Toro Corp. (TORO)
Valuation Overview•Is Toro Corp. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 37/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
TORO struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($37M) and minimal debt risk.
The company is facing top-line contraction (-8.5% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-26.5%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.3M | -71.5% | -8.5% | — | — | |
| EBITDA | $250K | — | — | — | — | |
| Net Income | $1.5M | -82.1% | — | — | — | |
| EPS (Diluted) | $0.00 | -85.6% | — | — | — | |
| Free Cash Flow | -$81.6M | +189.7% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 18.1% | 53.3% | 40.1% | 40.1% |
| Operating Margin | -26.5% | 64.7% | 47.9% | 47.9% |
| Net Margin | 26.0% | 203.7% | 151.5% | 151.5% |
| FCF Margin | -435.9% | 101.4% | -22.8% | -22.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $-0.02 | — | ||
| Q2'26 | — | $0.02 | — | ||
| Q1'26 | — | $0.04 | — | ||
| Q4'25 | — | $0.01 | — | ||
| Q4'25 | — | $0.02 | — | ||
| Q2'25 | — | $-0.01 | — | ||
| Q1'25 | — | $0.16 | — | ||
| Q4'24 | — | $-0.01 | — |
Total return is +232.0% (1Y), outperforming the benchmark by +207.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +42.6% | +33.3% | — |
| 1Y | +232.0% | +207.0% | +114.7% |
| 3YCAGR | +33.0% | +13.2% | +81.3% |
| 5YCAGR | +14.8% | +2.2% | +68.8% |
| 10YCAGR | +7.1% | -6.6% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Toro Corp. (TORO) valuation, health, and returns.
Based on peer relative multiples, Toro Corp. appears Expensive versus peers compared to industry peers.
Toro Corp. has multiple valuation anchors: Peer Relative Fair Value: $3.59. A convergence of these signals offers higher conviction.
Toro Corp. displays weak financial health with a composite quality score of 37/100, supported by a Altman Z-Score of 13.0 (safe zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of -1.9%.
Toro Corp. pays a 1.6% dividend yield, covered by a 0% payout ratio with 0 years of growth, supplemented by a 3.8% buyback yield.
Toro Corp.'s current growth trajectory is Decelerating. The company achieved -71.5% 1Y revenue growth and -85.6% 1Y EPS growth, compared to its 3Y revenue CAGR of -8.5%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Toro Corp. include: -42.7% 1-year max drawdown, high beta (1.90x market volatility). Volatility risk is characterized by a beta of 1.90x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.