Hurco Companies (HURC) AI Stock Analysis

• Market Cap: $128.58M
• Dividend Yield: 1.15%
• Average Volume (3M): 37.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -12.36%
• EPS Growth: -569.47%
• Country: US
• Employees: 688
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Machinery
• EPS (TTM): -0.62
• Shares Outstanding: 6,506,868
• 10 Day Avg. Volume: 48,682
• 30 Day Avg. Volume: 37,304
• PEG Ratio: 9.32
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.53
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: -4.78
• 1Y Price Target: $15.00
• Price Target Upside: -22.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $20.00 ▲(3.95%Upside)

Hurco Companies' stock score is primarily influenced by its challenging financial performance, with declining profitability and negative earnings affecting valuation. Overbought technical indicators suggest potential for a market correction. Despite some cash flow improvements, overall financial health remains a concern.

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 Companies generates revenue primarily through the sale of its machine tools and computer control systems. A significant portion of its income comes from the manufacturing and distribution of machine tools that are integrated with its proprietary control software, which provides added value to its customers by improving operational efficiency. The company caters to a diverse range of industries such as aerospace, defense, medical equipment, energy, and transportation, which require precision manufacturing. Hurco also earns revenue from the sales of software licenses, spare parts, and maintenance services, contributing to a recurring revenue stream. Additionally, the company has established a global presence through a network of subsidiaries and distributors, which helps in expanding its market reach and solidifying customer relationships.

Hurco Companies Financial Statement Overview

Summary

Hurco Companies faces significant operational challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet is stable due to low leverage but declining equity is a concern. Cash flow improvements are present but overshadowed by negative net income, indicating sustainability issues.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.58M	227.81M	250.81M	235.19M	170.63M
Gross Profit	39.81M	56.17M	64.48M	56.25M	36.46M
EBITDA	-5.74M	11.13M	15.82M	14.34M	-6.16M
Net Income	-16.61M	4.39M	8.23M	6.76M	-6.25M
Balance Sheet
Total Assets	268.64M	290.59M	306.24M	332.94M	295.65M
Cash, Cash Equivalents and Short-Term Investments	33.33M	41.78M	63.92M	84.06M	57.86M
Total Debt	11.68M	11.32M	8.79M	11.02M	12.12M
Total Liabilities	61.47M	68.36M	83.59M	94.52M	64.51M
Stockholders Equity	207.17M	222.23M	222.64M	238.42M	231.15M
Cash Flow
Free Cash Flow	-3.76M	-15.40M	-6.16M	29.81M	9.28M
Operating Cash Flow	-2.52M	-12.82M	-3.97M	32.17M	10.93M
Investing Cash Flow	-2.74M	-1.90M	-2.09M	-3.35M	-1.18M
Financing Cash Flow	-3.91M	-8.82M	-6.90M	-3.52M	-10.85M

Hurco Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HURC, the sentiment is Positive. The current price of 19.24 is below the 20-day moving average (MA) of 19.49, above the 50-day MA of 16.73, and above the 200-day MA of 18.48, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 61.42 is Neutral, neither overbought nor oversold. The STOCH value of 59.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HURC.

Hurco Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥269.20B	13.89	8.47%	2.88%	6.35%	13.11%
TAYD	70 Neutral	$144.26M	20.22	15.52%	―	-1.02%	-7.87%
TWIN	63 Neutral	$127.33M	30.89	2.77%	1.80%	11.49%	-66.66%
BWEN	58 Neutral	$57.40M	30.96	-1.24%	―	-25.94%	-108.22%
TPIC	45 Neutral	$43.30M	―	77.71%	―	1.71%	-3.55%
HURC	44 Neutral	$128.58M	―	-9.30%	1.15%	-12.36%	-569.47%

Hurco Companies Corporate Events

Hurco Companies Shareholders Approve Equity Plan Amendment

At the Annual Meeting of Shareholders held on March 13, 2025, Hurco Companies, Inc. shareholders approved an amendment to the company’s 2016 Equity Incentive Plan, adding 850,000 shares to the plan’s share reserve. Additionally, all eight director nominees were elected, executive compensation was approved on an advisory basis, and Deloitte & Touche LLP was ratified as the company’s independent registered public accounting firm for the fiscal year ending October 31, 2025.