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TOST

NYSE
Favorable · 59/100

Toast Inc

Financials
Financial Services

$29.68

3.0%

Updated Today 12:11 PM ET

Report Card

TOST at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 59/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▼ Down 31.9% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$16.72B

P/E

40.57x

Forward P/E (est.)

28.98x

ROE

20.7%

Revenue Growth

23.4%

EPS Growth

163.7%

Profit Margin

6.4%

FCF Yield

-1.8%

Debt / Equity

0x

ROIC

12.0%

Interest Coverage

24.33x

Current Ratio

2.44x

Dividend Yield

Implied Growth (rev. DCF)

5.2%

Rating Score

59/100

Business Overview
Research

Toast Inc (TOST) is a large-cap company in the Financial Services industry, part of the Financials sector of the S&P 500, with a market value around $16.72B.

In its latest reported year it generated about $6.15B in revenue and $342.00M in net profit.

Our model rates TOST Favorable (59/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TOST's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TOST trades near $29.68, around its 50-day average ($25.87) and 200-day average ($31.08). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 80 it is overbought — the recent rally is stretched and can cool off.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. TOST's is $1.20 (~4.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month TOST found buyers near $23.79 (support) and sellers near $29.77 (resistance); its 52-week range is $22.26–$49.66. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.3× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

37.8%

4/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $665.00M in 2019 to $6.15B in 2025, a 44.9% compound annual growth rate. The most recent year grew a strong 23.4% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research
3/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

25.9%

Operating Margin

4.7%

Net Margin

5.6%

ROE

20.7%

Toast Inc keeps about 6.4% of each sales dollar as net profit, with a 25.9% gross margin and 4.7% operating margin. Return on equity is 20.7% and return on invested capital about 12.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0x

Leverage: debt-to-equity is 0.0x, and operating profit covers interest about 24.3x, with a current ratio of 2.4x. That is a conservative balance sheet — a cushion in downturns.

Cash Flow Analysis
Research
1/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$661.00M

Free Cash Flow

$608.00M

FCF Margin

9.9%

In the latest year Toast Inc produced about $661.00M of operating cash flow and $608.00M of free cash flow after capital spending. That is a free-cash-flow yield of about -1.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

40.57x

P/S

2.72x

P/B

13.4x

EV / EBITDA

43.87x

TOST trades at 40.6x trailing earnings (about 29.0x on estimated forward earnings), 2.7x sales, and 13.4x book value. Reverse-engineering today's price implies the market expects roughly 5.2% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

Current price

$29.68

+51% · Below fair-value estimate

Starting FCF (latest 10-K)

$608.00M

Growth, years 1–5

20.0%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$9.39B
PV of terminal value$15.78B
Estimated equity value$25.18B

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
40.6xExpensive
Forward P/E
29.0xExpensive
P/S ratio
2.7xExpensive
Revenue growth
23.4%Strong
EPS growth
163.7%Strong
Gross margin
25.9%Weak
Net margin
6.4%Weak
ROE
20.7%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Bull Case

The case for TOST:

  • Revenue is growing 23.4% a year, a sign of real demand.
  • Strong return on equity (20.7%) shows capital is put to work well.
  • A conservative balance sheet (debt/equity 0.0x) lowers risk.
  • Our model's overall read is Favorable (59/100).
Bear Case

The case against TOST:

  • A rich 40.6x earnings multiple prices in a lot of growth.
  • Limited free cash flow at today's price.
Key Risks
Research

Valuation risk — at 40.6x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Toast Inc is a large-cap financials business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 40.6x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

TOST — frequently asked questions

Is TOST a good stock to buy?

We don't give buy or sell advice. Our model rates Toast Inc Favorable (59/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is TOST's rating on The Stocks School?

Toast Inc currently scores 59/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does TOST's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Toast Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for TOST calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this TOST analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell TOST. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.