TOST Stock Analysis: Toast | NYSE
Software - Infrastructure | NYSE, USA | Market Cap: 17.219m USD | 12M Return: -15.1% | US8887871080 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 253M
Qual. Beats: 2
Rev. Trend: 99.9%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Toast, Inc. is a cloud-based software platform built specifically for the restaurant industry, operating in the United States, Ireland, India, and other international markets. The company provides an integrated suite of products including point-of-sale systems (Toast POS), AI-powered tools (Toast IQ), online ordering and delivery, payroll and team management, inventory and supply chain solutions, and back-office tools under the xtraCHEF brand. It also offers financial technology services such as integrated payment processing and restaurant-grade hardware, combining software, payments, and hardware into a single offering for restaurant operators.
The company was incorporated in 2011 (originally as Opti Systems, Inc.) and is headquartered in Boston, Massachusetts. Notably, despite being primarily known as a restaurant technology provider, Toast is classified under the Financials sector (Transaction & Payment Processing Services) in the GICS framework, reflecting the significant role of its integrated payment processing business in its overall revenue model. This vertical SaaS-plus-payments approach is a common structure among modern restaurant technology providers, where software subscriptions are paired with payment processing fees to drive customer retention and lifetime value.
- Toast subscription ARR accelerates amid restaurant tech demand
- Payment processing volume rebound lifts gross profit margins
- Competition from Block Square intensifies in restaurant POS market
| Net Income: 486.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA -0.25 > 1.0 |
| NWC/Revenue: 22.72% < 20% (prev 24.23%; Δ -1.51% < -1%) |
| CFO/TA 0.20 > 3% & CFO 635.0m > Net Income 486.0m |
| Net Debt (-1.66b) to EBITDA (539.0m): -3.07 < 3 |
| Current Ratio: 2.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (590.0m) vs 12m ago -2.48% < -2% |
| Gross Margin: 26.72% > 18% (prev 25.19%; Δ 1.53% > 0.5%) |
| Asset Turnover: 228.8% > 50% (prev 199.9%; Δ 28.93% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.49 (Total Current Assets 2.65b - Total Current Liabilities 1.10b) / Total Assets 3.18b |
| B: -0.31 (Retained Earnings -982.0m / Total Assets 3.18b) |
| C: 0.16 (EBIT TTM 488.0m / Avg Total Assets 2.97b) |
| D: 1.80 (Book Value of Equity 2.04b / Total Liabilities 1.14b) |
| Altman-Z'' = 5.17 = AAA |
| DSRI: 0.95 (Receivables 142.0m/121.0m, Revenue 6.80b/5.53b) |
| GMI: 0.94 (GM 25.19% / 26.72%) |
| AQI: 0.80 (AQ_t 0.12 / AQ_t-1 0.15) |
| SGI: 1.23 (Revenue 6.80b / 5.53b) |
| TATA: -0.05 (NI 486.0m - CFO 635.0m) / TA 3.18b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of October 12, 2026, the stock is trading at USD 31.31 with a total of 5,831,675 shares traded. Over the past week, the price has changed by +5.10%, over one month by -3.51%, over three months by +8.53% and over the past year by -15.06%.
Current recommended Stop Loss: 29.60 (which is 5.5% or 1.6 ATR below the current price).
Toast has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy TOST.
- StrongBuy: 15
- Buy: 5
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 38.9 | 24.3% |
P/E Trailing = 37.7089
P/E Forward = 17.6367
P/S = 2.5307
P/B = 8.4255
P/EG = 0.2473
Revenue TTM = 6.80b USD
EBIT TTM = 488.0m USD
EBITDA TTM = 539.0m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 57.0m USD (from shortLongTermDebtTotal, last fiscal year) + Leases 17.0m
Net Debt = -1.66b USD (calculated: Debt 57.0m - CCE 1.71b)
Enterprise Value = 15.6b USD (17.2b + Debt 57.0m - CCE 1.71b)
Interest Coverage Ratio = unknown (Ebit TTM 488.0m / Interest Expense TTM 0.0)
EV/FCF = 27.02x (Enterprise Value 15.6b / FCF TTM 576.0m)
FCF Yield = 3.70% (FCF TTM 576.0m / Enterprise Value 15.6b)
FCF Margin = 8.47% (FCF TTM 576.0m / Revenue TTM 6.80b)
Net Margin = 7.14% (Net Income TTM 486.0m / Revenue TTM 6.80b)
Gross Margin = 26.72% ((Revenue TTM 6.80b - Cost of Revenue TTM 4.99b) / Revenue TTM)
Gross Margin QoQ = 27.04% (prev 27.42%)
Tobins Q-Ratio = 4.89 (Enterprise Value 15.6b / Total Assets 3.18b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 57.0m)
Taxrate = 2.41% (12.0m / 498.0m)
NOPAT = 476.2m (EBIT 488.0m * (1 - 2.41%))
Current Ratio = 2.40 (Total Current Assets 2.65b / Total Current Liabilities 1.10b)
Debt / Equity = 0.03 (Debt 57.0m / totalStockholderEquity, last quarter 2.04b)
Debt / EBITDA = -3.07 (Net Debt -1.66b / EBITDA 539.0m)
Debt / FCF = -2.88 (Net Debt -1.66b / FCF TTM 576.0m)
Total Stockholder Equity = 2.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.34% (Net Income 486.0m / Total Assets 3.18b)
RoE = 23.79% (Net Income TTM 486.0m / Total Stockholder Equity 2.04b)
RoCE = 23.50% (EBIT 488.0m / Capital Employed (Total Assets 3.18b - Current Liab 1.10b))
RoIC = 27.42% (NOPAT 476.2m / Invested Capital 1.74b)
WACC = 9.99% (E(17.2b)/V(17.3b) * Re(10.02%) + D(57.0m)/V(17.3b) * Rd(0.0%) * (1-Tc(0.02)))
Discount Rate = 10.02% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 61.05 | Cagr: 3.42%
[DCF] Terminal Value 72.56% ; FCFF base≈548.8m ; Y1≈620.5m ; Y5≈881.5m
[DCF] Fair Price = 23.33 (EV 10.3b - Net Debt -1.66b = Equity 12.0b / Shares 514.0m; r=9.99% [WACC]; 5y FCF grow 13.39% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.66 | # QB: 2
Revenue Correlation: 99.87 | Revenue CAGR: 25.84% | SUE: 1.88 | # QB: 1
EPS current Quarter (2026-09-30): EPS=0.37 | Chg30d=+0.11% | Revisions=+62% | Analysts=15
EPS current Year (2026-12-31): EPS=1.39 | Chg30d=+0.09% | Revisions=+40% | GrowthEPS=+37.0% | GrowthRev=+21.4%
EPS next Year (2027-12-31): EPS=1.73 | Chg30d=+0.13% | Revisions=+17% | GrowthEPS=+25.0% | GrowthRev=+18.4%
[Analyst] Revisions Ratio: +61% (up=13, down=2)