Hour Loop Inc (HOUR) AI Stock Analysis

• Market Cap: $64.72M
• Dividend Yield: N/A
• Average Volume (3M): 82.48K
• Price to Earnings (P/E): 77.6
• Beta (1Y): 0.94
• 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: 36,877
• 30 Day Avg. Volume: 82,478
• 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: 1.69
• 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: 54 Neutral
• Price Target: $2.00 ▼(-7.41% Downside)

Hour Loop Inc's overall stock score is primarily influenced by its solid financial performance, particularly in revenue growth and cost management. However, technical indicators suggest a bearish trend, and the high P/E ratio raises concerns about overvaluation. The lack of dividend yield further impacts the valuation score. Addressing cash flow challenges and improving profitability could enhance the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance product adoption, supporting long-term business sustainability.

Gross Profit Margin

A strong gross profit margin reflects efficient cost control, allowing the company to maintain profitability and competitive pricing, which is crucial for long-term success.

Leverage Management

Prudent leverage management with a low debt-to-equity ratio enhances financial stability, providing the company with flexibility to invest in growth opportunities.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth indicates potential liquidity issues, which could limit the company's ability to fund operations and invest in future growth.

Net Profit Margin

A low net profit margin highlights challenges in converting revenue into profit, which may affect the company's ability to sustain long-term profitability and shareholder returns.

Operating Cash Flow

A low operating cash flow to net income ratio suggests inefficiencies in cash generation from operations, potentially impacting the company's ability to meet financial obligations and invest in growth.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOUR, the sentiment is Negative. The current price of 2.16 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.97, and above the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 33.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
HOUR	54 Neutral	$64.72M	77.64	11.63%	―	-1.76%	-53.07%
LITB	54 Neutral	$46.34M	8.50	―	―	-34.42%	―
PRTS	51 Neutral	$35.19M	-0.52	-67.30%	―	-8.35%	-74.31%
OCG	44 Neutral	$473.52K	-0.10	-8.68%	―	-74.20%	64.28%
SPWH	43 Neutral	$53.10M	―	-16.36%	―	-1.05%	-10.28%
QVCGA	41 Neutral	$79.23M	-0.02	―	―	-7.21%	-1200.27%