One-glance verdict
Undervalued
$71.13 our estimate vs market $22.66
68% below our estimate, below the bear case
Fundamentals snapshot
Hurco Companies, Inc.
HURC · NMS · Industrials · Specialty Industrial Machinery
Current price
$22.66
52-week range
$14.50 - $24.49
Market cap
$146.75M
Balance sheet
Healthy
-115.37x Concerning
Net cash $42.25M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 2.6% last year.
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -3.3% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 5.1% to 5.1% over 3 years.
What this company does
Hurco Companies, Inc.
Hurco Companies builds and sells the large, computer-guided machines that other manufacturers use to precisely cut metal for things like car parts and medical devices. The company makes most of its money from these machine sales, along with related software and services. Because its customers are in core manufacturing industries like aerospace and energy, Hurco's business performance can often act as a signal for the health of the broader economy.
How the company got here
Hurco was founded in 1968 by Gerald Roch and Edward Humston with the idea of using computer technology to make manufacturing simpler for the average worker. A key moment was in 1976 when they invented and patented Conversational Programming, a way to give instructions to machines using simple, English-like terms instead of complex code. This innovation set the company's direction to focus on creating user-friendly computerized machine tools. Over the years, Hurco expanded globally, establishing operations in Europe and Asia, and grew by introducing new and more advanced machines.
What it actually does
Hurco is an industrial technology company that designs and sells computerized machine tools used by other companies to cut and shape metal parts. Think of the precise metal components inside a car engine, an airplane, or a medical device; Hurco's machines are what factories use to make those. Their main products are called machining centers and turning centers, which are large, automated tools that precisely carve metal blocks into finished parts. They also sell the complex software that runs these machines, along with service and replacement parts to keep them running.
Computerized Machine Tools and Systems
This is the company's main business, where it sells large, computer-controlled machines that cut and shape metal. Customers are typically independent job shops (smaller workshops that take on custom manufacturing jobs) and larger factories that need to produce small batches of specialized parts. The company sells these machines under three main brands: Hurco, which is its premium line; Milltronics, which is a more affordable option; and Takumi, which is known for high-precision work. This segment is the primary driver of the company's revenue (the total money it brings in from sales).
Service, Parts, and Software
Beyond selling the initial machines, Hurco makes money by providing ongoing support and products for those machines. This includes selling replacement parts, accessories, and software upgrades that add new capabilities. They also offer training to help customers use the machines effectively and provide repair services. While much smaller than the machine sales part of the business, this segment provides a more consistent and steady stream of revenue because machines always need maintenance and occasional upgrades.
What management is betting on now
Management is focused on making its machines smarter and more automated to address labor shortages in manufacturing. They are investing heavily in artificial intelligence (AI) and other advanced technologies to create what they call "Autonomous Machining Centers"—machines that can operate with less human oversight. The strategy is to use technology to make their customers more productive and profitable. They also aim to grow by developing new products and potentially acquiring other companies to expand their offerings in factory automation.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-1.66M
FY2025 Q1
$10.24M
FY2025 Q2
$689.00K
FY2025 Q3
$2.07M
FY2025 Q4
$3.65M
FY2026 Q1
$-687.00K
FY2026 Q2
$1.96M
FY2026 Q3
$3.47M
Revenue
$47.29M
Net income
$2.31M
Diluted EPS
0.35
Operating cash flow
$3.81M
Free cash flow
$3.47M
Fetching…
Sources
Revenue
$47.62M
Net income
$-2.37M
Diluted EPS
-0.37
Operating cash flow
$2.14M
Free cash flow
$1.96M
Fetching…
Sources
Revenue
$42.87M
Net income
$-3.47M
Diluted EPS
-0.54
Operating cash flow
$-616.00K
Free cash flow
$-687.00K
Fetching…
Sources
Revenue
$45.47M
Net income
$-3.04M
Diluted EPS
-0.47
Operating cash flow
$3.69M
Free cash flow
$3.65M
Fetching…
Sources
Revenue
$45.81M
Net income
$-3.69M
Diluted EPS
-0.58
Operating cash flow
$2.54M
Free cash flow
$2.07M
Fetching…
Sources
Revenue
$40.87M
Net income
$-4.06M
Diluted EPS
-0.62
Operating cash flow
$997.00K
Free cash flow
$689.00K
Fetching…
Sources
Revenue
$46.41M
Net income
$-4.32M
Diluted EPS
-0.67
Operating cash flow
$10.34M
Free cash flow
$10.24M
Fetching…
Sources
Revenue
$53.70M
Net income
$-1.44M
Diluted EPS
-0.23
Operating cash flow
$-1.21M
Free cash flow
$-1.66M
Fetching…
Sources
Is it cheap or expensive?
Fair value $71.13 vs current price $22.66
Our most-likely fair value is $71.13 a share — about 213.9% above today's price of $22.66, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $42.2M - more cash than debt. Interest coverage -115.4x.
Net debt
$-42.25M
Interest coverage
-115.37x
Hurco Companies, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
HURC
BASELINE
Hurco Companies, Inc.
Total debt $9.84M Interest coverage -115.37x This is the baseline the peer rows are being compared against.
Total debt $61.53M Interest coverage 3.98x This peer still has a real interest-payment cushion, while HURC does not.
Total debt $166.92M Interest coverage -0.38x Neither company has much profit cushion over interest right now.
Total debt $69.40M Interest coverage 11.29x This peer still has a real interest-payment cushion, while HURC does not.
Total debt $152.19M Interest coverage -18.47x Neither company has much profit cushion over interest right now.
What you should know
The case for and against HURC
2 Rewards
2 Risks
Rewards
-
Revenue grew 2.6% last year.
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -3.3% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 5.1% to 5.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
0.76x
P/S
0.80x
EV/EBITDA
-32.95x
PEG ratio
0.51x
Profitability
How much profit each dollar creates
Gross margin
21.4%
Operating margin
5.1%
Net margin
-3.6%
ROE
-3.3%
ROA
-1.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
3.98x
Quick ratio
1.41x
Total debt
$9.84M
Total cash
$52.09M
Growth
How the business has been compounding
Revenue TTM
$183.24M
Revenue 5Y CAGR
-6.7%
EPS TTM
-1.02
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$9.02M
Free CF TTM
$16.65M
FCF margin
9.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2024-03-27