Is HF Foods Group, Inc. overvalued or undervalued?

As of 12 November 2024, the valuation grade for HF Foods Group, Inc. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly highlighted by its P/E ratio of 195, which is significantly higher than the peer average of 21.99 for The Duckhorn Portfolio, Inc. Additionally, HF Foods has a Price to Book Value of 0.82 and an EV to EBITDA of 9.90, which, while lower than some peers, still reflect concerns about its overall valuation.
When comparing HF Foods to its peers, Krispy Kreme, Inc. also carries a risky valuation with a P/E of -14.41, while G. Willi Food International Ltd. is considered very attractive with a P/E of 10.99. The stock has shown mixed performance against the S&P 500, with a year-to-date return of 6.85%, which lags behind the index's 12.22% return, and a stark decline of 51.49% over the past five years, compared to the S&P's 96.61% gain. This performance further reinforces the notion that HF Foods is currently overvalued.