HF Foods Group Inc. — Earnings Quality Grade F
HFFG · Consumer Defensive
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 20 days, change +3 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 2.2%, CFFO 12.6%. Cash follows revenue
Expense Quality
Inventory 9.0% vs COGS 2.4%. Normal
CapEx growth 64.0% is >2x revenue growth 2.2%
SG&A/Gross Profit = 97.2%, exceeds 70%
Gross margin 16.9%, change -0.2pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.0B, FCF/NI = -0.13
Accruals ratio = -11.9%. Low accruals
Cash $0.0B covers only 4% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 75% of equity. Over 50%
Interest coverage = 0.5x (<2x). Financial stress
Other assets -21.7% vs revenue 2.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -24% YoY. Normal
Manipulation Score
M-Score = -2.95 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25