HOUR (Hour Loop) Beneish M-Score: 1.24 (As of Jul. 13, 2026)

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HOUR Hour Loop Inc HOUR
77 GF Score
Price $2.05
GF Value $1.84
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Hour Loop Beneish M-Score?

Hour Loop HOUR -0.24% 77 Beneish M-Score is 1.24 as of Jul. 13, 2026. GuruFocus rates HOUR with a GF Score™ of 77/100 and a GF Value™ of $1.84 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,083 Retail - Cyclical companies, Hour Loop ranks worse than 96.49% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 1.24 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Hour Loop's Beneish M-Score or its related term are showing as below:

HOUR' s Beneish M-Score Range Over the Past 10 Years
Min: -63.16   Med: -2.18   Max: 4.07
Current: 1.24

During the past 7 years, the highest Beneish M-Score of Hour Loop was 4.07. The lowest was -63.16. And the median was -2.18.


Hour Loop Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Hour Loop's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Hour Loop Beneish M-Score Chart

Hour Loop Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial 0.00 4.07 -1.49 -1.98 -3.30

Hour Loop Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.69 -2.50 -2.38 -3.30 1.24

HOUR vs LITB, AAQL, UZX: Beneish M-Score Comparison

For the Internet Retail subindustry, Hour Loop's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hour Loop Beneish M-Score vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Hour Loop's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hour Loop's Beneish M-Score falls into.


HOUR
77GF Score
Hour Loop Inc HOUR
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hour Loop Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Hour Loop for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.9342+0.528 * 0.9851+0.404 * 0.3796+0.892 * 1.0511+0.115 * 25.2808
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9811+4.679 * 0.056863-0.327 * 0.9766
=1.24

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $1.0 Mil.
Revenue was 29.93 + 56.075 + 33.425 + 27.103 = $146.5 Mil.
Gross Profit was 16.018 + 27.816 + 17.175 + 15.497 = $76.5 Mil.
Total Current Assets was $23.8 Mil.
Total Assets was $24.4 Mil.
Property, Plant and Equipment(Net PPE) was $0.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General, & Admin. Expense(SGA) was $73.8 Mil.
Total Current Liabilities was $16.5 Mil.
Long-Term Debt & Capital Lease Obligation was $0.1 Mil.
Net Income was 0.823 + -0.657 + 0.531 + 1.177 = $1.9 Mil.
Non Operating Income was 0.025 + 0.039 + 0.014 + 0.006 = $0.1 Mil.
Cash Flow from Operations was -2.201 + 3.006 + 0.5 + -0.902 = $0.4 Mil.
Total Receivables was $0.5 Mil.
Revenue was 25.837 + 54.426 + 31.075 + 28.071 = $139.4 Mil.
Gross Profit was 14.145 + 24.894 + 17.039 + 15.625 = $71.7 Mil.
Total Current Assets was $18.2 Mil.
Total Assets was $19.1 Mil.
Property, Plant and Equipment(Net PPE) was $0.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.1 Mil.
Selling, General, & Admin. Expense(SGA) was $71.6 Mil.
Total Current Liabilities was $13.3 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1.047 / 146.533) / (0.515 / 139.409)
=0.007145 / 0.003694
=1.9342

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(71.703 / 139.409) / (76.506 / 146.533)
=0.514336 / 0.522108
=0.9851

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (23.761 + 0.233) / 24.392) / (1 - (18.159 + 0.098) / 19.077)
=0.016317 / 0.042984
=0.3796

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=146.533 / 139.409
=1.0511

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.111 / (0.111 + 0.098)) / (0.005 / (0.005 + 0.233))
=0.5311 / 0.021008
=25.2808

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(73.825 / 146.533) / (71.589 / 139.409)
=0.503811 / 0.513518
=0.9811

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0.06 + 16.5) / 24.392) / ((0 + 13.262) / 19.077)
=0.678911 / 0.695183
=0.9766

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1.874 - 0.084 - 0.403) / 24.392
=0.056863

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Hour Loop has a M-score of 1.24 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 1.24 mean?
Hour Loop (HOUR) has a Beneish M-Score of 1.24 as of Jul. 13, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hour Loop and its competitors. According to the industry distribution chart, Hour Loop ranks #1045 out of 1083 companies in the Retail - Cyclical industry, placing it in the top 96.5%.
Is Hour Loop's Beneish M-Score too high?
Hour Loop's current Beneish M-Score is 1.24. Based on the distribution chart, Hour Loop ranks #1045 out of 1083 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Hour Loop has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hour Loop's Beneish M-Score compare to LITB and AAQL?
According to the Retail - Cyclical industry distribution chart, Hour Loop ranks #1045 out of 1083 companies for Beneish M-Score. This places Hour Loop in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Retail - Cyclical company?
A good Beneish M-Score depends on the Retail - Cyclical industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hour Loop and its competitors. Hour Loop's current Beneish M-Score is 1.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hour Loop stock overvalued right now?
Based on GuruFocus' analysis, Hour Loop (HOUR) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.84, compared to a current price of $2.05 — trading 11.4% above its estimated fair value. The current Beneish M-Score is 1.24. Hour Loop's overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Hour Loop (HOUR), the current Beneish M-Score is 1.24 as of Jul. 13, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Hour Loop (HOUR) Overvalued in 2026?

Based on GuruFocus' analysis, Hour Loop stock appears to be overvalued. The current stock price of $2.05 is trading 11.4% above its estimated GF Value™ of $1.84. GuruFocus considers Hour Loop to be Modestly Overvalued.

Key valuation signals for HOUR:

  • Beneish M-Score: 1.24
  • GF Value™: $1.84 vs. price of $2.05 (11.4% above fair value)
  • GF Score™: 77/100 with 3 warning signs

No single metric tells the full story. See the HOUR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hour Loop Business Description

Address 8201 164th Avenue NE, Suite 200, Redmond, WA, USA, 98052-7615
Hour Loop Inc is a technology-enabled consumer products company that uses machine learning and data analytics to design, develop, market, and sell products. Hour Loop predominantly operates through online retail channels such as Amazon, Walmart, and Hourloop.com. The company, as an Internet marketplace seller, sells products in multiple categories, including home/garden decor, toys, kitchenware, apparel, and electronics. It has only one segment, which is online retail (e-commerce).
77GF Score

Get the complete analysis for HOUR

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.05
Price
$1.84
GF Value