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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Hour LoopHOUR -0.24%77 Operating Margin % is 3.82% as of Mar. 2026, which is 621% above its 10-year median of 0.53. 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 1,123 Retail - Cyclical companies, Hour Loop ranks worse than 63.76% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Hour Loop's Operating Income for the
three
months ended in Mar. 2026 was $1.1 Mil. Hour Loop's Revenue for the
three
months ended in Mar. 2026 was $29.9 Mil. Therefore, Hour Loop's Operating Margin % for the quarter that ended in Mar. 2026 was 3.82%.
The historical rank and industry rank for Hour Loop's Operating Margin % or its related term are showing as below:
HOUR'
s Operating Margin % Range Over the Past 10 Years
Min: -2.27 Med: 0.53 Max: 9.94
Current: 1.83
HOUR's Operating Margin % is ranked worse than 63.76% of 1123
companies
in the Retail - Cyclical industry
Industry Median: 3.93
vs HOUR: 1.83
Hour Loop's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Hour Loop's Operating Income for the
three
months ended in Mar. 2026 was $1.1 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $2.7 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Hour Loop Operating Margin % Related Terms
Hour Loop Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hour Loop's Operating Margin % 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 vs LITB, AAQL, UZX: Operating Margin % Comparison
For the Internet Retail subindustry, Hour Loop's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hour Loop's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hour Loop's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Hour Loop's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (HOUR) has a Operating Margin % of 3.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hour Loop and its competitors. This is 621% above median its historical median of 0.53. According to the industry distribution chart, Hour Loop ranks #716 out of 1123 companies in the Retail - Cyclical industry, placing it in the top 63.8%.
Is Hour Loop's Operating Margin % too high?
Hour Loop's current Operating Margin % of 3.82% is 621% above median its 10-year median of 0.53. The Retail - Cyclical industry median Operating Margin % is 3.93. Hour Loop's value of 3.82% is 2.8% below this industry median. Based on the distribution chart, Hour Loop ranks #716 out of 1123 companies in the Retail - Cyclical industry, which is below the industry midpoint. 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 Operating Margin % compare to LITB and AAQL?
According to the Retail - Cyclical industry distribution chart, Hour Loop ranks #716 out of 1123 companies for Operating Margin %. This places Hour Loop in the lower half of its industry. The industry median Operating Margin % is 3.93. Hour Loop's value of 3.82% is 2.8% below this benchmark. While the company's 10-year median is 0.53 vs. the industry median of 3.93, Hour Loop has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.93, based on 1,123 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hour Loop's current Operating Margin % of 3.82% is 2.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Hour Loop and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hour Loop's current Operating Margin % is 3.82%, which is 621% above median its own 10-year median of 0.53. 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 Operating Margin % is 3.82%, which is 621% above median its 10-year median of 0.53 and 2.8% below the Retail - Cyclical industry median of 3.93. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Hour Loop (HOUR), the current Operating Margin % is 3.82% as of Mar. 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:
Operating Margin %: 3.82% (621% above median its 10-year median of 0.53)
GF Value™: $1.84 vs. price of $2.05 (11.4% above fair value)
Industry Position: 2.8% below the Retail - Cyclical median (#716 of 1123)
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 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
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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