Hurco Companies (HURC) AI Stock Analysis

• Market Cap: $107.88M
• Dividend Yield: N/A
• Average Volume (3M): 37.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -6.13%
• EPS Growth: -6.61%
• Country: US
• Employees: 688
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.57
• Shares Outstanding: 6,402,396
• 10 Day Avg. Volume: 19,216
• 30 Day Avg. Volume: 37,927
• PEG Ratio: 0.02
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.73
• P/FCF Ratio: -36.26
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 2.48
• Enterprise Value/Ebitda: -13.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $18.50 ▲(14.20% Upside)

Hurco Companies' overall stock score is primarily impacted by its financial performance, which shows significant operational challenges. Technical analysis provides a neutral outlook, while poor valuation due to negative earnings further weighs down the score. The absence of earnings call insights and corporate events leaves the financial and technical aspects as the primary determinants.

Positive Factors

Cash Flow Improvement

Improved cash flow indicates better financial management, providing more resources for investment and reducing financial risk.

Low Leverage

Low leverage suggests financial stability, allowing the company to weather economic downturns and invest in growth opportunities.

R&D Investment

Continued R&D investment enhances competitive edge and supports long-term growth by driving innovation and product development.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Negative Profitability

Negative profitability reflects operational inefficiencies and cost pressures, which could hinder future investments and growth.

Declining Equity

A declining equity position can limit financial flexibility and may signal underlying financial health issues, affecting long-term stability.

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 generates revenue primarily through the sale of CNC machine tools, including vertical and horizontal machining centers, lathes, and related accessories. The company also earns income from software sales and service contracts, which provide ongoing support and maintenance for its machinery. Significant revenue streams include direct sales to manufacturers, as well as international sales through a network of distributors and representatives. Additionally, Hurco invests in research and development to introduce new technologies, enhancing its competitive edge and contributing to customer retention and expansion in existing markets.

Hurco Companies Financial Statement Overview

Summary

Hurco Companies faces significant operational challenges with declining revenue and profitability. The balance sheet remains stable with low leverage, but declining equity raises concerns. Cash flow improvements are positive, yet negative net income continues to exert pressure.

Income Statement

Hurco Companies shows a negative trend with declining revenues and profitability. The TTM data indicates significant challenges with a negative net profit margin and EBIT margin, reflecting operational inefficiencies and cost pressures. Revenue has also decreased over the past year, indicating shrinking market position or demand.

Balance Sheet

The balance sheet reflects a stable capital structure with a low debt-to-equity ratio, suggesting financial stability and low leverage. However, a declining equity position over time indicates potential risks. The company retains strong equity ratio, but diminishing stockholders' equity is a concern for future growth support.

Cash Flow

Positive free cash flow in the TTM period marks an improvement in cash management, with a turnaround from negative to positive operating cash flow. However, the free cash flow to net income ratio remains challenging due to negative net income, indicating cash flow sustainability concerns amid operational losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.79M	186.58M	227.81M	250.81M	235.19M	170.63M
Gross Profit	37.18M	37.74M	56.17M	64.48M	56.25M	36.46M
EBITDA	-7.00M	-5.74M	11.13M	15.82M	14.34M	-6.16M
Net Income	-13.52M	-16.61M	4.39M	8.23M	6.76M	-6.25M
Balance Sheet
Total Assets	269.09M	268.64M	290.59M	306.24M	332.94M	295.65M
Cash, Cash Equivalents and Short-Term Investments	44.49M	33.33M	41.78M	63.92M	84.06M	57.86M
Total Debt	12.31M	11.68M	11.32M	8.79M	11.02M	12.12M
Total Liabilities	65.42M	61.47M	68.36M	83.59M	94.52M	64.51M
Stockholders Equity	203.67M	207.17M	222.23M	222.64M	238.42M	231.15M
Cash Flow
Free Cash Flow	10.96M	-3.76M	-15.40M	-6.16M	29.81M	9.28M
Operating Cash Flow	12.66M	-2.52M	-12.82M	-3.97M	32.17M	10.93M
Investing Cash Flow	-2.76M	-2.74M	-1.90M	-2.09M	-3.35M	-1.18M
Financing Cash Flow	-3.35M	-3.91M	-8.82M	-6.90M	-3.52M	-10.85M

Hurco Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 16.2 is below the 20-day moving average (MA) of 16.63, below the 50-day MA of 17.31, and below the 200-day MA of 17.03, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 37.50 is Neutral, neither overbought nor oversold. The STOCH value of 25.57 is Neutral, 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	70 Neutral	$156.68M	18.35	15.12%	―	-3.64%	-4.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TWIN	62 Neutral	$223.73M	639.92	0.22%	1.03%	14.24%	-96.24%
HURC	53 Neutral	$107.88M	-8.07	-6.59%	―	-6.13%	-6.61%
CVV	47 Neutral	$22.96M	―	-0.73%	―	19.84%	95.71%
BURU	35 Underperform	$104.99M	―	―	―	-98.20%	93.77%

Hurco Companies Corporate Events

Hurco Reports Improved Q3 Results Amid Sales Growth

Hurco Companies, Inc., an industrial technology firm based in Indianapolis, specializes in selling computer numeric control (CNC) machine tools to the global metal cutting and forming industry, with operations spanning the Americas, Europe, and Asia. The company recently reported its financial results for the third quarter of fiscal year 2025, revealing a net loss of $3.7 million, an improvement from the $9.6 million loss in the same quarter of the previous year. Despite the loss, Hurco experienced a 7% increase in sales and service fees, reaching $45.8 million, driven by strong performance in the Americas and Asia Pacific regions.