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Hurco (HURC)
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Hurco Companies (HURC) AI Stock Analysis

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HURC

Hurco Companies

(NASDAQ:HURC)

Rating:44Neutral
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 (HURC) vs. SPDR S&P 500 ETF (SPY)

Hurco Companies Business Overview & Revenue Model

Company DescriptionHurco 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 MoneyHurco 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
40
Negative
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
65
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue186.58M227.81M250.81M235.19M170.63M
Gross Profit39.81M56.17M64.48M56.25M36.46M
EBITDA-5.74M11.13M15.82M14.34M-6.16M
Net Income-16.61M4.39M8.23M6.76M-6.25M
Balance Sheet
Total Assets268.64M290.59M306.24M332.94M295.65M
Cash, Cash Equivalents and Short-Term Investments33.33M41.78M63.92M84.06M57.86M
Total Debt11.68M11.32M8.79M11.02M12.12M
Total Liabilities61.47M68.36M83.59M94.52M64.51M
Stockholders Equity207.17M222.23M222.64M238.42M231.15M
Cash Flow
Free Cash Flow-3.76M-15.40M-6.16M29.81M9.28M
Operating Cash Flow-2.52M-12.82M-3.97M32.17M10.93M
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 Price19.24
Price Trends
50DMA
16.73
Positive
100DMA
16.13
Positive
200DMA
18.48
Positive
Market Momentum
MACD
0.75
Positive
RSI
61.42
Neutral
STOCH
59.48
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 Risk Analysis

Hurco Companies disclosed 18 risk factors in its most recent earnings report. Hurco Companies reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Hurco Companies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥269.20B13.898.47%2.88%6.35%13.11%
70
Neutral
$144.26M20.2215.52%-1.02%-7.87%
63
Neutral
$127.33M30.892.77%1.80%11.49%-66.66%
58
Neutral
$57.40M30.96-1.24%-25.94%-108.22%
45
Neutral
$43.30M77.71%1.71%-3.55%
44
Neutral
$128.58M-9.30%1.15%-12.36%-569.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HURC
Hurco Companies
19.99
1.85
10.20%
BWEN
Broadwind Energy
2.80
-0.56
-16.67%
TAYD
Taylor Devices
46.53
-2.58
-5.25%
TWIN
Twin Disc
8.88
-5.82
-39.59%
TPIC
TPI Composites
0.87
-3.91
-81.80%

Hurco Companies Corporate Events

Executive/Board ChangesShareholder Meetings
Hurco Companies Shareholders Approve Equity Plan Amendment
Neutral
Mar 17, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025