Hour Loop Inc (HOUR) AI Stock Analysis

• Market Cap: $69.30M
• Dividend Yield: N/A
• Average Volume (3M): 85.73K
• Price to Earnings (P/E): 83.1
• Beta (1Y): 0.85
• Revenue Growth: -1.76%
• EPS Growth: -53.07%
• Country: US
• Employees: 151
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.01
• Shares Outstanding: 35,176,320
• 10 Day Avg. Volume: 118,606
• 30 Day Avg. Volume: 85,727
• PEG Ratio: -0.95
• Price to Book (P/B): 15.31
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 285.12
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: 72.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $2.00 ▼(-7.41% Downside)

The overall stock score for Hour Loop Inc is primarily influenced by its financial performance, which shows potential for profitability improvement despite cash flow challenges. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and approaching oversold conditions. The high P/E ratio suggests overvaluation, further impacting the overall score.

Positive Factors

Revenue Growth

The increase in Q3 revenue indicates a positive trend in sales, suggesting effective market strategies and product demand, which can drive long-term growth.

Gross Profit Margin

A strong gross profit margin reflects effective cost management and pricing power, supporting sustainable profitability and competitive advantage.

Low Leverage

Prudent leverage management enhances financial stability, providing flexibility for future investments and resilience against economic downturns.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth indicates potential liquidity issues, which could hinder the company's ability to invest in growth opportunities or manage debt.

Net Profit Margin

A low net profit margin suggests limited profitability, which may affect the company's ability to generate sufficient returns and invest in future growth.

Economic Uncertainty

Lack of guidance amid economic uncertainty, influenced by tariff conditions, could impact strategic planning and investor confidence in the company's future performance.

Hour Loop Inc Business Overview & Revenue Model

Company Description

Hour Loop Inc (HOUR) is a dynamic e-commerce company specializing in a wide range of consumer products, including home goods, electronics, and lifestyle items. The company operates within the retail sector, leveraging online platforms to reach a broad customer base. Hour Loop is known for its commitment to providing high-quality products at competitive prices, alongside excellent customer service and fast shipping options.

How the Company Makes Money

Hour Loop Inc generates revenue primarily through online sales of its diverse product offerings. The company employs a direct-to-consumer model, allowing it to sell products directly to customers via its e-commerce website. Key revenue streams include sales from home goods, electronics, and lifestyle products, with a focus on both volume and margin improvement. Additionally, Hour Loop may engage in strategic partnerships with suppliers and manufacturers to optimize inventory costs and expand its product selection, further enhancing its competitiveness in the market.

Hour Loop Inc Financial Statement Overview

Summary

Hour Loop Inc shows a positive trajectory in revenue growth and profitability, supported by improved financial management and operational efficiency. The balance sheet reflects a healthier financial position with reduced debt levels. While cash flow has improved, the company should focus on enhancing free cash flow to ensure long-term financial sustainability. Continued focus on operational efficiency and cash management will be crucial for future growth and stability.

Income Statement

Hour Loop Inc has demonstrated consistent revenue growth over recent years, with a notable increase from $38.7 million in 2020 to $138.3 million in 2024. Gross profit margins have been stable, albeit with some fluctuations, around 50%. The company has made significant improvements in net income, turning a negative figure in 2023 to a positive $657,447 in 2024, indicating enhanced profitability. However, EBIT and EBITDA margins have been low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating reduced reliance on debt, with a decrease in total debt from $4.9 million in 2023 to $725,507 in 2024. Stockholders' equity has increased, enhancing financial stability. The equity ratio remains moderate, reflecting a balanced capital structure. However, the relatively high total liabilities compared to assets could pose a risk if not managed cautiously.

Cash Flow

Hour Loop Inc's cash flow situation has improved, moving from negative operating cash flow in 2023 to positive in 2024. The operating cash flow to net income ratio indicates improved cash generation efficiency. Despite the positive trend, free cash flow remains modest, suggesting a need for further improvement in liquidity and cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	140.79M	138.25M	132.12M	95.93M	62.79M	38.66M
Gross Profit	71.71M	72.01M	66.52M	48.99M	34.81M	22.17M
EBITDA	1.51M	1.33M	-2.77M	-1.72M	5.55M	3.87M
Net Income	834.95K	657.45K	-2.43M	-1.48M	4.78M	3.83M
Balance Sheet
Total Assets	31.62M	19.97M	19.55M	25.73M	18.82M	9.85M
Cash, Cash Equivalents and Short-Term Investments	796.31K	2.12M	2.48M	4.56M	10.59M	4.97M
Total Debt	772.90K	725.51K	4.91M	5.43M	5.21M	84.54K
Total Liabilities	23.95M	14.81M	15.10M	18.90M	16.16M	5.67M
Stockholders Equity	7.67M	5.16M	4.45M	6.83M	2.65M	4.17M
Cash Flow
Free Cash Flow	1.44M	277.14K	-2.08M	-11.94M	7.75M	3.82M
Operating Cash Flow	1.49M	313.14K	-2.06M	-11.60M	7.76M	3.82M
Investing Cash Flow	-49.93K	-36.00K	-14.82K	-339.52K	-16.11K	0.00
Financing Cash Flow	-1.88M	-671.00K	0.00	5.92M	-2.13M	299.26K

Hour Loop Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOUR, the sentiment is Positive. The current price of 2.16 is above the 20-day moving average (MA) of 1.94, below the 50-day MA of 2.34, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 32.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOUR.

Hour Loop Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
W	57 Neutral	$14.67B	―	―	―	3.35%	42.99%
ETSY	55 Neutral	$5.35B	37.86	―	―	1.98%	-20.98%
JWEL	54 Neutral	$3.21M	-0.40	―	―	-16.89%	31.24%
HOUR	52 Neutral	$69.30M	83.12	11.63%	―	-1.76%	-53.07%
JMIA	45 Neutral	$1.46B	―	-102.25%	―	-4.38%	―
FLWS	43 Neutral	$216.47M	―	-67.22%	―	-8.07%	-2206.16%

Hour Loop Inc Corporate Events

Hour Loop Inc Elects Directors and Ratifies Auditors

On August 29, 2025, Hour Loop, Inc. held its virtual annual meeting of stockholders to elect directors and ratify auditors. The company successfully elected five directors to its Board for a one-year term and ratified HTL International, LLC as its independent auditors for the fiscal year ending December 31, 2024.