Hurco Companies (HURC) AI Stock Analysis

• Market Cap: $110.78M
• Dividend Yield: N/A
• Average Volume (3M): 37.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -6.13%
• EPS Growth: -6.61%
• Country: US
• Employees: 688
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.47
• Shares Outstanding: 6,414,616
• 10 Day Avg. Volume: 19,216
• 30 Day Avg. Volume: 37,927
• PEG Ratio: 0.89
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.96
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: -8.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $16.50 ▼(-4.46% Downside)

The score is held back primarily by weakening fundamentals (multi-year revenue declines, compressed margins, and current net losses). Strengths that partially offset this are the conservative balance sheet and the sharp rebound to positive operating and free cash flow in 2025. Technicals are mildly supportive in the short term, while valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Conservative balance sheet and low leverage

Very low leverage and sizable equity provide structural financial flexibility across cycles. This reduces bankruptcy risk, supports investment in product development or working capital during downturns, and preserves optionality for strategic moves without relying on volatile debt markets.

Rebound to positive operating and free cash flow

A return to consistent positive cash generation strengthens the company’s ability to fund capex, R&D, and service working capital from operations rather than external financing. If sustained, this improves long-term self-funding capacity and resilience through industry cycles.

Planned management succession and leadership upgrades

Formal succession planning and leadership transitions preserve institutional knowledge while refreshing operating management. Clear board-led transitions reduce execution risk, enable sharper commercial focus in key markets, and can improve long-term strategic execution if new leaders maintain continuity.

Negative Factors

Multi-year revenue declines

Sustained top-line contraction erodes scale, reduces bargaining power with suppliers, and pressures fixed-cost absorption. Continued revenue declines can lead to structurally lower margins and make it harder to fund long-term R&D or market expansion, weakening competitive position over time.

Margin compression and current loss-making operations

Material margin deterioration and negative net margins signal structural profitability pressures—pricing, mix, or cost issues—that threaten sustainable earnings power. Without durable margin recovery, the business may struggle to generate returns on capital or rebuild equity over the medium term.

Historically volatile cash generation despite recent rebound

Intermittent cash flow undermines predictability for reinvestment and increases reliance on balance-sheet insulation. Volatility raises the risk that a future downturn could force cutbacks, capital constraints, or dilutive financing, limiting long-term strategic flexibility if not stabilized.

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 its CNC machine tools, which are sold to manufacturers across various industries, including aerospace, automotive, and medical device production. The company also earns income through the sale of parts and accessories, as well as service contracts for ongoing maintenance and support for its equipment. A key revenue stream comes from its software solutions, which are bundled with its machinery or sold separately to enhance the operational capabilities of its products. Additionally, Hurco has established partnerships with distributors and resellers around the globe, expanding its market reach and contributing to its earnings. Factors such as innovation in product development, customer service, and a growing demand for automation in manufacturing processes further support Hurco's financial performance.

Hurco Companies Financial Statement Overview

Summary

Operations are the main drag: revenue has declined three straight years and profitability has deteriorated to meaningful losses (2025 net margin ~-8.5%) with margin compression (gross margin ~18.5% vs. ~24.7% in 2023). Offsetting this, the balance sheet is conservatively levered (debt-to-equity ~0.04–0.06) and 2025 cash flow rebounded strongly with positive operating cash flow (~$17.6M) and free cash flow (~$16.7M), despite historical volatility.

Income Statement

Profitability has deteriorated materially after a profitable 2022–2023 period. Revenue has declined for three straight years (2023: -9.17%, 2024: -0.18%, 2025: -4.41%), and margins have compressed alongside the downturn (2025 gross margin ~18.5% vs. ~24.7% in 2023). The company is currently loss-making (2025 net margin ~-8.5%, negative EBIT), which is the key drag, partially offset by a history of positive earnings in prior years.

Balance Sheet

Balance sheet leverage appears conservative, with low debt relative to equity across the period (debt-to-equity ~0.04–0.06), providing flexibility through the cycle. Equity remains sizable (about $199M in 2025), though it has trended down from 2021–2025, consistent with recent losses. Returns on equity are currently negative (2024–2025), but the overall capital structure looks stable and not debt-stressed.

Cash Flow

Cash generation improved sharply in 2025, with positive operating cash flow (~$17.6M) and positive free cash flow (~$16.7M), representing a large rebound from negative free cash flow in 2023–2024. However, cash flow has been volatile over time (negative operating/free cash flow in multiple years), and operating cash flow relative to the latest-year net loss is not consistently strong across the period. Still, the most recent year shows solid cash conversion despite reported losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	178.55M	186.58M	227.81M	250.81M	235.19M
Gross Profit	32.98M	37.74M	56.17M	64.48M	56.25M
EBITDA	-9.39M	-5.74M	11.13M	15.82M	14.34M
Net Income	-15.12M	-16.61M	4.39M	8.23M	6.76M
Balance Sheet
Total Assets	264.30M	268.64M	290.59M	306.24M	332.94M
Cash, Cash Equivalents and Short-Term Investments	48.71M	33.33M	41.78M	63.92M	84.06M
Total Debt	11.93M	11.68M	11.32M	8.79M	11.02M
Total Liabilities	65.51M	61.47M	68.36M	83.59M	94.52M
Stockholders Equity	198.79M	207.17M	222.23M	222.64M	238.42M
Cash Flow
Free Cash Flow	16.65M	-3.76M	-15.40M	-6.16M	29.81M
Operating Cash Flow	17.56M	-2.52M	-12.82M	-3.97M	32.17M
Investing Cash Flow	-1.25M	-2.74M	-1.90M	-2.09M	-3.35M
Financing Cash Flow	-2.35M	-3.91M	-8.82M	-6.90M	-3.52M

Hurco Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 17.27 is above the 20-day moving average (MA) of 16.14, above the 50-day MA of 16.01, and above the 200-day MA of 16.74, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 62.28 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
TAYD	80 Outperform	$234.84M	24.72	15.12%	―	-3.64%	-4.12%
TWIN	66 Neutral	$276.18M	789.92	0.22%	0.95%	14.24%	-96.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVV	53 Neutral	$29.41M	-156.46	-0.73%	―	19.84%	95.71%
HURC	52 Neutral	$110.78M	-7.38	-6.59%	―	-6.13%	-6.61%
BURU	35 Underperform	$77.13M	-0.14	―	―	-98.20%	93.77%

Hurco Companies Corporate Events

Hurco Companies Announces Executive Chairman Retirement

On November 12, 2025, Michael Doar announced his retirement from his role as Executive Chairman of Hurco Companies, effective at the 2026 Annual Meeting of Shareholders. Despite stepping down from his executive position, the Board has nominated him to continue as a non-executive Chairman, reflecting his significant contributions over two decades, including his roles as President and CEO. The transition is part of Hurco’s long-term succession planning and is not due to any disagreement. This move is expected to maintain continuity in leadership while allowing the company to leverage Doar’s extensive industry experience and insights in his new role.

The most recent analyst rating on (HURC) stock is a Hold with a $18.50 price target. To see the full list of analyst forecasts on Hurco Companies stock, see the HURC Stock Forecast page.