HF Foods GroupHFFG -7.82%61 Gross Margin % is 16.19% as of Mar. 2026, which is 5% below its 10-year median of 17.08. GuruFocus rates HFFG with a GF Score™ of 61/100 and a GF Value™ of $3.62 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 305 Retail - Defensive companies, HF Foods Group ranks worse than 71.8% on this metric.
HF Foods Group Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for HF Foods Group's Gross Margin % or its related term are showing as below:
HFFG'
s Gross Margin % Range Over the Past 10 Years
Min: 14.87 Med: 17.08 Max: 19.01
Current: 16.68
During the past 9 years, the highestGross Margin % of HF Foods Group was 19.01%. The lowest was 14.87%. And the median was 17.08%.
HFFG's Gross Margin % is ranked worse than 71.8% of 305
companies
in the Retail - Defensive industry
Industry Median: 24.14
vs HFFG: 16.68
HF Foods Group had a gross margin of 16.19% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for HF Foods Group was -1.60% per year.
HF Foods Group (NAS:HFFG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
HF Foods Group had a gross margin of 16.19% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
HF Foods Group Gross Margin % Related Terms
HF Foods Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for HF Foods Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Food Distribution subindustry, HF Foods Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HF Foods Group Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, HF Foods Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HF Foods Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
HF Foods Group (HFFG) has a Gross Margin % of 16.19% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HF Foods Group and its competitors. This is near median its historical median of 17.08. Over the past decade, HF Foods Group's Gross Margin % has ranged from 14.87 to 19.01. According to the industry distribution chart, HF Foods Group ranks #219 out of 305 companies in the Retail - Defensive industry, placing it in the top 71.8%.
Is HF Foods Group's Gross Margin % too high?
HF Foods Group's current Gross Margin % of 16.19% is near median its 10-year median of 17.08. Over the past 10 years, this metric has ranged from a low of 14.87 to a high of 19.01. The Retail - Defensive industry median Gross Margin % is 24.14. HF Foods Group's value of 16.19% is 32.9% below this industry median. Based on the distribution chart, HF Foods Group ranks #219 out of 305 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, HF Foods Group has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HF Foods Group's Gross Margin % compare to DIT and HCIL?
According to the Retail - Defensive industry distribution chart, HF Foods Group ranks #219 out of 305 companies for Gross Margin %. This places HF Foods Group in the lower half of its industry. The industry median Gross Margin % is 24.14. HF Foods Group's value of 16.19% is 32.9% below this benchmark. Historically, HF Foods Group's own Gross Margin % has ranged from 14.87 to 19.01 over the past decade. While the company's 10-year median is 17.08 vs. the industry median of 24.14, HF Foods Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HF Foods Group's current Gross Margin % of 16.19% is 32.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on HF Foods Group and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HF Foods Group's current Gross Margin % is 16.19%, which is near median its own 10-year median of 17.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HF Foods Group stock overvalued right now?
Based on GuruFocus' analysis, HF Foods Group (HFFG) is currently considered Possible Value Trap. The stock's GF Value™ is $3.62, compared to a current price of $1.68 — trading 53.6% below its estimated fair value. The current Gross Margin % is 16.19%, which is near median its 10-year median of 17.08 and 32.9% below the Retail - Defensive industry median of 24.14. HF Foods Group's overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For HF Foods Group (HFFG), the current Gross Margin % is 16.19% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HF Foods Group (HFFG) Overvalued in 2026?
Based on GuruFocus' analysis, HF Foods Group stock appears to be undervalued.
The current stock price of $1.68 is trading 53.6% below its estimated GF Value™ of $3.62.
GuruFocus considers HF Foods Group to be Possible Value Trap.
Key valuation signals for HFFG:
Gross Margin %: 16.19% (near median its 10-year median of 17.08)
GF Value™: $3.62 vs. price of $1.68 (53.6% below fair value)
Industry Position: 32.9% below the Retail - Defensive median (#219 of 305)
No single metric tells the full story. See the HFFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HF Foods Group Inc is an Asian food service distributor that markets and distributes fresh produce, frozen and dry food, and non-food products to Asian restaurants and other foodservice customers throughout the United States. The company's business consists of one operating segment: HF Group, which operates solely in the United States. The company's product list consists of Meat, Poultry & Seafood, Sauces & Oils, Takeout Items (Boxes, Chopsticks & Utensils), Raw Ingredients (Flour, Cornstarch, Spices), Cleaning Supplies, and Rice & Grains.
61GF Score
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