DEEP VALUE REPORT — Hurco Companies, Inc. (HURC)
Hurco is not priced like a solvent, net-cash industrial with a massive working-capital base and a real product footprint.
It’s priced like a “small cyclical that loses money, so who cares.”
That’s the surface story.
The deeper story is a per-share asset file inside a machine-tool cycle — where the question is not “do you like CNC demand,” but what is being paid for the asset base while the cycle is ugly, and whether the business can get back to “normal” profitability without dilution or debt gymnastics.
What it is, why it misprices, and what the market is missing.
Below, the full operator stack: per-share reality check, one-screen SOTP, asset map, replacement-cost bands, insiders/holders (with what’s proven vs what must be verified), five-year rewind, THE CLOCK, Bear/Base/Bull mechanics, Proof Next, and What breaks it.
What this business actually is
Hurco sells CNC machine tools and the related controls/software, plus parts and service tied to the installed base. This is not a “multiple expansion on a pretty narrative” file. It’s a cycle + inventory conversion + channel behavior file.
What matters here is not how cheap earnings look today (they don’t). What matters is whether the asset base is being mis-marked by mood.
Where the market quits and where deep value starts
Two things can be true at once:
The cycle can be bad and reported profit can be negative.
The balance sheet can still be dominated by real current assets (cash, receivables, inventory), with no obvious solvency cliff.
In this setup, most coverage stops at “cyclical down / wait for recovery.”
Deep value starts when the file is forced per share and the difference between book assets and realizable assets is treated as the whole game.
Everything below is the full operator file — the per-share math the market is skipping:
one-screen asset-floor SOTP, replacement-cost bands, insider/holder proof, the timer, Bear/Base/Bull value bands, and the single Proof-Next checklist that will confirm or kill the thesis.