Hour Loop, Inc.
Hour Loop, Inc. Fundamental Analysis
Hour Loop, Inc. (HOUR) shows moderate financial fundamentals with a PE ratio of 37.55, profit margin of 1.20%, and ROE of 24.67%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 4.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HOUR's fundamental strength across five key dimensions:
Efficiency Score
WeakHOUR struggles to generate sufficient returns from assets.
Valuation Score
ModerateHOUR shows balanced valuation metrics.
Growth Score
WeakHOUR faces weak or negative growth trends.
Financial Health Score
ExcellentHOUR maintains a strong and stable balance sheet.
Profitability Score
ModerateHOUR maintains healthy but balanced margins.
Key Financial Metrics
Is HOUR Expensive or Cheap?
P/E Ratio
HOUR trades at 37.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HOUR's PEG of 0.36 indicates potential undervaluation.
Price to Book
The market values Hour Loop, Inc. at 9.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.47 times EBITDA. This signals the market has high growth expectations.
How Well Does HOUR Make Money?
Net Profit Margin
For every $100 in sales, Hour Loop, Inc. keeps $1.20 as profit after all expenses.
Operating Margin
Core operations generate 1.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.67 in profit for every $100 of shareholder equity.
ROA
Hour Loop, Inc. generates $7.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hour Loop, Inc. generates limited operating cash flow of $2.11M, signaling weaker underlying cash strength.
Free Cash Flow
Hour Loop, Inc. generates weak or negative free cash flow of $2.11M, restricting financial flexibility.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
HOUR converts 3.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How HOUR Stacks Against Its Sector Peers
| Metric | HOUR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.55 | 23.78 | Worse (Expensive) |
| ROE | 24.67% | 1098.00% | Weak |
| Net Margin | 1.20% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.12 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 1.37 | 2.64 | Neutral |
| ROA | 7.16% | -8081.00% (disorted) | Weak |
HOUR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hour Loop, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
415.81%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
253.47%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
159.92%
Industry Style: Cyclical, Growth, Discretionary
High Growth