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TOST

ToastNYSE:TOST Stock Report

Market Cap

US$21.8b

7D

0.3%

1Y

n/a

Updated

25 Nov, 2021

Data

Company Financials +
TOST fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

TOST Stock Overview

Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland.

Toast Competitors

PayPal Holdings

NasdaqGS:PYPL

US$221.7b

Square

NYSE:SQ

US$99.5b

Fiserv

NasdaqGS:FISV

US$65.6b

Shift4 Payments

NYSE:FOUR

US$4.7b

Price History & Performance

Summary of all time highs, changes and price drops for Toast
Historical stock prices
Current Share PriceUS$43.25
52 Week HighUS$69.93
52 Week LowUS$40.02
Beta0
1 Month Change-18.83%
3 Month Changen/a
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-30.81%

Recent News & Updates

Nov 16

Toast Stock: Paying 11x Forward Sales Is A Fair Multiple Already

Toast is expected to grow its top line by approximately 100% y/y in Q4. However, more than 80% of its underlying business comes from point of sale products which carry approximately 20% gross profit margins. Paying 11x forward sales for this business is probably a fair multiple already.

Sep 23

Toast Will Be A Stock Market Darling

Toast is one of the first vertical SaaS businesses to list on public markets. Its listing will be a moment to try and understand how vertical SaaS businesses should be valued. The company has weathered the storms of the pandemic and evolved into a more dynamic and forward-looking company. Since its strategic tilt last year, its growth numbers have taken off. The ownership structure means that investors should settle for a backseat in the company’s governance.

Shareholder Returns

TOSTUS ITUS Market
7D0.3%-3.4%-0.7%
1Yn/a5.6%24.7%

Return vs Industry: Insufficient data to determine how TOST performed against the US IT industry.

Return vs Market: Insufficient data to determine how TOST performed against the US Market.

Price Volatility

Is TOST's price volatile compared to industry and market?
TOST volatility
TOST Average Weekly Movement11.4%
IT Industry Average Movement6.9%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.2%

Stable Share Price: TOST is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: Insufficient data to determine TOST's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
20111,900Chris Comparatohttps://pos.toasttab.com

Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland. It offers Toast Point of Sale (POS), a hardware product; Toast Order & Pay, which allows guests to order and pay from their mobile devices; Toast Flex that is used for on-counter order and pay, as well as used as a server station, guest kiosk, kitchen display system, or order fulfillment station; Toast Go, a handheld POS device that enhances the table turn times through tableside ordering and payment acceptance; and Toast Tap, a card reader that supports NFC, EMV, and MSR payments. The company also provides kitchen display system software that connects the front of the house with the kitchen staff; multi-location management software, which allows customers to manage and standardize their operations and configure menus; xtraCHEF by Toast, a restaurant-specific invoice management software; and Toast Flex for Kitchen, a larger format mountable piece of hardware that can be used as a kitchen screen.

Toast Fundamentals Summary

How do Toast's earnings and revenue compare to its market cap?
TOST fundamental statistics
Market CapUS$21.83b
Earnings (TTM)-US$549.01m
Revenue (TTM)US$1.43b

15.2x

P/S Ratio

-39.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TOST income statement (TTM)
RevenueUS$1.43b
Cost of RevenueUS$1.14b
Gross ProfitUS$289.19m
ExpensesUS$838.20m
Earnings-US$549.01m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.09
Gross Margin20.19%
Net Profit Margin-38.32%
Debt/Equity Ratio0.0%

How did TOST perform over the long term?

See historical performance and comparison

Valuation

Is Toast undervalued compared to its fair value and its price relative to the market?

21.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TOST's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TOST's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TOST is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: TOST is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TOST's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TOST is overvalued based on its PB Ratio (21.6x) compared to the US IT industry average (4.8x).


Future Growth

How is Toast forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOST is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TOST is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TOST is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TOST's revenue (29.4% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: TOST's revenue (29.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOST is forecast to be unprofitable in 3 years.


Past Performance

How has Toast performed over the past 5 years?

-129.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: TOST is currently unprofitable.

Growing Profit Margin: TOST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if TOST's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare TOST's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TOST is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (35.8%).


Return on Equity

High ROE: TOST has a negative Return on Equity (-54.31%), as it is currently unprofitable.


Financial Health

How is Toast's financial position?


Financial Position Analysis

Short Term Liabilities: TOST's short term assets ($1.5B) exceed its short term liabilities ($286.8M).

Long Term Liabilities: TOST's short term assets ($1.5B) exceed its long term liabilities ($361.0M).


Debt to Equity History and Analysis

Debt Level: TOST is debt free.

Reducing Debt: TOST had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TOST has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: TOST has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 104.8% each year


Dividend

What is Toast current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TOST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TOST's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TOST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TOST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TOST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Chris Comparato (54 yo)

6.75yrs

Tenure

US$374,668

Compensation

Mr. Christopher P. Comparato, also known as Chris, serves as Chief Executive Officer of Toast, Inc. since February 2015 and its Director since December 2015. Mr. Comparato served as Senior Vice President o...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD374.67K) is below average for companies of similar size in the US market ($USD11.03M).

Compensation vs Earnings: Insufficient data to compare Chris's compensation with company performance.


Leadership Team

Experienced Management: TOST's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: TOST's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TOST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: TOST only recently listed within the past 12 months.


Top Shareholders

Company Information

Toast, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Toast, Inc.
  • Ticker: TOST
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$21.830b
  • Shares outstanding: 504.75m
  • Website: https://pos.toasttab.com

Number of Employees


Location

  • Toast, Inc.
  • 401 Park Drive
  • Suite 801
  • Boston
  • Massachusetts
  • 2215
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/25 23:24
End of Day Share Price2021/11/24 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.