A Business at a Glance
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Toast, Inc.
TOST
$17.7B
Mkt Cap
$29.04
+2.25%
Toast, Inc. (TOST) has a current P/E ratio of 51.9, compared to its historical median P/E of 65.1. The stock is currently considered Cheap based on its historical valuation range.
Toast, Inc. (TOST) has a 5-year average return on invested capital (ROIC) of -25.1%. This is below average and may indicate limited pricing power.
Toast, Inc. (TOST) has a market capitalization of $17.5B. It is classified as a large-cap stock.
Toast, Inc. (TOST) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 2.36%.
Based on historical P/E analysis, Toast, Inc. (TOST) appears cheap. The current P/E of 51.9 is 20% below its historical median of 65.1. The estimated fair value CAGR (P/E method) is 75.3%.
Toast, Inc. (TOST) operates in the Services-Computer Processing & Data Preparation industry, within the Technology sector.
Toast, Inc. (TOST) reported annual revenue of $6.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Our Mission Our mission is to empower the restaurant community to delight their guests, do what they love, and thrive. Toast, Inc., which we refer to as Toast, we, or the Company, is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. We provide a comprehensive platform of software-as-a-service, or SaaS, products and financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Our Market Restaurants and food and beverage retailers are highly diverse and complex and generally operate with low margins, high employee turnover, highly perishable products, and complex regulations.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.4B | 6.2B | 5.0B | 3.9B | 2.7B | 1.7B |
| Net Income | 412M | 342M | 19M | -246M | -275M | -487M |
| EPS | $0.68 | $0.56 | $0.03 | $-0.47 | $-0.72 | $-1.68 |
| Free Cash Flow | 654M | 608M | 306M | 93M | -172M | -10M |
| ROIC | 39.6% | 40.3% | 3.7% | -21.5% | -25.1% | -123.0% |
| Gross Margin | 26.3% | 25.9% | 24.0% | 21.6% | 18.7% | 18.4% |
| Debt/Equity | 0.00 | 0.01 | 0.02 | 0.04 | 0.09 | 0.09 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 359M | 292M | 16M | -287M | -384M | -228M |
| Operating Margin | 5.6% | 4.7% | 0.3% | -7.4% | -14.1% | -13.4% |
| ROE | 20.7% | 18.6% | 1.4% | -21.5% | -25.1% | -157.1% |
| Shares Outstanding | 602M | 611M | 633M | 523M | 382M | 290M |
| Metric | ||||||||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 665M | 823M | 1.7B | 2.7B | 3.9B | 5.0B | 6.2B | 6.4B |
| Gross Margin | 9.3% | 17.0% | 18.4% | 18.7% | 21.6% | 24.0% | 25.9% | 26.3% |
| R&D | 64M | 109M | 163M | 282M | 358M | 351M | 374M | 387M |
| SG&A | 83M | 113M | 189M | 294M | 362M | 307M | 344M | 349M |
| EBIT | -213M | -220M | -228M | -384M | -287M | 16M | 292M | 359M |
| Op. Margin | -32.0% | -26.7% | -13.4% | -14.1% | -7.4% | 0.3% | 4.7% | 5.6% |
| Net Income | -209M | -249M | -487M | -275M | -246M | 19M | 342M | 412M |
| Net Margin | -31.4% | -30.3% | -28.6% | -10.1% | -6.4% | 0.4% | 5.6% | 6.4% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 46M | 12M | 5.0M |
| Returns on Capital | ||||||||
| ROIC | N/A | -28.4% | -123.0% | -25.1% | -21.5% | 3.7% | 40.3% | 39.6% |
| ROE | 85.7% | 62.2% | -157.1% | -25.1% | -21.5% | 1.4% | 18.6% | 20.7% |
| ROA | N/A | -62.3% | -38.8% | -15.7% | -13.2% | 0.9% | 12.3% | 13.3% |
| Cash Flow | ||||||||
| Op. Cash Flow | -126M | -125M | 2.0M | -156M | 135M | 360M | 661M | 714M |
| Free Cash Flow | -135M | -153M | -10M | -172M | 93M | 306M | 608M | 654M |
| Owner Earnings | -167M | -238M | -159M | -408M | -174M | 61M | 355M | 423M |
| CapEx | 9.0M | 28M | 12M | 16M | 42M | 54M | 53M | 60M |
| Maint. CapEx | 7.0M | 27M | 21M | 24M | 32M | 46M | 64M | 55M |
| Growth CapEx | 2.0M | 1.0M | 0 | 0 | 10M | 8.0M | 0 | 5.0M |
| D&A | 7.0M | 27M | 21M | 24M | 32M | 46M | 64M | 55M |
| CapEx/OCF | N/A | N/A | 600.0% | N/A | 31.1% | 15.0% | 8.0% | 8.4% |
| Capital Allocation | ||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 56M | 107M | 413M |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | 0.2% | 0.5% | 2.4% |
| Stock-Based Comp | 34M | 86M | 140M | 228M | 277M | 253M | 242M | 236M |
| Debt Repayment | 0 | 0 | 245M | 0 | 0 | 0 | 3.0M | 3.0M |
| Balance Sheet | ||||||||
| Net Debt | -147M | -410M | -1.2B | -927M | -1.1B | -869M | -1.3B | -1.1B |
| Cash & Equiv. | 150M | 582M | 809M | 547M | 605M | 903M | 1.4B | 1.1B |
| Long-Term Debt | 0 | 172M | 0 | 0 | N/A | N/A | N/A | N/A |
| Debt/Equity | -0.01 | -0.37 | 0.09 | 0.09 | 0.04 | 0.02 | 0.01 | 0.00 |
| Interest Coverage | N/A | -16.9 | -19.0 | -34.9 | -7.8 | 0.4 | 5.7 | 6.9 |
| Equity | -330M | -471M | 1.1B | 1.1B | 1.2B | 1.5B | 2.1B | 2.0B |
| Total Assets | N/A | 776M | 1.7B | 1.8B | 2.0B | 2.4B | 3.1B | 3.1B |
| Total Liabilities | 22M | 398M | 644M | 663M | 764M | 863M | 1.0B | 1.1B |
| Intangibles | N/A | 7.0M | 16M | 29M | 26M | 20M | 14M | 13M |
| Retained Earnings | N/A | -616M | -1.1B | -1.4B | -1.6B | -1.6B | -1.3B | -1.1B |
| Working Capital | N/A | 537M | 1.1B | 911M | 907M | 1.2B | 1.7B | 1.5B |
| Current Assets | N/A | 673M | 1.5B | 1.4B | 1.6B | 2.0B | 2.7B | 2.6B |
| Current Liabilities | N/A | 136M | 352M | 496M | 663M | 811M | 969M | 1.1B |
| Per Share Data | ||||||||
| EPS | -1.08 | -1.25 | -1.68 | -0.72 | -0.47 | 0.03 | 0.56 | 0.68 |
| Owner EPS | -0.86 | -1.19 | -0.55 | -1.07 | -0.33 | 0.10 | 0.58 | 0.70 |
| Book Value | -1.71 | -2.36 | 3.76 | 2.87 | 2.28 | 2.44 | 3.48 | 3.31 |
| Cash Flow/Share | -0.65 | -0.63 | 0.01 | -0.41 | 0.26 | 0.57 | 1.08 | 0.78 |
| Dividends/Share | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 193.5M | 199.2M | 289.9M | 381.9M | 523.4M | 633.3M | 610.7M | 602.0M |
| Valuation | ||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | 65.1 | 42.6 |
| P/FCF | N/A | N/A | N/A | N/A | 106.5 | 77.6 | 36.6 | 26.7 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 45.6 |
| Price/Book | N/A | N/A | 9.8 | 5.8 | 8.3 | 15.4 | 10.5 | 8.8 |
| Price/Sales | N/A | N/A | 8.1 | 2.7 | 2.6 | 3.4 | 3.9 | 2.7 |
| FCF Yield | N/A | N/A | -0.1% | -2.7% | 0.9% | 1.3% | 2.7% | 3.7% |
| Market Cap | 0 | N/A | 10.7B | 6.4B | 9.9B | 23.8B | 22.3B | 17.5B |
| Avg. Price | 0.00 | N/A | 47.58 | 19.09 | 19.43 | 26.30 | 39.09 | 29.04 |
| Year-End Price | 0.00 | N/A | 36.78 | 16.75 | 18.92 | 37.50 | 36.44 | 29.04 |
Toast, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Toast, Inc. trades at 51.9x trailing earnings, compared to its 15-year median P/E of 65.1x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 25.0x vs a median of 57.1x. The company's 5-year average gross margin is 21.7%. Total shareholder yield (buybacks) is 2.4%. At current prices, the estimated annualized return to fair value is +68.9%.
Toast, Inc. (TOST) has a net profit margin of 5.6%. This is a modest margin.
Toast, Inc. (TOST) generated $608 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Toast, Inc. (TOST) has a debt-to-equity ratio of 0.01. This indicates a conservatively financed balance sheet.
Toast, Inc. (TOST) reported earnings per share (EPS) of $0.56 in its most recent fiscal year.
Toast, Inc. (TOST) has a return on equity (ROE) of 18.6%. This indicates the company generates strong returns for shareholders.
Toast, Inc. (TOST) has a 5-year average gross margin of 21.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 7 years of financial data for Toast, Inc. (TOST), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Toast, Inc. (TOST) has a book value per share of $3.48, based on its most recent annual SEC filing.