skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. HBFG: Can you give your analysis of HBFG and if you see it as a good investment? [Happy Belly Food Group Inc.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Can you give your analysis of HBFG and if you see it as a good investment? If you can include whether the valuation is pricey after the big run up and any concerns with it being on the .CN exchange? Thx
Asked by Adam on January 09, 2025
5i Research Answer:

HBFG got a lot of attention last year from some small cap investor sites. It provides plant-based snack foods and has moved into and/or acquired other food franchises. It just bought Smile Tiger coffee. Revenues are growing, but with a market cap of $170M on 12-month revenue of just $6.5M it is exceptionally expensive. It has one analyst (Ventum Financial). Cash flow has been running negative. But it is certainly growing. System sales were up 488% in the recent quarter. Insiders own 11% and have been net buyers in the last six months. Operationally, we like the company's moves and it is certainly getting attention. With fast growth, we can overlook high valuations, usually. But in this case valuation remains an issue for us, considering sector and small cap risks are thrown in as well.