MeritValue

HURCO COMPANIES INC

HURCdata completeness 88%17 fiscal years on file
The thesis, from the filings

HURCO COMPANIES INC earns about 0% on invested capital, and has bought back 2% of its shares over 5 years. The applicable estimate puts fair value near $7.04 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$235.2M1$250.8M2$227.8M3$186.6M3$178.6M3
Net income$6.76M4$8.23M5$4.39M6−$16.6M6−$15.1M6
Operating cash flow$32.2M7−$3.97M8−$12.8M9−$2.52M9$17.6M9
Capital expenditure$1.26M10$1.11M11$1.29M12$1.24M12$910,00012
Free cash flow (derived)$30.9M7−$5.07M8−$14.1M9−$3.76M9$16.7M9
Total debt—————
Cash & equivalents$84.1M13$63.9M14$41.8M15$33.3M16$48.7M16
Diluted shares6.6M6.6M6.5M6.5M6.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$307.91
your share of equity
Profit it earned you last year
−$23.42
Free cash flow it threw off
$25.79
Debt you’d be carrying
—

10 shares is a claim on $307.91 of net worth that earned you −$23.42 and generated $25.79 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
0% avg · 5y
FY21 4%FY22 5%FY23 3%FY24 -4%FY25 -6%

It earned an average 0% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−2% shares · 5y

Share count is down 2% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$7.04
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$4.39M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-10-31 · accession 0001558370-24-000115 (Revenues)
  2. 10-K · period ending 2022-10-31 · accession 0001558370-25-000129 (Revenues)
  3. 10-K · period ending 2023-10-31 · accession 0001104659-26-002512 (Revenues)
  4. 10-K · period ending 2021-10-31 · accession 0001558370-24-000115 (NetIncomeLoss)
  5. 10-K · period ending 2022-10-31 · accession 0001558370-25-000129 (NetIncomeLoss)
  6. 10-K · period ending 2023-10-31 · accession 0001104659-26-002512 (NetIncomeLoss)
  7. 10-K · period ending 2021-10-31 · accession 0001558370-24-000115 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-10-31 · accession 0001558370-25-000129 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-10-31 · accession 0001104659-26-002512 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-10-31 · accession 0001558370-24-000115 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-10-31 · accession 0001558370-25-000129 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-10-31 · accession 0001104659-26-002512 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-10-31 · accession 0001558370-23-000097 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-10-31 · accession 0001558370-24-000115 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-10-31 · accession 0001558370-25-000129 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-10-31 · accession 0001104659-26-002512 (CashAndCashEquivalentsAtCarryingValue)