Hour Loop, Inc. (HOUR)
Valuation Overview•Is Hour Loop, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 66/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
HOUR demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($3M) and minimal debt risk.
The company demonstrates solid revenue growth (14.1% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (1.8%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $29.9M | +3.0% | +14.1% | +29.8% | — | |
| EBITDA | $1.2M | — | — | — | — | |
| Net Income | $823K | +159.3% | — | — | — | |
| EPS (Diluted) | $0.02 | +159.4% | — | -15.1% | — | |
| Free Cash Flow | -$1.6M | +803.2% | — | -8.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 52.2% | 51.6% | 52.3% | 52.2% |
| Operating Margin | 1.8% | -0.0% | 1.3% | 2.2% |
| Net Margin | 1.3% | -0.1% | 1.2% | 2.0% |
| FCF Margin | -0.3% | 0.1% | 0.1% | 1.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $0.02 | — | ||
| Q1'26 | — | $-0.04 | — | ||
| Q4'25 | — | $0.01 | — | ||
| Q3'25 | — | $0.04 | — | ||
| Q2'25 | — | $0.02 | — | ||
| Q1'25 | — | $-0.04 | — | ||
| Q4'24 | — | $0.01 | — | ||
| Q3'24 | — | $0.02 | — |
Total return is +29.9% (1Y), outperforming the benchmark by +9.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +1.1% | -6.2% | — |
| 1Y | +29.9% | +9.0% | — |
| 3YCAGR | +3.4% | -14.7% | — |
| 5YCAGR | -25.2% | -36.1% | — |
| 10YCAGR | -13.5% | -26.8% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Hour Loop, Inc. (HOUR) valuation, health, and returns.
Based on peer relative multiples, Hour Loop, Inc. appears Slightly expensive versus peers compared to industry peers.
Hour Loop, Inc. has multiple valuation anchors: Peer Relative Fair Value: $1.51. A convergence of these signals offers higher conviction.
Hour Loop, Inc. displays good financial health with a composite quality score of 66/100, supported by a Altman Z-Score of 9.1 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 47.4%.
Hour Loop, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Hour Loop, Inc.'s current growth trajectory is Decelerating. The company achieved +3.0% 1Y revenue growth and +159.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +14.1%.
Wall Street consensus is Hold based on 0 analysts, beating EPS expectations in 20% of recent quarters with a -4-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Hour Loop, Inc. include: -70.5% 1-year max drawdown. Volatility risk is characterized by a beta of 1.26x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.