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TOAST INC-CLASS A (TOST) Stock Fundamental Analysis

NYSE:TOST - New York Stock Exchange, Inc. - US8887871080 - Common Stock - Currency: USD

39.97  +1.47 (+3.82%)

After market: 39.85 -0.12 (-0.3%)

Fundamental Rating

4

Overall TOST gets a fundamental rating of 4 out of 10. We evaluated TOST against 102 industry peers in the Financial Services industry. TOST has a great financial health rating, but its profitability evaluates not so good. TOST shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

TOST had negative earnings in the past year.
TOST had a positive operating cash flow in the past year.
In the past 5 years TOST always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: TOST reported negative operating cash flow in multiple years.
TOST Yearly Net Income VS EBIT VS OCF VS FCFTOST Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 -200M -400M

1.2 Ratios

Looking at the Return On Assets, with a value of -2.20%, TOST is doing worse than 84.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of -3.45%, TOST is doing worse than 74.51% of the companies in the same industry.
Industry RankSector Rank
ROA -2.2%
ROE -3.45%
ROIC N/A
ROA(3y)-18.75%
ROA(5y)-31.37%
ROE(3y)-30.1%
ROE(5y)-67.31%
ROIC(3y)N/A
ROIC(5y)N/A
TOST Yearly ROA, ROE, ROICTOST Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 -50 -100 -150

1.3 Margins

TOST's Gross Margin of 23.25% is in line compared to the rest of the industry. TOST outperforms 48.04% of its industry peers.
In the last couple of years the Gross Margin of TOST has grown nicely.
TOST does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 23.25%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.15%
GM growth 5YN/A
TOST Yearly Profit, Operating, Gross MarginsTOST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 10 -10 20 -20 -30

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8

2. Health

2.1 Basic Checks

TOST does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TOST has more shares outstanding
There is no outstanding debt for TOST. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TOST Yearly Shares OutstandingTOST Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
TOST Yearly Total Debt VS Total AssetsTOST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

TOST has an Altman-Z score of 17.85. This indicates that TOST is financially healthy and has little risk of bankruptcy at the moment.
TOST has a Altman-Z score of 17.85. This is amongst the best in the industry. TOST outperforms 96.08% of its industry peers.
There is no outstanding debt for TOST. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 17.85
ROIC/WACCN/A
WACC9.17%
TOST Yearly LT Debt VS Equity VS FCFTOST Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

TOST has a Current Ratio of 2.41. This indicates that TOST is financially healthy and has no problem in meeting its short term obligations.
TOST's Current ratio of 2.41 is fine compared to the rest of the industry. TOST outperforms 79.41% of its industry peers.
A Quick Ratio of 2.27 indicates that TOST has no problem at all paying its short term obligations.
TOST's Quick ratio of 2.27 is fine compared to the rest of the industry. TOST outperforms 78.43% of its industry peers.
Industry RankSector Rank
Current Ratio 2.41
Quick Ratio 2.27
TOST Yearly Current Assets VS Current LiabilitesTOST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 500M 1B 1.5B

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7

3. Growth

3.1 Past

TOST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 74.58%, which is quite impressive.
TOST shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.50%.
TOST shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 67.46% yearly.
EPS 1Y (TTM)74.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%183.33%
Revenue 1Y (TTM)29.5%
Revenue growth 3Y67.46%
Revenue growth 5YN/A
Sales Q2Q%26.45%

3.2 Future

Based on estimates for the next years, TOST will show a very strong growth in Earnings Per Share. The EPS will grow by 45.76% on average per year.
Based on estimates for the next years, TOST will show a very strong growth in Revenue. The Revenue will grow by 20.58% on average per year.
EPS Next Y104.9%
EPS Next 2Y69.23%
EPS Next 3Y53.5%
EPS Next 5Y45.76%
Revenue Next Year28.13%
Revenue Next 2Y25.84%
Revenue Next 3Y23.86%
Revenue Next 5Y20.58%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
TOST Yearly Revenue VS EstimatesTOST Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B
TOST Yearly EPS VS EstimatesTOST Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 1 -1 2

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2

4. Valuation

4.1 Price/Earnings Ratio

TOST reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 98.44, TOST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TOST is valued a bit more expensive than 79.41% of the companies in the same industry.
TOST is valuated expensively when we compare the Price/Forward Earnings ratio to 24.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 98.44
TOST Price Earnings VS Forward Price EarningsTOST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200

4.2 Price Multiples

TOST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TOST is more expensive than 64.71% of the companies in the same industry.
60.78% of the companies in the same industry are cheaper than TOST, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 89.73
EV/EBITDA 1181.47
TOST Per share dataTOST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

TOST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TOST's earnings are expected to grow with 53.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y69.23%
EPS Next 3Y53.5%

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0

5. Dividend

5.1 Amount

TOST does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TOAST INC-CLASS A

NYSE:TOST (1/28/2025, 8:08:08 PM)

After market: 39.85 -0.12 (-0.3%)

39.97

+1.47 (+3.82%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners88.38%
Inst Owner Change-0.36%
Ins Owners1.66%
Ins Owner Change-4.94%
Market Cap22.70B
Analysts73.53
Price Target39.95 (-0.05%)
Short Float %7.81%
Short Ratio4.26
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)217.84%
Min EPS beat(2)205.59%
Max EPS beat(2)230.1%
EPS beat(4)3
Avg EPS beat(4)114.49%
Min EPS beat(4)-6.67%
Max EPS beat(4)230.1%
EPS beat(8)5
Avg EPS beat(8)55.77%
EPS beat(12)9
Avg EPS beat(12)50.35%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)-0.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)1.22%
Revenue beat(8)4
Avg Revenue beat(8)0.79%
Revenue beat(12)8
Avg Revenue beat(12)1.71%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.03%
PT rev (3m)40.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)737.39%
EPS NY rev (1m)0%
EPS NY rev (3m)125.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.7%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 98.44
P/S 4.87
P/FCF 89.73
P/OCF 74.44
P/B 15.99
P/tB 17.67
EV/EBITDA 1181.47
EPS(TTM)-0.15
EYN/A
EPS(NY)0.41
Fwd EY1.02%
FCF(TTM)0.45
FCFY1.11%
OCF(TTM)0.54
OCFY1.34%
SpS8.2
BVpS2.5
TBVpS2.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.2%
ROE -3.45%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 23.25%
FCFM 5.43%
ROA(3y)-18.75%
ROA(5y)-31.37%
ROE(3y)-30.1%
ROE(5y)-67.31%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.15%
GM growth 5YN/A
F-Score7
Asset Turnover2.09
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 115.56%
Cap/Sales 1.12%
Interest Coverage N/A
Cash Conversion 1794.12%
Profit Quality N/A
Current Ratio 2.41
Quick Ratio 2.27
Altman-Z 17.85
F-Score7
WACC9.17%
ROIC/WACCN/A
Cap/Depr(3y)119.74%
Cap/Depr(5y)141.57%
Cap/Sales(3y)1.14%
Cap/Sales(5y)2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)74.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%183.33%
EPS Next Y104.9%
EPS Next 2Y69.23%
EPS Next 3Y53.5%
EPS Next 5Y45.76%
Revenue 1Y (TTM)29.5%
Revenue growth 3Y67.46%
Revenue growth 5YN/A
Sales Q2Q%26.45%
Revenue Next Year28.13%
Revenue Next 2Y25.84%
Revenue Next 3Y23.86%
Revenue Next 5Y20.58%
EBIT growth 1Y91.52%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year218.69%
EBIT Next 3Y64.62%
EBIT Next 5Y44.03%
FCF growth 1Y229.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y280.51%
OCF growth 3YN/A
OCF growth 5YN/A