Quality Investor

Hour Loop, Inc.

Rank #1Value

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 2026-09-15 · 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

Price History

HOUR-77.0% · -27.1% CAGRSPY+74.3% · +12.7% CAGR

Company Snapshot

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

Market Cap

$64.77M

P/E (annual)

36.8

P/S (annual)

0.5

P/B

7.3

P/OCF (annual)

25.1

Shareholder Yield

-0.1%

Employees

159

Industry

Internet Retail

Exchange

Nasdaq

Signal Flags

2 green
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

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%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

11.2%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.1% — per-share value needs a total required return of 11.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 45.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

6.7%

r = 10% (base)

11.2%

r = 12%

15.1%

Base FCF: $2.5M3Y mean FCF: $234K

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

0.5xCheap
0.4xmed 0.6x2.6x

P / B

Price / book value per share

9.6xCheap
9.6xmed 12.3x38.1x

P / GP

Price / gross profit per share

0.9xCheap
0.8xmed 1.2x4.6x

P / FCF

Price / free cash flow per share

26.7xFair
13.1xmed 26.7x243.3x

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

Profitability

Gross profitability (GP / assets)

2.85

Primary signal (Novy-Marx).

1st of 7 SIC 5961 peers

Return on equity

19.2%

Gross margin

52.4%

2nd of 7 SIC 5961 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)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.95

Current ratio

1.49×

6th of 7 SIC 5961 peers

Quick ratio

Net cash

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$2.50M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.47

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.0%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Hypergrowth
Value