TOST Stock Analysis: Toast | NYSE
Software - Infrastructure | NYSE, USA | Market Cap: 20.444m USD | 12M Return: -4.7% | US8887871080 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 277M
Qual. Beats: 3
Rev. Trend: 99.9%
Qual. Beats: 0
Warnings
No concerns identified
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: 550.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA -1.09 > 1.0 |
| NWC/Revenue: 24.57% < 20% (prev 25.52%; Δ -0.95% < -1%) |
| CFO/TA 0.20 > 3% & CFO 668.0m > Net Income 550.0m |
| Net Debt (-1.83b) to EBITDA (621.0m): -2.94 < 3 |
| Current Ratio: 2.66 > 1.5 & < 3 |
| Outstanding Shares: last quarter (592.0m) vs 12m ago -2.79% < -2% |
| Gross Margin: 26.97% > 18% (prev 25.66%; Δ 1.31% > 0.5%) |
| Asset Turnover: 225.4% > 50% (prev 197.2%; Δ 28.19% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.52 (Total Current Assets 2.82b - Total Current Liabilities 1.06b) / Total Assets 3.38b |
| B: -0.24 (Retained Earnings -813.0m / Total Assets 3.38b) |
| C: 0.18 (EBIT TTM 570.0m / Avg Total Assets 3.17b) |
| D: 2.10 (Book Value of Equity 2.29b / Total Liabilities 1.09b) |
| Altman-Z'' = 6.04 = AAA |
| DSRI: 0.95 (Receivables 141.0m/121.0m, Revenue 7.15b/5.86b) |
| GMI: 0.95 (GM 25.66% / 26.97%) |
| AQI: 0.81 (AQ_t 0.12 / AQ_t-1 0.15) |
| SGI: 1.22 (Revenue 7.15b / 5.86b) |
| TATA: -0.03 (NI 550.0m - CFO 668.0m) / TA 3.38b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of November 09, 2026, the stock is trading at USD 34.67 with a total of 9,489,494 shares traded. Over the past week, the price has changed by +9.44%, over one month by +14.61%, over three months by -0.14% and over the past year by -4.70%.
Current recommended Stop Loss: 32.70 (which is 5.7% or 1.4 ATR below the current price).
Toast has received a consensus analysts rating of 4.19. Therefore, it is recommended to buy TOST.
- StrongBuy: 16
- Buy: 5
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 38.8 | 11.9% |
P/E Trailing = 38.8681
P/E Forward = 19.8413
P/S = 2.8585
P/B = 9.4769
P/EG = 0.2473
Revenue TTM = 7.15b USD
EBIT TTM = 570.0m USD
EBITDA TTM = 621.0m 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 = -1.83b USD (calculated: Debt 57.0m - CCE 1.89b)
Enterprise Value = 18.6b USD (20.4b + Debt 57.0m - CCE 1.89b)
Interest Coverage Ratio = unknown (Ebit TTM 570.0m / Interest Expense TTM 0.0)
EV/FCF = 30.82x (Enterprise Value 18.6b / FCF TTM 604.0m)
FCF Yield = 3.24% (FCF TTM 604.0m / Enterprise Value 18.6b)
FCF Margin = 8.45% (FCF TTM 604.0m / Revenue TTM 7.15b)
Net Margin = 7.69% (Net Income TTM 550.0m / Revenue TTM 7.15b)
Gross Margin = 26.97% ((Revenue TTM 7.15b - Cost of Revenue TTM 5.22b) / Revenue TTM)
Gross Margin QoQ = 27.41% (prev 27.04%)
Tobins Q-Ratio = 5.51 (Enterprise Value 18.6b / Total Assets 3.38b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 57.0m)
Taxrate = 3.98% (7.00m / 176.0m)
NOPAT = 547.3m (EBIT 570.0m * (1 - 3.98%))
Current Ratio = 2.66 (Total Current Assets 2.82b / Total Current Liabilities 1.06b)
Debt / Equity = 0.02 (Debt 57.0m / totalStockholderEquity, last quarter 2.29b)
Debt / EBITDA = -2.94 (Net Debt -1.83b / EBITDA 621.0m)
Debt / FCF = -3.03 (Net Debt -1.83b / FCF TTM 604.0m)
Total Stockholder Equity = 2.11b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.33% (Net Income 550.0m / Total Assets 3.38b)
RoE = 26.05% (Net Income TTM 550.0m / Total Stockholder Equity 2.11b)
RoCE = 24.61% (EBIT 570.0m / Capital Employed (Total Assets 3.38b - Current Liab 1.06b))
RoIC = 27.95% (NOPAT 547.3m / Invested Capital 1.96b)
WACC = 9.05% (E(20.4b)/V(20.5b) * Re(9.08%) + D(57.0m)/V(20.5b) * Rd(0.0%) * (1-Tc(0.04)))
Discount Rate = 9.08% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 16.25 | Cagr: 0.38%
[DCF] Terminal Value 73.95% ; FCFF base≈588.0m ; Y1≈625.1m ; Y5≈742.3m
[DCF] Fair Price = 23.35 (EV 10.2b - Net Debt -1.83b = Equity 12.0b / Shares 514.0m; r=9.05% [WACC]; 5y FCF grow 7.09% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 3.74 | # QB: 3
Revenue Correlation: 99.90 | Revenue CAGR: 24.95% | SUE: 0.53 | # QB: 0
EPS current Quarter (2027-03-31): EPS=0.39 | Chg30d=+2.19% | Revisions=+25% | Analysts=10
EPS current Year (2026-12-31): EPS=1.40 | Chg30d=+0.93% | Revisions=+29% | GrowthEPS=+38.3% | GrowthRev=+21.4%
EPS next Year (2027-12-31): EPS=1.77 | Chg30d=+1.93% | Revisions=+0% | GrowthEPS=+26.2% | GrowthRev=+18.6%
[Analyst] Revisions Ratio: +25% (up=6, down=3)