Hurco Companies Inc. Stock Upgraded (HURC)
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
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NEW YORK (
)
(Nasdaq:
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- HURC's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
- HURCO COMPANIES INC's earnings per share declined by 12.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HURCO COMPANIES INC turned its bottom line around by earning $1.71 versus -$0.89 in the prior year. This year, the market expects an improvement in earnings ($2.34 versus $1.71).
- HURC, with its decline in revenue, slightly underperformed the industry average of 1.0%. Since the same quarter one year prior, revenues slightly dropped by 1.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Machinery industry and the overall market, HURCO COMPANIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
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Hurco Companies, Inc., an industrial technology company, engages in the design, manufacture, and sale of computerized machine tools worldwide. The company has a P/E ratio of 10.6, below the S&P 500 P/E ratio of 17.7. Hurco Companies has a market cap of $149.3 million and is part of the technology sector and electronics industry. Shares are up 10.2% year to date as of the close of trading on Monday.
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Hurco Companies Ratings Report
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-- Written by a member of TheStreet Ratings Staff
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
.
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