Hurco Companies (HURC) AI Stock Analysis

• Market Cap: $94.76M
• Dividend Yield: N/A
• Average Volume (3M): 37.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -6.13%
• EPS Growth: -6.61%
• Country: US
• Employees: 688
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.54
• Shares Outstanding: 6,446,454
• 10 Day Avg. Volume: 19,216
• 30 Day Avg. Volume: 37,927
• PEG Ratio: 0.89
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.96
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: -6.07
• 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: 47 Neutral
• Price Target: $14.50 ▼(-16.04% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held down primarily by deteriorating operating performance (sharp TTM revenue decline and current losses) and bearish technicals (below key moving averages with negative MACD). Balance-sheet strength and positive (though uneven) cash flow provide partial support, while valuation is constrained by negative earnings and corporate events are modestly positive but not transformative.

Positive Factors

Low leverage / strong balance sheet

Very low debt-to-equity (~0.06) provides durable financial flexibility through demand cycles. This reduces interest burden, supports working capital and selective capex, and preserves the ability to fund recovery, aftermarket support, or strategic investments without relying on dilutive financing.

Proprietary controls and recurring aftermarket revenue

Owning proprietary CNC controls and software plus an installed base that drives parts, service and maintenance creates recurring revenue and customer lock-in. That structural mix smooths cyclicality of machine sales, supports gross margins, and enables lifecycle upsells and software-based differentiation.

Positive operating and free cash flow (TTM)

Positive trailing‑twelve‑month operating and free cash flow, despite accounting losses, indicate the business can generate cash from operations. This helps fund operations and working capital, providing a durable buffer while management works to restore profitability and stabilize volumes.

Negative Factors

Declining revenue & sustained losses

A ~26% TTM revenue decline and persistent operating losses reflect weakened end‑market demand and limited operating leverage at current volumes. Sustained negative EBITDA and net income constrain reinvestment, undermine margin recovery prospects, and increase reliance on balance‑sheet strength to bridge the downturn.

Inconsistent cash conversion

Material FCF decline versus the prior year and historical volatility reduce predictability of internally available funds. Inconsistent cash conversion impairs planning for capex, R&D and service investments, complicates distributor support and could delay necessary product or go‑to‑market investments for recovery.

Negative returns on equity

Multi‑period negative ROE signals the company is not generating acceptable returns on shareholder capital. That undermines long‑term investor confidence, limits ability to pursue growth through reinvestment, and raises the bar for management to restore profitable operations sustainably.

Hurco Companies Business Overview & Revenue Model

Company Description

Hurco Companies, Inc., an industrial technology company, designs, manufactures, and sells computerized machine tools to companies in the metal cutting industry worldwide. The company's principal products include general-purpose computerized machine tools, including vertical and horizontal machining centers, turning centers, and toolroom machines. It also provides computer control systems and related software for press brake applications. In addition, the company offers machine tool components, automation integration equipment, and solutions for job shops; and software options, control upgrades, and accessories and replacement parts for its products, as well as customer service, training, and applications support services. It serves independent job shops and specialized short-run production applications within large manufacturing operations, as well as precision tool, die, and mold manufacturers in aerospace, defense, medical equipment, energy, automotive/transportation, electronics, and computer industries. The company sells its products under the Hurco, Milltronics, and Takumi brands through independent agents and distributors, as well as through its direct sales and service organizations. Hurco Companies, Inc. was incorporated in 1968 and is headquartered in Indianapolis, Indiana.

How the Company Makes Money

Hurco primarily makes money by selling CNC machine tools (e.g., machining centers and lathes/turning centers) to industrial customers; these machine-tool sales are the company’s core revenue driver. Revenue is generated when machines are sold either through Hurco’s direct sales organizations or via independent distributors in various regions, with pricing influenced by machine configuration, options, and delivered automation/productivity features. In addition to machine sales, Hurco earns revenue from (1) sales of proprietary CNC control systems and software capabilities bundled with or added to machines, and (2) recurring/aftermarket sources tied to its installed base—such as replacement parts, service and support, and maintenance-related activities. The company’s earnings are also influenced by channel mix (direct vs. distributor), geographic demand cycles in capital equipment spending, order timing and backlog conversion, and the overall health of manufacturing activity in the markets it serves. Specific named partnerships or customer concentration details: null.

Hurco Companies Financial Statement Overview

Summary

Operating results are weak: TTM revenue fell ~26% and profitability is negative (operating income/EBITDA/net income). Offsetting this, the balance sheet is a strength with very low leverage (debt-to-equity ~0.06) and substantial equity, and TTM operating cash flow/free cash flow are positive but volatile and down versus the prior annual period.

Income Statement

TTM (Trailing-Twelve-Months) revenue fell sharply (down ~26%), and profitability is currently weak with negative operating income, EBITDA, and net income. While gross margin improved versus the latest annual period, the company has moved from modest profitability in 2022–2023 to sustained losses in 2024–TTM, indicating a challenging demand/price-cost environment and limited operating leverage at current volumes.

Balance Sheet

The balance sheet remains a clear strength: leverage is low (debt-to-equity ~0.06 in TTM (Trailing-Twelve-Months)) and equity is substantial relative to assets, providing flexibility through the downturn. The key weakness is returns—return on equity is negative in TTM (Trailing-Twelve-Months) and has been negative for multiple recent periods, reflecting earnings pressure rather than balance-sheet stress.

Cash Flow

Cash generation is mixed. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive, which helps offset accounting losses, but free cash flow declined materially versus the prior annual period and cash flow has been volatile (negative in several earlier years). Overall, liquidity support looks adequate, but consistency is a concern until earnings and cash conversion stabilize.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	175.01M	178.55M	186.58M	227.81M	250.81M	235.19M
Gross Profit	32.87M	32.98M	37.74M	56.17M	64.48M	56.25M
EBITDA	-10.48M	-9.39M	-5.74M	11.13M	15.82M	14.34M
Net Income	-14.27M	-15.12M	-16.61M	4.39M	8.23M	6.76M
Balance Sheet
Total Assets	261.54M	264.30M	268.64M	290.59M	306.24M	332.94M
Cash, Cash Equivalents and Short-Term Investments	48.01M	48.71M	33.33M	41.78M	63.92M	84.06M
Total Debt	11.56M	11.93M	11.68M	11.32M	8.79M	11.02M
Total Liabilities	66.50M	65.51M	61.47M	68.36M	83.59M	94.52M
Stockholders Equity	195.03M	198.79M	207.17M	222.23M	222.64M	238.42M
Cash Flow
Free Cash Flow	6.18M	16.65M	-3.76M	-15.40M	-6.16M	29.81M
Operating Cash Flow	6.61M	17.56M	-2.52M	-12.82M	-3.97M	32.17M
Investing Cash Flow	-311.00K	-1.25M	-2.74M	-1.90M	-2.09M	-3.35M
Financing Cash Flow	-2.27M	-2.35M	-3.91M	-8.82M	-6.90M	-3.52M

Hurco Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HURC, the sentiment is Negative. The current price of 17.27 is above the 20-day moving average (MA) of 16.74, above the 50-day MA of 16.82, and above the 200-day MA of 17.11, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 25.05 is Positive, neither overbought nor oversold. The STOCH value of 4.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HURC.

Hurco Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAYD	78 Outperform	$234.75M	18.70	15.12%	―	-3.64%	-4.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TWIN	63 Neutral	$213.73M	2.69	13.25%	0.95%	14.24%	-96.24%
CVV	55 Neutral	$27.61M	15.05	-0.72%	―	19.84%	95.71%
HURC	47 Neutral	$94.76M	-7.66	-7.13%	―	-6.13%	-6.61%
BURU	35 Underperform	$27.82M	-0.91	168.54%	―	-98.20%	93.77%

Hurco Companies Corporate Events

Hurco Shareholders Back Board, Executive Pay and Auditor

At its Annual Meeting of Shareholders held on March 12, 2026, Hurco Companies’ investors elected all eight nominees to the board of directors to serve until the next annual meeting, affirming the company’s existing leadership structure. Shareholders also approved on an advisory basis the compensation packages for the company’s named executive officers, signaling support for Hurco’s current executive pay practices and governance approach.

In addition, shareholders ratified the appointment of Deloitte & Touche LLP as Hurco’s independent registered public accounting firm for the fiscal year ending October 31, 2026, reinforcing continuity in the company’s external audit oversight. The voting outcomes reflect broad shareholder alignment with Hurco’s governance, leadership, and financial reporting framework, suggesting stability for stakeholders in the near term.

The most recent analyst rating on (HURC) stock is a Sell with a $14.50 price target. To see the full list of analyst forecasts on Hurco Companies stock, see the HURC Stock Forecast page.