Quality Investor

Hour Loop, Inc.

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HOUR · Nasdaq · Consumer Cyclical

Hour Loop, Inc. (HOUR) — Rank #1 by gross profitability (GP/assets 2.85) · ROE 19.2% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0001874875 · all metrics point-in-time as of the filing date.

About

Hour Loop, Inc., an online retailer, engages in e-commerce retailing business in the United States.

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It sells products in various categories, including home/garden décor, toys, kitchenware, apparel, and electronics. The company sells its products through hourloop.com, as well as third-party marketplaces, including Amazon, Walmart, eBay, and Etsy. Hour Loop, Inc.

was founded in 2013 and is headquartered in Redmond, Washington.

Industry
Internet Retail
Sector
Consumer Cyclical
State
DE
Filer Category
Non-accelerated filerSmaller reporting companyEmerging growth company
Fiscal Year End
December 31

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

159

Industry

Internet Retail

Exchange

Nasdaq

11/11

Flags passed

HOUR passes 11/11 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Operating leverage expanding · Sequential beat (rev + EPS)

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
2.85
Return on equity
19.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.95
Current ratio
1.49×
Net cash
—

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.0%

Growth

2/2 pass
Revenue growth
3.0%
Piotroski F-Score
N/A
Share dilution
0.1%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

No warning flags · GP/assets 2.85

Gross profitability (GP / assets)

2.85

Primary signal (Novy-Marx).

1st of 11 SIC 59 peers

Return on equity

19.2%

Gross margin

52.4%

3rd of 11 SIC 59 peers

Revenue growth (YoY)

3.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

14.1%

Revenue CAGR (5Y)

29.8%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 47% above net income

Free cash flow

$2.50M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

46.8%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.0%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.95

10th of 10 SIC 59 peers (best = lowest)

Current ratio

1.49×

7th of 11 SIC 59 peers

Quick ratio

—

Net cash

—

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

1.7 / 5

Weak
Share count trend
0.1%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
N/A0/5 Weak

Lifecycle Phase History

20202025
Hypergrowth
Value

Price History

HOUR-77.8% · -27.5% CAGRSPY+74.1% · +12.5% CAGR