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Analyzing Hurco Companies, Inc.’s (NASDAQ:HURC) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess HURC’s recent performance announced on 31 October 2018 and compare these figures to its long-term trend and industry movements.
Commentary On HURC’s Past Performance
HURC’s trailing twelve-month earnings (from 31 October 2018) of US$21m has jumped 42% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.6%, indicating the rate at which HURC is growing has accelerated. How has it been able to do this? Let’s take a look at if it is solely a result of an industry uplift, or if Hurco Companies has experienced some company-specific growth.
In terms of returns from investment, Hurco Companies has fallen short of achieving a 20% return on equity (ROE), recording 9.6% instead. Furthermore, its return on assets (ROA) of 6.6% is below the US Machinery industry of 7.1%, indicating Hurco Companies’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Hurco Companies’s debt level, has increased over the past 3 years from 13% to 15%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 2.4% to 0.6% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Hurco Companies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Hurco Companies to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for HURC’s future growth? Take a look at our free research report of analyst consensus for HURC’s outlook.
- Financial Health: Are HURC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 October 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.