Hurco Companies Inc. Common Stock (HURC)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Hurco as a small, cyclical industrial technology business, not a wide-moat franchise. It designs computer-controlled machine tools for metal cutting, employs 651 people, and at $21.29 on 2026-10-26 has a $137.9M market cap. The attraction is balance-sheet value and resilience: P/B is 0.72, debt-to-equity is only 0.05, trailing free cash flow is $5.9M, and the FCF yield is 4.3%. Piotroski is 7/9 and Altman 2.97, so this does not look like a leveraged failure. But the income record is poor. Fiscal 2024 lost $16.6M, or $2.56 per diluted share, on $186.6M revenue; fiscal 2025 lost $15.1M, or $2.34 per share, on $178.6M revenue. Fiscal 2023 earned only $4.4M, or $0.66 per share, on $227.8M revenue, so the downturn has been deep. The latest fiscal Q3 2026, the quarter ended 2026-07-31, was encouraging: revenue $47.3M, net income $2.3M, diluted EPS $0.35. Yet fiscal Q1 2026 lost $3.5M and fiscal Q2 2026 lost $2.4M, so one good quarter does not prove a turnaround. ROE of -3.32% and ROCE of -1.02% are FairStock calculations showing weak current returns, and the FairStock P/E of -20.87 reflects trailing losses. The Lynch category is TURNAROUND—loss in latest year after earlier profits—and FairStock score is 52/100. I would require evidence that Q3 profitability is repeatable and that revenue and margins recover before calling this a bargain rather than a value trap. The low P/B and low debt provide a margin of safety, but the business quality is unproven.

In plain English: Hurco makes computer-controlled machine tools used to cut metal. The business has been weak: it lost money in fiscal 2024 and fiscal 2025, though the latest quarter showed a small profit. At $21.29, the price is low compared with the value of its assets on the books, but profits are not steady enough to call the stock clearly cheap.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-31) · fiscal Q2 2026 10-Q (period ended 2026-04-30) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-07-31) · FY2025 10-K (period ended 2025-10-31) · FY2024 10-K (period ended 2024-10-31) · FY2023 10-K (period ended 2023-10-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer