Hurco Companies (HURC) AI Stock Analysis

• Market Cap: $92.14M
• Dividend Yield: 0.96%
• Average Volume (3M): 18.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -13.86%
• EPS Growth: -1497.93%
• Country: US
• Employees: 688
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): -0.67
• Shares Outstanding: 6,483,990
• 10 Day Avg. Volume: 23,087
• 30 Day Avg. Volume: 18,705
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.55
• Price to Cash Flow (P/CF): 2.50
• P/FCF Ratio: 2.50
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Hurco Companies' stock is currently facing challenges with a declining trend in financial performance, especially in terms of revenue and profitability. While there are improvements in cash flow management, the negative net income remains a concern. Technical analysis shows mixed signals, with potential resistance at higher levels, and valuation metrics are unfavorable due to the company's unprofitability. The dividend yield provides a slight buffer. Overall, the stock is rated cautiously due to these significant headwinds.

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 makes money through the sale of its CNC machine tools and related equipment, which are its primary revenue streams. The company earns revenue by manufacturing and selling a variety of machine tools, including vertical machining centers and turning centers, which are used by manufacturers to create precision components. Additionally, Hurco generates income through the sale of software and control systems that enhance the functionality and efficiency of its machines. Service and support contracts also contribute to the company's revenue, as they provide ongoing maintenance and technical assistance to customers. Strategic partnerships with distributors and technology providers help expand its market reach and enhance its product offerings, further supporting its earnings.

Hurco Companies Financial Statement Overview

Summary

Hurco Companies faces significant operational challenges as reflected by its income statement, with declining revenue and profitability. The balance sheet remains relatively stable, supported by low leverage, but declining equity raises concerns. Cash flow improvements are a positive sign, yet the negative net income continues to exert pressure. Overall, the company needs strategic initiatives to address revenue decline and improve profitability for sustainable growth.

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
37.74M	227.81M	250.81M	235.19M	170.63M
	Gross Profit
37.74M	56.17M	64.48M	56.25M	36.46M
	EBIT
-8.29M	6.62M	7.81M	5.78M	-4.96M
	EBITDA
-5.74M	11.13M	15.82M	14.34M	-6.16M
	Net Income Common Stockholders
-16.61M	4.39M	8.23M	6.76M	-6.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.33M	41.78M	63.92M	84.06M	57.86M
	Total Assets
268.64M	290.59M	306.24M	332.94M	295.65M
	Total Debt
11.68M	11.32M	8.79M	11.02M	12.12M
	Net Debt
-21.65M	-30.47M	-55.13M	-73.05M	-45.74M
	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: 16.12
• 50DMA: Positive
• 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 Positive. The current price of 16.12 is above the 20-day moving average (MA) of 14.76, below the 50-day MA of 16.13, and below the 200-day MA of 18.79, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 64.93 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
TWIN	70 Outperform	$96.62M	10.16	6.42%	2.18%	9.23%	-16.27%
TAYD	70 Neutral	$100.06M	13.86	15.52%	―	-1.02%	-7.87%
BWEN	64 Neutral	$34.82M	29.27	2.00%	―	-29.65%	-84.94%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
HURC	49 Neutral	$92.14M	―	-9.12%	0.96%	-13.86%	-1497.93%
TPIC	40 Underperform	$43.53M	―	77.71%	―	-8.18%	-20.81%

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.