TOST Stock Overview
Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$43.25|
|52 Week High||US$69.93|
|52 Week Low||US$40.02|
|1 Month Change||-18.83%|
|3 Month Change||n/a|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-30.81%|
Recent News & Updates
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.
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.
|TOST||US IT||US Market|
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.
|TOST Average Weekly Movement||11.4%|
|IT Industry Average Movement||6.9%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.1%|
|10% least volatile stocks in US Market||2.2%|
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
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
|TOST fundamental statistics|
Is TOST overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TOST income statement (TTM)|
|Cost of Revenue||US$1.14b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-1.09|
|Net Profit Margin||-38.32%|
How did TOST perform over the long term?See historical performance and comparison
Is Toast undervalued compared to its fair value and its price relative to the market?
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).
How is Toast forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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.
How has Toast performed over the past 5 years?
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.
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 ($361.0M).
Debt to Equity History and Analysis
Debt Level: TOST is debt free.
Reducing Debt: TOST had no debt 5 years ago.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: TOST has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: TOST has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 104.8% each year
What is Toast current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TOST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TOST's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TOST's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TOST's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TOST's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Comparato (54 yo)
Mr. Christopher P. Comparato, also known as Chris, serves as Chief Executive Officer of Toast, Inc. since February 2015 and its Director since December 2015. Mr. Comparato served as Senior Vice President o...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($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.
Experienced Management: TOST's management team is considered experienced (3.8 years average tenure).
Experienced Board: TOST's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.
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
Dilution of Shares: TOST only recently listed within the past 12 months.
Toast, Inc.'s employee growth, exchange listings and data sources
- 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
- Toast, Inc.
- 401 Park Drive
- Suite 801
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/25 23:24|
|End of Day Share Price||2021/11/24 00:00|
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.