HF Foods Group (HF Foods Group) Gross Margin % : 17.05% (As of Mar. 2024)

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What is HF Foods Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. HF Foods Group's Gross Profit for the three months ended in Mar. 2024 was $50 Mil. HF Foods Group's Revenue for the three months ended in Mar. 2024 was $296 Mil. Therefore, HF Foods Group's Gross Margin % for the quarter that ended in Mar. 2024 was 17.05%.

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: 17.56 Max: 19.01
Current: 17.76

During the past 7 years, the highest Gross Margin % of HF Foods Group was 19.01%. The lowest was 14.87%. And the median was 17.56%.

HFFG's Gross Margin % is ranked worse than
66.02% of 309 companies
in the Retail - Defensive industry
Industry Median: 22.74 vs HFFG: 17.76

HF Foods Group had a gross margin of 17.05% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for HF Foods Group was 1.30% per year.

HF Foods Group Gross Margin % Historical Data

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.

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HF Foods Group Gross Margin % Chart

HF Foods Group Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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16.55

17.77

19.01

17.56

17.77

HF Foods Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															17.07	17.33	18.09	18.61	17.05

Competitive Comparison of HF Foods Group's Gross Margin %

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's Gross Margin % Distribution in the 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.

HF Foods Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

HF Foods Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	204	/	1148.493
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1148.493 - 944.462)	/	1148.493
	=	17.77 %

HF Foods Group's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	50.4	/	295.654
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(295.654 - 245.243)	/	295.654
	=	17.05 %

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 (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 17.05% for the quarter that ended in Mar. 2024 => 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

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HF Foods Group (HF Foods Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » HF Foods Group Inc (NAS:HFFG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

6325 South Rainbow Boulevard, Suite 420, Las Vegas, NV, USA, 89118

Website

https://www.hffoodsgroup.com

HF Foods Group Inc is an Asian food service distributor that markets and distributes fresh produce, seafood, frozen and dry food, and non-food products to Asian restaurants and other food service 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 customer base consists of Chinese and Asian restaurants, and it provides sales and service support to customers who mainly converse in Mandarin or Chinese dialects.

Executives

Xiao Mou Zhang	director, officer: Chief Executive Officer	6001 W. MARKET STREET, GREENSBORO NC 27409
Prudence H Chiang	director	6325 S RAINBOW BLVD STE 420, LAS VEGAS NV 89118
Valerie Chase	director	SOUTH 6325 RAINBOW BOULEVARD, SUITE 420, LAS VEGAS NV 89118
Xi Lin	officer: Chief Operating Officer	6001 W. MARKET STREET, GREENSBORO NC 27409
Russell T. Libby	director	SYSCO CORPORATION, 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Christine Chang	officer: See Remarks	19319 ARENTH AVENUE, CITY OF INDUSTRY CA 91748
Hong Wang	director	5811 WILDROSE DRIVE, GREENSBORO NC 27410
Carlos Antonio Rodriguez	officer: Chief Financial Officer	6325 SOUTH RAINBOW BOULEVARD, SUITE 420, LAS VEGAS NV 89118
Jose Maroto	director	6325 SOUTH RAINBOW BOULEVARD, SUITE 420, LAS VEGAS NV 89118
Kong Hian Lee	officer: Chief Financial Officer	19319 ARENTH AVENUE, CITY OF INDUSTRY CA 91748
Spot Light Investments, Llc	10 percent owner	6001 W. MARKET STREET, GREENSBORO NC 27409
Ren Hua Zheng	director	2 DANDY DRIVE, COS COB CT 06807
Caixuan Xu	officer: Chief Financial Officer	6001 W. MARKET ST, GREENSBORO NC 27409
Zhehui Ni	director	ROOM 1704, BUILDING #16, NO. 58 AOMEN ROAD, SHANGHAI F4 200061
Irrevocable Trust For Raymond Ni	10 percent owner	6001 WEST MARKET STREET, GREENSBORO NC 27409