Toast Inc (TOST) AI Stock Analysis

• Market Cap: $27.60B
• Dividend Yield: N/A
• Average Volume (3M): 7.97M
• Price to Earnings (P/E): 203.5
• Beta (1Y): 1.57
• Revenue Growth: 26.72%
• EPS Growth: N/A
• Country: US
• Employees: 5,700
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Infrastructure
• EPS (TTM): 0.25
• Shares Outstanding: 498,000,000
• 10 Day Avg. Volume: 8,095,392
• 30 Day Avg. Volume: 7,974,150
• PEG Ratio: -10.00
• Price to Book (P/B): 13.19
• Price to Sales (P/S): 4.11
• P/FCF Ratio: 66.59
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 18.03
• Enterprise Value/Ebitda: 111.12
• 1Y Price Target: $46.40
• Price Target Upside: -2.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 73 Outperform
• Price Target: $53.00 ▲(11.09% Upside)

Toast Inc.'s strong financial performance and positive technical indicators are the primary drivers of its stock score. However, the high P/E ratio suggests potential overvaluation, which could impact future returns if growth expectations are not met. The absence of a dividend yield further emphasizes reliance on capital gains.

Positive Factors

Earnings

TOST delivered strong results, coming in well ahead of expectations with significant enterprise client wins.

Market Expansion

TOST continues to gain share within its core US restaurant market, while gaining momentum in emerging verticals and international markets.

Negative Factors

Macroeconomic Risk

The FY25 guidance assumes significant resilience from SMB restaurants, which could be at risk if there is a macroeconomic downturn, affecting Toast, Inc.'s growth.

Valuation Concerns

There is limited room for missteps in the long term, as valuation leaves little margin for error, maintaining a Neutral rating on the stock.

Toast Inc Business Overview & Revenue Model

Company Description

Toast, Inc. operates a cloud-based and digital technology platform for the restaurant industry in the United States and Ireland. The company 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. It 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 that provides back-office tools; and Toast Flex for Kitchen, a larger format mountable piece of hardware that can be used as a kitchen screen. In addition, the company offers Toast Online Ordering & Toast TakeOut app, a software-based platform that provides restaurants to take off-premises orders directly through their branded website; First-Party Delivery services for restaurants to manage a fleet of drivers, and customize delivery hours, zones, fees, and minimum ticket sizes; Toast Delivery Services, which enables restaurants to utilize a partner network of delivery drivers; and Toast Delivery Partners services. Further, it provides loyalty programs and gift cards; payroll and team management products; business owner policy insurance and restaurant-specific add-ons; payment processing solutions; loans advanced to restaurants; purchase financing; reporting and analytics solutions; Toast Partner Connect that allows customers to discover, select, and connect their restaurant to its partners; and bi-directional APIs. The company was incorporated in 2011 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Toast Inc makes money primarily through the sale and subscription of its SaaS products, which include point of sale systems and software solutions tailored for restaurant operations. Revenue is generated from a combination of subscription fees for its software tools, and transaction-based fees through its payment processing services. Additionally, Toast generates revenue from hardware sales, such as terminals and peripherals needed for its POS systems. The company also benefits from partnerships with third-party service providers, which can lead to additional integration fees and enhanced service offerings for its users. These diversified revenue streams enable Toast to maintain a robust financial model centered around the growing demand for technology-driven restaurant management solutions.

Toast Inc Financial Statement Overview

Summary

Toast Inc. shows strong financial performance with significant revenue growth, improved profitability, and solid cash flow management. The company has a low debt-to-equity ratio and a healthy equity base, positioning it well for future expansion. However, the growth in liabilities needs monitoring.

Income Statement

Toast Inc. has demonstrated robust revenue growth, with a significant increase from $823 million in 2020 to $5.2 billion in TTM (Trailing-Twelve-Months). The company has also improved its gross profit margin, reaching approximately 24.6% in TTM. Notably, the net profit margin turned positive at about 3% in TTM, indicating improved profitability. Despite prior losses, the company has achieved positive EBIT and EBITDA margins, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a strong financial position with a substantial stockholders' equity of $1.67 billion and a low debt-to-equity ratio of 0.01 in TTM, indicating low financial leverage. The equity ratio is healthy at approximately 65.2%, highlighting a stable capital structure. However, the total liabilities have grown, necessitating monitoring of leverage trends.

Cash Flow

Toast Inc. has shown impressive cash flow management, with operating cash flow increasing significantly to $459 million in TTM. The free cash flow has also grown, with a notable free cash flow to net income ratio. The company has effectively converted its operating activities into cash, supporting its growth and operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.53B	4.96B	3.87B	2.73B	1.71B	823.13M
Gross Profit	1.39B	1.19B	834.00M	511.00M	314.00M	140.41M
EBITDA	226.00M	108.00M	-255.00M	-360.00M	-207.00M	-208.22M
Net Income	224.00M	19.00M	-246.00M	-275.00M	-487.00M	-248.20M
Balance Sheet
Total Assets	2.77B	2.41B	1.96B	1.76B	1.74B	775.96M
Cash, Cash Equivalents and Short-Term Investments	1.70B	1.42B	1.12B	1.02B	1.27B	581.82M
Total Debt	19.00M	24.00M	44.00M	94.00M	99.00M	171.71M
Total Liabilities	949.00M	863.00M	764.00M	663.00M	644.00M	1.25B
Stockholders Equity	1.82B	1.54B	1.19B	1.10B	1.09B	-470.98M
Cash Flow
Free Cash Flow	508.00M	306.00M	93.00M	-189.00M	-17.00M	-160.71M
Operating Cash Flow	558.00M	360.00M	135.00M	-156.00M	2.00M	-124.63M
Investing Cash Flow	-22.00M	-39.00M	-86.00M	-98.00M	-503.00M	-35.86M
Financing Cash Flow	22.00M	18.00M	63.00M	38.00M	759.00M	594.50M

Toast Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOST, the sentiment is Positive. The current price of 47.71 is above the 20-day moving average (MA) of 46.86, above the 50-day MA of 44.48, and above the 200-day MA of 38.87, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 54.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOST.

Toast Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	77 Outperform	$2.35B	28.30	13.86%	―	13.02%	-2.57%
TOST	73 Outperform	$27.60B	203.45	14.51%	―	26.72%	―
FOUR	71 Outperform	$7.56B	30.46	19.00%	―	27.39%	115.40%
NTNX	66 Neutral	$19.65B	104,714.29	6.85%	―	16.11%	―
DBX	66 Neutral	$7.36B	17.42	-60.11%	―	0.79%	0.59%
MQ	65 Neutral	$2.62B	56.63	5.01%	―	-8.44%	―
Sector *	57 Neutral	HK$14.02B	9.47	-2.83%	4.86%	9.29%	-48.65%

Toast Inc Corporate Events

Toast Inc Holds Annual Stockholders Meeting

On June 13, 2025, Toast Inc held its annual meeting of stockholders via live audio webcast. During the meeting, stockholders voted on three proposals. Paul Bell and Hilarie Koplow-McAdams were elected as Class I directors for a three-year term. Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, the compensation of the company’s named executive officers for the fiscal year ended December 31, 2024, was approved on an advisory, non-binding basis.

The most recent analyst rating on (TOST) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Toast Inc stock, see the TOST Stock Forecast page.