| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 700.98 | 3513 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 14.29 | -26 |
| Graham Formula | 23.26 | 20 |
Hurco Companies, Inc. (NASDAQ: HURC) is a leading industrial technology company specializing in computerized machine tools for the metal cutting industry. Operating globally, Hurco designs, manufactures, and sells vertical and horizontal machining centers, turning centers, and toolroom machines under its Hurco, Milltronics, and Takumi brands. The company also provides advanced computer control systems, automation solutions, and software for press brake applications, catering to job shops and specialized short-run production in industries like aerospace, defense, medical equipment, and automotive. With a strong focus on precision and innovation, Hurco supports its customers through software upgrades, replacement parts, and comprehensive service offerings. Headquartered in Indianapolis, Indiana, Hurco serves a diverse clientele via direct sales and a network of independent distributors, reinforcing its position in the industrial machinery sector.
Hurco Companies presents a mixed investment profile. The company operates in a niche but cyclical industry, with exposure to key manufacturing sectors. While its diversified product portfolio and global distribution network provide stability, recent financials show challenges, including negative net income ($-16.6M) and diluted EPS ($-2.56). The company maintains a solid cash position ($33.3M) and low debt ($11.7M), but negative operating cash flow ($-2.5M) raises concerns. Its low beta (0.504) suggests lower volatility relative to the market, but investors should weigh its exposure to industrial demand cycles against its technological expertise and aftermarket service revenue streams.
Hurco competes in the computerized machine tools market by emphasizing precision, flexibility, and user-friendly control systems. Its competitive advantage lies in proprietary software and control interfaces that enhance productivity for small-to-medium batch production, a key demand driver in job shops and specialized manufacturing. Unlike larger industrial machinery players, Hurco focuses on mid-range CNC machines, balancing performance and affordability. However, it faces stiff competition from global giants with broader R&D budgets and integrated automation solutions. Hurco’s direct service and distributor network provide localized support, but its smaller scale limits economies of scale in production. The company’s Milltronics and Takumi brands cater to cost-conscious buyers, while its flagship Hurco line targets higher-end applications. Its niche positioning shields it from pure low-cost competition but exposes it to pricing pressure from vertically integrated rivals.