Toro Corp. (TORO) AI Stock Analysis

• Market Cap: $117.25M
• Dividend Yield: N/A
• Average Volume (3M): 665.51K
• Price to Earnings (P/E): 1092.0
• Beta (1Y): 0.96
• Revenue Growth: -30.68%
• EPS Growth: -98.19%
• Country: US
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): N/A
• Shares Outstanding: 21,473,509
• 10 Day Avg. Volume: 350,800
• 30 Day Avg. Volume: 665,510
• PEG Ratio: -0.02
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 3.39
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 7.01
• Enterprise Value/Ebitda: 5.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $5.50 ▼(-5.82% Downside)

The score is held back primarily by weak and erratic cash generation and uneven core profitability despite a strong, low-leverage balance sheet. Technicals are supportive with a clear uptrend and positive momentum, but valuation is a major headwind due to the extremely high P/E.

Positive Factors

Balance Sheet Strength

A strong balance sheet with zero debt provides financial stability and flexibility, allowing Toro Corp. to navigate market fluctuations and invest in growth opportunities without the burden of interest obligations.

Strategic Fleet Management

Strategic fleet management through acquisitions and disposals enhances operational efficiency and aligns the fleet with market demand, potentially improving profitability and competitive positioning in the maritime industry.

Special Dividend Declaration

The special dividend reflects strong shareholder returns and financial health, potentially increasing investor confidence and attractiveness, while underscoring Toro Corp.'s commitment to returning value to shareholders.

Negative Factors

Cash Flow Concerns

Erratic cash flow patterns and negative free cash flow raise concerns about Toro Corp.'s ability to sustain operations and fund future growth, potentially impacting long-term financial health and operational stability.

Revenue Decline

A significant decline in revenue indicates potential challenges in market demand or competitive pressures, which could affect Toro Corp.'s ability to generate consistent income and maintain market share over time.

Volatile Earnings Quality

Volatile earnings and operating losses suggest instability in core operations, which may hinder Toro Corp.'s ability to deliver consistent profitability and could affect investor confidence in the company's long-term prospects.

Toro Corp. Business Overview & Revenue Model

Company Description

Toro Corp. acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil and refined petroleum products worldwide. The company operates through Aframax/LR2 tanker and Handysize tanker segments. It operates a fleet of eight tanker vessels with an aggregate cargo carrying capacity of 0.7 million dwt. The company was incorporated in 2022 and is headquartered in Limassol, Cyprus.

How the Company Makes Money

Toro Corp. generates revenue through the sale of its diverse range of outdoor maintenance equipment and machinery. The company earns money from both direct sales to consumers and through a network of distributors and retailers who stock Toro products. In addition to product sales, Toro offers aftermarket parts and services, which provide a steady stream of income from maintenance and repair needs. The company also benefits from strategic partnerships and collaborations with landscaping professionals and commercial businesses that use Toro products for large-scale projects. These relationships often lead to bulk purchases and long-term contracts, further enhancing Toro's revenue streams.

Toro Corp. Financial Statement Overview

Summary

Toro Corp. faces significant challenges with declining revenues and operational profitability. Despite a strong equity position and no debt, the company struggles with cash flow inefficiencies and operational challenges that pose risks to its financial stability.

Income Statement

Toro Corp. shows a volatile revenue trajectory with a significant decline in 2024 compared to previous years. Gross profit margin has dramatically decreased, and EBIT has turned negative, indicating operational challenges. However, the net profit margin remains positive due to an extraordinary gain in 2024, suggesting one-time income events rather than sustainable earnings.

Balance Sheet

The company maintains a solid equity base with no debt in the latest year, which is a positive sign of financial stability. The equity ratio is high, indicating a substantial buffer for liabilities, but the declining trend in total assets and equity from 2023 to 2024 could signal potential headwinds.

Cash Flow

Operating cash flow has decreased significantly, impacting the company's ability to generate cash from core operations. The free cash flow turned positive in 2024 but is primarily driven by reduced capital expenditures rather than operational improvements. The operating cash flow to net income ratio suggests weaker cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.11M	22.39M	78.47M	15.64M	29.26M
Gross Profit	3.81M	4.67M	53.23M	11.14M	154.91K
EBITDA	4.87M	10.64M	15.81M	8.34M	3.10M
Net Income	5.49M	25.21M	140.64M	49.93M	-1.43M
Balance Sheet
Total Assets	388.13M	326.41M	308.10M	157.48M	124.05M
Cash, Cash Equivalents and Short-Term Investments	29.50M	37.42M	155.24M	41.78M	4.96M
Total Debt	0.00	0.00	5.21M	13.07M	16.00M
Total Liabilities	6.80M	4.70M	11.76M	16.98M	20.02M
Stockholders Equity	381.33M	321.71M	296.34M	140.50M	104.03M
Cash Flow
Free Cash Flow	-92.01M	14.44M	-16.11M	40.69M	-115.70M
Operating Cash Flow	-14.13M	14.56M	56.13M	41.54M	-4.42M
Investing Cash Flow	-144.45M	-122.57M	50.71M	11.79M	-111.29M
Financing Cash Flow	-13.52M	-10.39M	6.27M	-16.51M	121.37M

Toro Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TORO, the sentiment is Neutral. The current price of 5.84 is above the 20-day moving average (MA) of 5.57, above the 50-day MA of 4.77, and above the 200-day MA of 3.20, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 34.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TORO.

Toro Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TORO	56 Neutral	$117.25M	1,092.00	1.57%	―	-30.68%	-98.19%
EDRY	56 Neutral	$38.44M	-3.47	-11.12%	―	-20.95%	-77.49%
PXS	52 Neutral	$33.87M	-13.92	0.28%	―	-23.25%	-107.24%
GLBS	51 Neutral	$34.37M	-7.43	-2.63%	―	18.49%	-264.74%
SVRN	46 Neutral	$37.35M	―	―	―	35.58%	-64.91%
HMR	43 Neutral	$50.61M	-1.55	―	―	―	―

Toro Corp. Corporate Events

Toro Corp. and Castor Maritime Push Back Convertible Preferred Share Conversion Dates

On December 23, 2025, Toro Corp. and Castor Maritime Inc. agreed to amend the terms of their cross-held convertible preferred shares, extending the initial conversion dates on Castor’s 5.00% Series D Cumulative Perpetual Convertible Preferred Shares held by a Toro subsidiary to January 1, 2027, and on Toro’s 1.00% Series A Fixed Rate Cumulative Perpetual Convertible Preferred Shares held by a Castor subsidiary to March 7, 2027. The amendments, approved by both boards following recommendations from special committees of disinterested and independent directors, effectively push out the potential equity conversion timetable in this related-party capital structure, preserving the existing balance of ownership and control between the two affiliated companies while deferring any dilutive impact for current common shareholders.

Toro Corp. Announces Special Dividend with Shareholder Options

On December 17, 2025, Toro Corp. notified its shareholders of a $1.75 per share special dividend, declared earlier on December 5, 2025 and set to be distributed on January 16, 2026. This dividend allows shareholders to choose to receive it in either cash or common shares, with specific election guidelines outlined for registered and beneficial holders. Due to the significant size of the dividend relative to the company’s stock price, Nasdaq has implemented a due bills period from December 16, 2025, to January 16, 2026, ensuring that all eligible shareholders retain dividend rights during this period. This move underscores Toro Corp.’s commitment to shareholder returns, which may enhance its positioning and attractiveness in the marketplace.

Toro Corp. Announces Q3 2025 Financial Results and Strategic Moves

Toro Corp. reported its financial results for the three and nine months ended September 30, 2025, showing a net income of $1.3 million and $4.3 million, respectively. The company experienced a 30% increase in net income for the third quarter compared to the previous year, despite a slight decrease in total vessel revenues for the nine-month period. Notable events included the acquisition and disposal of vessels, as well as a significant investment in Castor Maritime Inc., which was later redeemed. These activities underscore Toro’s strategic fleet management and financial stability, although the decrease in cash reserves indicates tighter liquidity.

Toro Corp. Declares Special Dividend Amidst Strategic Financial Move

On December 5, 2025, Toro Corp. announced a special dividend of $1.75 per common share, payable in cash or company shares, to shareholders of record on December 16, 2025, with payment expected on January 16, 2026. This dividend, representing more than 25% of the trading price of the company’s shares, will result in the shares trading with ‘due bills’ as advised by Nasdaq, impacting trading and dividend entitlements during the specified period.

Toro Corp. Announces $12.5 Million ATM Offering Agreement

On November 13, 2025, Toro Corp. announced an ‘at-the-market’ offering agreement with Maxim Group LLC, allowing the company to sell common shares worth up to $12.5 million. The proceeds from this offering will be used for capital expenditures, working capital, vessel acquisitions, and other corporate purposes. This strategic move is expected to enhance Toro Corp.’s operational capabilities and market positioning by providing financial flexibility for growth and expansion.

Toro Corp. and Castor Maritime Finalize Series E Preferred Shares Redemption

On October 13, 2025, Toro Corp. and Castor Maritime Inc. agreed to fully redeem 60,000 shares of Castor’s 8.75% Series E cumulative perpetual convertible preferred shares for cash. This decision, approved by both companies’ boards and recommended by their independent directors, reflects strategic financial management and may impact the companies’ financial positioning and shareholder value.