HF Foods GroupHFFG -3.01%66 Operating Margin % is 0.33% as of Mar. 2026, which is 58% below its 10-year median of 0.78. GuruFocus rates HFFG with a GF Score™ of 66/100 and a GF Value™ of $3.62 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 310 Retail - Defensive companies, HF Foods Group ranks worse than 79.68% on this metric.
HF Foods Group (NAS:HFFG) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
HF Foods Group Operating Margin % Related Terms
HF Foods Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for HF Foods Group's Operating 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.
HFFG vs DIT, HCIL, TWG: Operating Margin % Comparison
For the Food Distribution subindustry, HF Foods Group's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, HF Foods Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where HF Foods Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
HF Foods Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
HF Foods Group (HFFG) has a Operating Margin % of 0.33% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on HF Foods Group and its competitors. This is 58% below median its historical median of 0.78. According to the industry distribution chart, HF Foods Group ranks #247 out of 310 companies in the Retail - Defensive industry, placing it in the top 79.7%.
Is HF Foods Group's Operating Margin % too high?
HF Foods Group's current Operating Margin % of 0.33% is 58% below median its 10-year median of 0.78. The Retail - Defensive industry median Operating Margin % is 3.28. HF Foods Group's value of 0.33% is 89.9% below this industry median. Based on the distribution chart, HF Foods Group ranks #247 out of 310 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, HF Foods Group has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HF Foods Group's Operating Margin % compare to DIT and HCIL?
According to the Retail - Defensive industry distribution chart, HF Foods Group ranks #247 out of 310 companies for Operating Margin %. This places HF Foods Group in the lower half of its industry. The industry median Operating Margin % is 3.28. HF Foods Group's value of 0.33% is 89.9% below this benchmark. While the company's 10-year median is 0.78 vs. the industry median of 3.28, 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 Operating Margin % for a Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HF Foods Group's current Operating Margin % of 0.33% is 89.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on HF Foods Group and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HF Foods Group's current Operating Margin % is 0.33%, which is 58% below median its own 10-year median of 0.78. 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 $1.77 — trading 51.1% below its estimated fair value. The current Operating Margin % is 0.33%, which is 58% below median its 10-year median of 0.78 and 89.9% below the Retail - Defensive industry median of 3.28. HF Foods Group's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For HF Foods Group (HFFG), the current Operating Margin % is 0.33% 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 $1.77 is trading 51.1% below its estimated GF Value™ of $3.62.
GuruFocus considers HF Foods Group to be Possible Value Trap.
Key valuation signals for HFFG:
Operating Margin %: 0.33% (58% below median its 10-year median of 0.78)
GF Value™: $3.62 vs. price of $1.77 (51.1% below fair value)
Industry Position: 89.9% below the Retail - Defensive median (#247 of 310)
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.
66GF Score
Get the complete analysis for HFFG
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HFFG has been successfully added to your 
