NasdaqGS:HURC

Stock Analysis Report

Executive Summary

Hurco Companies, Inc., an industrial technology company, designs, manufactures, and sells computerized machine tools to companies in the metal cutting industry worldwide.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Hurco Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

HURC

3.2%

US Machinery

1.0%

US Market


1 Year Return

-22.9%

HURC

2.3%

US Machinery

6.7%

US Market

Return vs Industry: HURC underperformed the US Machinery industry which returned 2.3% over the past year.

Return vs Market: HURC underperformed the US Market which returned 6.7% over the past year.


Share holder returns

HURCIndustryMarket
7 Day0.8%3.2%1.0%
30 Day-2.1%-3.5%-1.8%
90 Day-10.3%-4.6%-1.8%
1 Year-21.8%-22.9%4.5%2.3%9.1%6.7%
3 Year22.4%18.2%46.3%36.8%46.1%36.6%
5 Year5.5%-0.3%60.6%41.3%66.9%48.6%

Price Volatility Vs. Market

How volatile is Hurco Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hurco Companies undervalued based on future cash flows and its price relative to the stock market?

9.29x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: HURC ($32.4) is trading above our estimate of fair value ($5.97)

Significantly Undervalued: HURC is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: HURC is good value based on its PE Ratio (9.3x) compared to the Machinery industry average (19.7x).

PE vs Market: HURC is good value based on its PE Ratio (9.3x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate HURC's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: HURC is good value based on its PB Ratio (0.9x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Hurco Companies expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HURC's forecast earnings growth (14.8% per year) is above the savings rate (2.7%).

Earnings vs Market: HURC's earnings (14.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: HURC's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if HURC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if HURC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if HURC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hurco Companies performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HURC's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: HURC's earnings growth over the past year (19%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: HURC earnings growth over the past year (19%) exceeded the Machinery industry 18.7%.


Return on Equity

High ROE: HURC's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: HURC has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: HURC has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hurco Companies's financial position?


Financial Position Analysis

Short Term Liabilities: HURC's short term assets ($270.8M) exceeds its short term liabilities ($64.1M)

Long Term Liabilities: HURC's short term assets (270.8M) exceeds its long term liabilities (5.8M)


Debt to Equity History and Analysis

Debt Level: HURC is debt free.

Reducing Debt: HURC has no debt compared to 5 years ago when its debt to equity ratio was 2%.

Debt Coverage: HURC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HURC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: HURC has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HURC's debt is covered by short term assets.


Next Steps

Dividend

What is Hurco Companies's current dividend yield, its reliability and sustainability?

1.48%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: HURC's dividend (1.48%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: HURC's dividend (1.48%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Whilst dividend payments have been stable, HURC has been paying a dividend for less than 10 years.

Growing Dividend: HURC's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.2%), HURC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Hurco Companies's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Michael Doar (64yo)

17.9yrs

Tenure

US$2,633,537

Compensation

Mr. Michael Doar serves as Chief Executive Officer at Hurco Companies Inc. since November 14, 2001 and served as its President since October 31, 2009 until March 2013. Mr. Doar served as a Vice President o ...


CEO Compensation Analysis

Compensation vs. Market: Michael's total compensation ($USD2.63M) is about average for companies of similar size in the US market ($USD1.17M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.6yrs

Average Tenure

54yo

Average Age

Experienced Management: HURC's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

62yo

Average Age

Experienced Board: HURC's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,30629 Nov 18
Janaki Sivanesan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares34
Max PriceUS$38.41

Ownership Breakdown


Management Team

  • Michael Doar (64yo)

    Chairman & CEO

    • Tenure: 17.9yrs
    • Compensation: US$2.63m
  • Sonja McClelland (47yo)

    Executive VP

    • Tenure: 5.6yrs
    • Compensation: US$1.20m
  • Greg Volovic (54yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$1.73m

Board Members

  • Bob Cruickshank (73yo)

    Presiding Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$104.96k
  • Michael Doar (64yo)

    Chairman & CEO

    • Tenure: 17.9yrs
    • Compensation: US$2.63m
  • Jay Longbottom (66yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$99.96k
  • Janu Sivanesan (47yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$94.96k
  • Cynthia Dubin (57yo)

    Independent Director

    • Tenure: 0.6yrs
  • Greg Volovic (54yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$1.73m
  • Andrew Niner (41yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$89.96k
  • Richard Porter (63yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$94.96k
  • Thomas Aaro (61yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$94.96k
  • Tim Gardner (63yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$93.71k

Company Information

Hurco Companies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hurco Companies, Inc.
  • Ticker: HURC
  • Exchange: NasdaqGS
  • Founded: 1968
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$219.258m
  • Shares outstanding: 6.77m
  • Website: https://www.hurco.com

Number of Employees


Location

  • Hurco Companies, Inc.
  • One Technology Way
  • Indianapolis
  • Indiana
  • 46268
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HURCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1980

Biography

Hurco Companies, Inc., an industrial technology company, designs, manufactures, and sells computerized machine tools to companies in the metal cutting industry worldwide. The company offers general purpose ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:21
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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