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Hurco Companies (HURC)
NASDAQ:HURC

Hurco Companies (HURC) AI Stock Analysis

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Hurco Companies

(NASDAQ:HURC)

Rating:44Neutral
Price Target:
$20.00
▼(-2.44%Downside)
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. is an industrial technology company that operates in the machine tool sector. The company specializes in the design and manufacturing of interactive computer control systems and software, as well as automated, computerized machine tools for the metal cutting and metal forming industries. Hurco's core products include computerized machine tools such as vertical machining centers, horizontal machining centers, and turning centers that are equipped with proprietary software, which enhances the productivity and efficiency of manufacturing processes.
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 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue183.63M186.58M227.81M250.81M235.19M170.63M
Gross Profit36.15M39.81M56.17M64.48M56.25M36.46M
EBITDA-6.07M-5.74M11.13M15.82M14.34M-6.16M
Net Income-19.42M-16.61M4.39M8.23M6.76M-6.25M
Balance Sheet
Total Assets262.47M268.64M290.59M306.24M332.94M295.65M
Cash, Cash Equivalents and Short-Term Investments43.81M33.33M41.78M63.92M84.06M57.86M
Total Debt11.66M11.68M11.32M8.79M11.02M12.12M
Total Liabilities60.19M61.47M68.36M83.59M94.52M64.51M
Stockholders Equity202.28M207.17M222.23M222.64M238.42M231.15M
Cash Flow
Free Cash Flow6.58M-3.76M-15.40M-6.16M29.81M9.28M
Operating Cash Flow9.51M-2.52M-12.82M-3.97M32.17M10.93M
Investing Cash Flow-2.75M-2.74M-1.90M-2.09M-3.35M-1.18M
Financing Cash Flow-2.40M-3.91M-8.82M-6.90M-3.52M-10.85M

Hurco Companies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.50
Price Trends
50DMA
15.45
Positive
100DMA
16.28
Positive
200DMA
18.44
Positive
Market Momentum
MACD
1.19
Negative
RSI
82.69
Negative
STOCH
95.98
Negative
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 20.5 is above the 20-day moving average (MA) of 15.95, above the 50-day MA of 15.45, and above the 200-day MA of 18.44, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 82.69 is Negative, neither overbought nor oversold. The STOCH value of 95.98 is Negative, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
$139.46M19.3215.52%-1.02%-7.87%
65
Neutral
$136.95M33.222.77%1.65%11.49%-66.66%
65
Neutral
$10.77B15.805.51%1.90%3.03%-26.66%
57
Neutral
$41.74M30.96-1.24%-25.94%-108.22%
44
Neutral
$133.39M-9.30%1.15%-12.36%-569.47%
40
Underperform
$47.57M77.71%1.71%-3.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HURC
Hurco Companies
20.50
5.44
36.12%
BWEN
Broadwind Energy
1.84
-1.35
-42.32%
TAYD
Taylor Devices
44.46
2.26
5.36%
TWIN
Twin Disc
9.68
-2.66
-21.56%
TPIC
TPI Composites
0.98
-2.86
-74.48%

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