One-glance verdict
Undervalued
$5.39 our estimate vs market $4.01
26% below our estimate, below the bear case
Fundamentals snapshot
Toro Corp.
TORO · NCM · Energy · Oil & Gas Midstream
Current price
$4.01
52-week range
$3.30 - $8.50
Market cap
$138.59M
Balance sheet
Healthy
-68.26x Concerning
Net cash $79.12M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 2/10 years.
- Risk Operating margin compressed from 44.3% to -15.5% over 3 years.
What this company does
Toro Corp.
Toro Corp. owns and operates a couple of ships that carry liquid goods, and its main income comes from renting these ships out. This matters because their earnings are directly tied to how much they can charge for shipping, which can change a lot depending on global demand.
How the company got here
Toro Corp. was founded in 2022 and is based in Limassol, Cyprus. It was formerly known as Tankco Shipping Inc. and is a former subsidiary of Castor Maritime Inc. The company was established in connection with the distribution of Castor Maritime's tanker business to its shareholders in March 2023. Toro Corp. focuses on acquiring, owning, chartering, and operating oceangoing tanker vessels for the worldwide energy seaborne transportation of crude oil and refined petroleum products. The company's fleet has undergone changes, with a spin-off of its Handysize Tanker business planned for April 2025 to focus on higher-margin LPG carrier operations. This strategic shift aims to position Toro for growth in a specific segment of the shipping industry.
What it actually does
Toro Corp. is a shipping company that transports energy products across the globe. Think of them as a service that moves oil and liquefied petroleum gas (LPG) from where it's produced to where it's needed. They own and operate a fleet of specialized ships designed for this purpose. The company's business is all about managing these vessels, ensuring they are maintained to high standards, and chartering them out to customers who need to move these commodities. This is a crucial part of the global energy supply chain, connecting producers with consumers.
LPG Carrier Segment
This is Toro Corp.'s primary focus, making up about 60.7% of its revenue. The company operates liquefied petroleum gas (LPG) carriers, which are ships specifically designed to transport LPG, a type of fuel gas. These carriers are crucial for moving LPG, often used for heating and cooking, from production sites to markets worldwide. By concentrating on this segment, Toro aims to capitalize on what it sees as higher-margin opportunities within the energy shipping sector. This part of the business involves managing a fleet of these specialized vessels and chartering them to customers who require LPG transportation services.
Handysize Tanker Segment
This segment of Toro Corp. involves operating Handysize tankers, which are vessels used to transport crude oil and refined petroleum products. These ships are smaller than some other types of oil tankers, making them versatile for navigating various ports and routes. While historically a part of Toro's business, the company has announced plans to spin off this Handysize tanker business. This strategic move is intended to allow Toro to concentrate more resources and attention on its LPG carrier operations, which are viewed as having higher profit potential.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$10.66M
FY2025 Q4
$-73.11M
Revenue
$21.08M
Net income
$5.93M
Diluted EPS
0.08
Operating cash flow
$-6.34M
Free cash flow
$-73.11M
Fetching…
Sources
Revenue
$22.39M
Net income
$25.21M
Diluted EPS
1.09
Operating cash flow
$10.78M
Free cash flow
$10.66M
Fetching…
Sources
Is it cheap or expensive?
Fair value $5.39 vs current price $4.01
Our most-likely fair value is $5.39 a share — about 34.4% above today's price of $4.01, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $79.1M - more cash than debt. Interest coverage -68.3x.
Net debt
$-79.12M
Interest coverage
-68.26x
Toro Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
TORO
BASELINE
Toro Corp.
Total debt $0.00 Interest coverage -68.26x This is the baseline the peer rows are being compared against.
Total debt $100.98K Interest coverage 17.17x This peer still has a real interest-payment cushion, while TORO does not.
Total debt $83.18M Interest coverage 1.08x This peer still has a real interest-payment cushion, while TORO does not.
Total debt $62.66M Interest coverage 10.33x This peer still has a real interest-payment cushion, while TORO does not.
Total debt $37.50M Interest coverage 74.24x This peer still has a real interest-payment cushion, while TORO does not.
Total debt $310.05M Interest coverage 5.77x This peer still has a real interest-payment cushion, while TORO does not.
What you should know
The case for and against TORO
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Operating margin compressed from 44.3% to -15.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
0.67x
P/S
5.68x
EV/EBITDA
472.62x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
55.2%
Operating margin
-15.5%
Net margin
16.4%
ROE
1.2%
ROA
-0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
20.86x
Quick ratio
19.00x
Total debt
$0.00
Total cash
$79.12M
Growth
How the business has been compounding
Revenue TTM
$233.83M
Revenue 5Y CAGR
-7.9%
EPS TTM
-0.13
EPS 5Y CAGR
-75.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$102.10M
Free CF TTM
$-73.11M
FCF margin
-31.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2026-05-04