Toro Corp. (TORO) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TORO

Here is a 90-word analysis of the positive drivers behind Toro Corp.'s recent performance: Toro's focus on higher-margin products and innovation in autonomous machinery is expected to drive profitability. The company's cost controls and restructuring efforts aim to increase profitability, targeting $100M in annual savings and a 14% adjusted operating margin by 2026. Record full-year net sales, driven by strength in residential, underground construction, and golf segments, demonstrate resilience. Additionally, the company's recent dividend increase signals confidence in its financial position.

1.c. Company Highlights

Last Price	5.8
Change Percentage	40.44%
Open	5.08
Previous Close	4.13
Market Cap ( Millions)	104
Volume	15358382
Year High	5.95
Year Low	1.7
M A 50	3.92
M A 200	2.81

FCF Yield	-7.06%
Dividend Yield	0.00%
ROE	1.54%
Debt / Equity	0.00%
Net Debt / EBIDTA	-9408.89%
Price To Book	0.32
Price Earnings Ratio	20.62
Price To FCF	-14.16
Price To sales	5.16
EV / EBITDA	-8.84

2. Transcript Summary

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3. NewsRoom

Toro Corp. Reports Net Income of $1.3 Million for the Three Months Ended September 30, 2025 and $4.3 Million for the Nine Months Ended September 30, 2025

Dec -05

Source: globenewswire.com

Tornado Infrastructure Equipment Securityholders Approve Arrangement With the Toro Company

Dec -02

Source: accessnewswire.com

Toro (NASDAQ:TORO) Stock Price Up 2.4% – Here’s Why

Nov -26

Source: defenseworld.net

The Toro Company to Announce Fiscal 2025 Full-Year Results

Nov -25

Source: businesswire.com

Synchrony and The Toro Company Launch New Credit Card for Financing Lawn Equipment

Nov -20

Source: prnewswire.com

Tornado Infrastructure Equipment Announces Filing of Circular and Receipt of Interim Order in Relation to Proposed Plan of Arrangement With the Toro Company

Nov -10

Source: accessnewswire.com

All You Need to Know About Toro (TTC) Rating Upgrade to Buy

Nov -04

Source: zacks.com

The Toro Company: Stuck In The Weeds (Rating Downgrade)

Oct -23

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Aframax / LR2 Tanker

Expected Growth: 4.5%

Increasing global oil demand, growing energy consumption, and rising crude oil production are driving the demand for Aframax/LR2 tankers. Additionally, the need for efficient and cost-effective transportation of petroleum products is boosting the growth of this segment.

Handysize Tanker

Expected Growth: 4.5%

Growing demand for short- to medium-haul voyages, increasing oil trade, and limited fleet supply drive the Handysize Tanker market growth, with Toro Corp.'s mid-sized tankers well-positioned to capitalize on this trend.

Liquefied Petroleum Gas Carrier

Expected Growth: 4.5%

Growing demand for liquefied petroleum gases, increasing adoption in emerging markets, and rising investments in infrastructure development are expected to drive the growth of the liquefied petroleum gas carrier market.

7. Detailed Products

Lawn Mowers

Toro's lawn mowers are designed for residential and commercial use, offering a range of gas-powered and electric models with advanced features like zero-turn technology and automatic transmissions.

Irrigation Systems

Toro's irrigation systems provide efficient water management solutions for golf courses, sports fields, and agricultural applications, featuring advanced sensors and control systems.

Snow Removal Equipment

Toro's snow removal equipment includes snow blowers, plows, and salt spreaders designed for residential and commercial use, offering reliable performance in harsh winter conditions.

Golf Course and Sports Field Equipment

Toro's golf course and sports field equipment includes mowers, aerators, and other specialized tools designed for maintaining high-quality turf and sports surfaces.

Batteries and Chargers

Toro's batteries and chargers provide reliable power solutions for outdoor equipment, featuring advanced technology and long-lasting performance.

Lighting and Controls

Toro's lighting and control systems offer energy-efficient solutions for outdoor lighting, featuring advanced sensors and control systems.

8. Toro Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Toro Corp. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Toro Corp. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Toro Corp. relies on a few key suppliers for raw materials, giving them moderate bargaining power.

Threat Of New Entrants

The lawn and garden industry is relatively easy to enter, posing a high threat of new entrants to Toro Corp.

Intensity Of Rivalry

The lawn and garden industry is highly competitive, with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	41.39%
Debt Cost	3.95%
Equity Weight	58.61%
Equity Cost	3.95%
WACC	3.95%
Leverage	70.62%

11. Quality Control: Toro Corp. passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

StealthGas

A-Score: 5.2/10

Value: 9.0

Growth: 7.2

Quality: 7.6

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

Irish Continental

A-Score: 4.7/10

Value: 4.2

Growth: 7.3

Quality: 6.1

Yield: 4.4

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

Diana Shipping

A-Score: 4.6/10

Value: 8.7

Growth: 3.3

Quality: 4.6

Yield: 7.5

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

Capital Product Partners

A-Score: 4.4/10

Value: 5.6

Growth: 2.7

Quality: 4.8

Yield: 6.2

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Performance Shipping

A-Score: 4.2/10

Value: 10.0

Growth: 3.8

Quality: 7.9

Yield: 0.0

Momentum: 3.0

Volatility: 0.7

1-Year Total Return ->

Toro

A-Score: 4.0/10

Value: 5.8

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 7.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-9.14%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

3.95%

Toro Corp. - MHY8900D1085

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TORO

1.c. Company Highlights

Higher Growth

More Volatile

Cheaper

Weak Momentum

Lower Yield

Fairly Valued

Stable Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Aframax / LR2 Tanker

Expected Growth: 4.5%

Handysize Tanker

Expected Growth: 4.5%

Liquefied Petroleum Gas Carrier

Expected Growth: 4.5%

7. Detailed Products

Lawn Mowers

Irrigation Systems

Snow Removal Equipment

Golf Course and Sports Field Equipment

Batteries and Chargers

Lighting and Controls

8. Toro Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Toro Corp. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.8$

Current Price

5.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA