	0.5x	0.3x
Ispire Technology Inc.ISPR	100	0.6x	0.5x
AMCON Distributing CompanyDIT	84	0.1x	—
Skillsoft Corp.SKIL	73	1.1x	1.0x
LifeVantage CorporationLFVN	67	0.3x	0.3x
The Hain Celestial Group, Inc.HAIN	60	0.5x	0.6x
Industry Median		0.6x	0.6x
(*) Revenue		1,228	1,184
= Enterprise Value		706	681
(-) Net Debt		214	214
Equity Value		492	467
(/) Outstanding shares		53	53
Fair Price		$9	$9

Selected Fair Value (avg of trailing + forward)

$9.06

+379.3%