(TOST) Toast - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NYSE (USA) | Market Cap: 15.097m USD | Total Return: -42.5% in 12m
Avg Turnover: 317M
Qual. Beats: 1
Rev. Trend: 99.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Toast, Inc. (TOST) provides a comprehensive cloud-based technology stack designed specifically for the restaurant industry. Its software-as-a-service (SaaS) platform integrates front-of-house point of sale (POS) systems with back-office functions, including payroll, inventory management, and supply chain logistics. The company operates within the Transaction & Payment Processing Services sector, generating revenue through a combination of recurring subscription fees and transaction-based payment processing margins.
The platform utilizes a land and expand business model, where initial hardware and POS installations serve as the entry point for high-margin software modules like Toast IQ and xtraCHEF. By consolidating disparate functions like kitchen display systems and online ordering into a single interface, Toast aims to reduce operational friction for independent and multi-location restaurant operators. Vertical SaaS providers in the hospitality space often benefit from high switching costs once a restaurant integrates its financial and labor management systems into the core platform.
Investors can further examine the companys long-term margin expansion goals by reviewing the data on ValueRay. Founded in 2011 and headquartered in Boston, Toast has expanded its footprint beyond the United States to include operations in Ireland and India.
- Gross payment volume growth drives recurring fintech and subscription service revenue
- High interest rates and inflation pressure small restaurant operator profitability margins
- Market share expansion into international regions and enterprise tiers fuels growth
- Operating leverage improvement hinges on reducing sales and marketing expense ratios
- Regulatory changes in payment processing fees impact net take rate profitability
| Net Income: 412.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.21 > 0.02 and ΔFCF/TA 5.23 > 1.0 |
| NWC/Revenue: 23.70% < 20% (prev 23.00%; Δ 0.71% < -1%) |
| CFO/TA 0.23 > 3% & CFO 714.0m > Net Income 412.0m |
| Net Debt (-1.75b) to EBITDA (440.0m): -3.98 < 3 |
| Current Ratio: 2.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (602.0m) vs 12m ago -0.17% < -2% |
| Gross Margin: 26.28% > 18% (prev 24.65%; Δ 1.63% > 0.5%) |
| Asset Turnover: 227.9% > 50% (prev 203.7%; Δ 24.19% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.49 (Total Current Assets 2.59b - Total Current Liabilities 1.06b) / Total Assets 3.09b |
| B: -0.37 (Retained Earnings -1.14b / Total Assets 3.09b) |
| C: 0.14 (EBIT TTM 384.0m / Avg Total Assets 2.83b) |
| D: 1.80 (Book Value of Equity 1.99b / Total Liabilities 1.10b) |
| Altman-Z'' = 4.85 = AA |
| DSRI: 0.95 (Receivables 138.0m/118.0m, Revenue 6.45b/5.22b) |
| GMI: 0.94 (GM 24.65% / 26.28%) |
| AQI: 0.75 (AQ_t 0.12 / AQ_t-1 0.16) |
| SGI: 1.23 (Revenue 6.45b / 5.22b) |
| TATA: -0.10 (NI 412.0m - CFO 714.0m) / TA 3.09b) |
| Beneish M = -3.12 (Cap -4..+1) = AA |
As of June 07, 2026, the stock is trading at USD 24.64 with a total of 9,166,045 shares traded.
Over the past week, the price has changed by -5.34%,
over one month by -13.67%,
over three months by -19.24% and
over the past year by -42.46%.
Toast has received a consensus analysts rating of 3.81. Therefore, it is recommended to buy TOST.
- StrongBuy: 12
- Buy: 3
- Hold: 16
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 34 | 37.8% |
P/E Trailing = 38.8507
P/E Forward = 19.5695
P/S = 2.3421
P/B = 7.5866
P/EG = 0.2348
Revenue TTM = 6.45b USD
EBIT TTM = 384.0m USD
EBITDA TTM = 440.0m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 17.0m USD (from shortLongTermDebtTotal, last quarter) (leases 17.0m already included)
Net Debt = -1.75b USD (calculated: Debt 17.0m - CCE 1.77b)
Enterprise Value = 13.3b USD (15.1b + Debt 17.0m - CCE 1.77b)
Interest Coverage Ratio = unknown (Ebit TTM 384.0m / Interest Expense TTM 0.0)
EV/FCF = 20.40x (Enterprise Value 13.3b / FCF TTM 654.0m)
FCF Yield = 4.90% (FCF TTM 654.0m / Enterprise Value 13.3b)
FCF Margin = 10.15% (FCF TTM 654.0m / Revenue TTM 6.45b)
Net Margin = 6.39% (Net Income TTM 412.0m / Revenue TTM 6.45b)
Gross Margin = 26.28% ((Revenue TTM 6.45b - Cost of Revenue TTM 4.75b) / Revenue TTM)
Gross Margin QoQ = 27.42% (prev 25.90%)
Tobins Q-Ratio = 4.31 (Enterprise Value 13.3b / Total Assets 3.09b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 17.0m)
Taxrate = 1.67% (7.00m / 419.0m)
NOPAT = 377.6m (EBIT 384.0m * (1 - 1.67%))
Current Ratio = 2.44 (Total Current Assets 2.59b / Total Current Liabilities 1.06b)
Debt / Equity = 0.01 (Debt 17.0m / totalStockholderEquity, last quarter 1.99b)
Debt / EBITDA = -3.98 (Net Debt -1.75b / EBITDA 440.0m)
Debt / FCF = -2.68 (Net Debt -1.75b / FCF TTM 654.0m)
Total Stockholder Equity = 1.99b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.56% (Net Income 412.0m / Total Assets 3.09b)
RoE = 20.74% (Net Income TTM 412.0m / Total Stockholder Equity 1.99b)
RoCE = 18.92% (EBIT 384.0m / Capital Employed (Total Assets 3.09b - Current Liab 1.06b))
RoIC = 22.11% (NOPAT 377.6m / Invested Capital 1.71b)
WACC = 10.68% (E(15.1b)/V(15.1b) * Re(10.69%) + D(17.0m)/V(15.1b) * Rd(0.0%) * (1-Tc(0.02)))
Discount Rate = 10.69% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 77.78 | Cagr: 4.86%
[DCF] Terminal Value 70.82% ; FCFF base≈555.6m ; Y1≈636.9m ; Y5≈937.4m
[DCF] Fair Price = 22.76 (EV 9.99b - Net Debt -1.75b = Equity 11.7b / Shares 516.0m; r=10.68% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.44 | # QB: 1
Revenue Correlation: 99.80 | Revenue CAGR: 27.03% | SUE: -0.12 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.31 | Chg30d=-3.28% | Revisions=-27% | Analysts=11
EPS next Quarter (2026-09-30): EPS=0.35 | Chg30d=+0.61% | Revisions=+45% | Analysts=11
EPS current Year (2026-12-31): EPS=1.34 | Chg30d=+3.92% | Revisions=+62% | GrowthEPS=+32.5% | GrowthRev=+20.0%
EPS next Year (2027-12-31): EPS=1.70 | Chg30d=+1.73% | Revisions=+33% | GrowthEPS=+26.6% | GrowthRev=+18.0%
[Analyst] Revisions Ratio: +62%