Toro Corp. (NASDAQ: TORO)

Sector: Industrials Industry: Marine Shipping CIK: 0001941131
Market Cap 55.51 Mn
P/B 0.31
P/E 0.41
P/S 2.49
ROIC (Qtr) -2.75
Div Yield % 49.72
Rev 1y % (Qtr) 1.11
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Toro Corp., a prominent entity in the global shipping industry, operates a diverse fleet of vessels that cater to various markets and customer segments. The company's primary business activities encompass the transportation of crude oil, refined petroleum products, and liquefied gases, along with the provision of logistics and shipping services to its clients. Toro Corp.'s revenue generation is primarily attributed to the chartering of its vessels to oil majors, refiners, and traders. The company's fleet is equipped to transport a range of products,...

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Investment thesis

Bull case

  • Robust tangible asset base of 330.32M provides 11.56x coverage of working capital 28.57M, indicating strong operational backing.
  • Tangible assets of 330.32M provide robust 60.13x coverage of other current liabilities 5.49M, indicating strong asset backing.
  • Long-term investments of 187.11M provide solid 6.55x backing of working capital 28.57M, showing strategic capital allocation.
  • Retained earnings of 141.30M provide strong 25.72x coverage of other current liabilities 5.49M, indicating earnings quality.
  • Cash reserves of 25.11M provide robust 4.34x coverage of current liabilities 5.79M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (11.83M) barely covers its investment activities of (143.31M), with a coverage ratio of 0.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 25.11M provide limited coverage of acquisition spending of (110M), which is -0.23x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (11.83M) shows concerning coverage of stock compensation expenses of 3.37M, with a -3.51 ratio indicating potential earnings quality issues.
  • Free cash flow of (40.48M) provides weak coverage of capital expenditures of 28.65M, with a -1.41 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (646302) show weak coverage of depreciation charges of 4.77M, with a -0.14 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Marine Shipping
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KEX Kirby Corp 7.05 Bn 19.89 2.10 1.13 Bn
2 MATX Matson, Inc. 6.79 Bn 74.01 4.43 0.72 Bn
3 ZIM ZIM Integrated Shipping Services Ltd. 3.36 Bn 3.35 0.44 5.66 Bn
4 HAFN Hafnia Ltd 3.35 Bn 10.82 1.51 0.89 Bn
5 BWLP BW LPG Ltd 2.38 Bn 10.97 0.67 1.09 Bn
6 SBLK Star Bulk Carriers Corp. 2.37 Bn 245.30 3.42 1.23 Bn
7 CMRE Costamare Inc. 2.05 Bn 6.81 1.69 1.58 Bn
8 DAC Danaos Corp 1.99 Bn 4.27 1.93 0.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.13 0.60
EV to Cash from Ops. EV/CFO -0.75 6.07
EV to Debt EV to Debt 0.00 60.45
EV to EBIT EV/EBIT -0.30 4.74
EV to EBITDA EV/EBITDA -3.64 5.76
EV to Free Cash Flow [EV/FCF] EV/FCF -38.32 5.00
EV to Market Cap EV to Market Cap -0.76 29.59
EV to Revenue EV/Rev -1.89 2.00
Price to Book Value [P/B] P/B 0.31 1.07
Price to Earnings [P/E] P/E 0.41 13.80
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.47
Dividend Payout Ratio % Div Payout % (Qtr) 2,408.60 68.67
Dividend per Basic Share Div per Share (Qtr) 0.73 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -32.08 105.16
Interest Coverage Int. cover (Qtr) 0.11 -7.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -268.48 -33.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -86.93 25.96
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 9.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -101.43 -27.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -107.61 -36.36
EBIT Growth (1y) % EBIT 1y % (Qtr) -101.43 -26.39
EBT Growth (1y) % EBT 1y % (Qtr) -89.94 -36.07
EPS Growth (1y) % EPS 1y % (Qtr) -98.80 -30.68
FCF Growth (1y) % FCF 1y % (Qtr) -200.15 14.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -26.21 -7.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.06 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 4.34 1.33
Current Ratio Curr Ratio (Qtr) 5.94 2.15
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.73
Interest Cover Ratio Int Coverage (Qtr) 0.11 -7.10
Times Interest Earned Times Interest Earned (Qtr) 0.11 -7.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.40 27.36
EBIT Margin % EBIT Margin % (Qtr) -3.20 17.95
EBT Margin % EBT Margin % (Qtr) 26.12 10.77
Gross Margin % Gross Margin % (Qtr) 38.60 37.00
Net Profit Margin % Net Margin % (Qtr) 3.50 9.28