1.51%
8.83%
32.09%
67.36%
123.61%
85.58%
-34.54%

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.

Market Data

Last Price 40.92
Change Percentage 1.51%
Open 41.34
Previous Close 40.31
Market Cap ( Millions) 23243
Volume 6501415
Year High 44.12
Year Low 17.95
M A 50 38.98
M A 200 29.49

Financial Ratios

FCF Yield 1.09%
Dividend Yield 0.00%
ROE -3.84%
Debt / Equity 2.68%
Net Debt / EBIDTA -14460.00%
Price To Book 16.22
Price Earnings Ratio -470.16
Price To FCF 91.87
Price To sales 4.99
EV / EBITDA 4503.91

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Financial Technology Solutions

Expected Growth : 11.2 %

What the company do ?

Financial Technology Solutions from Toast, Inc. provide restaurants with integrated payment processing, online ordering, and loyalty programs to streamline operations and enhance customer experience.

Why we expect these perspectives ?

Toast, Inc.'s 11.2% growth in Financial Technology Solutions is driven by increasing adoption of cloud-based restaurant management systems, rising demand for digital payment solutions, and growing need for data analytics to optimize operational efficiency. Additionally, the company's expanding partner network and strategic acquisitions are contributing to its rapid growth.

Segment nΒ°2 -> Subscription Services

Expected Growth : 11.53 %

What the company do ?

Subscription Services from Toast, Inc. allow restaurants to offer customizable, recurring subscription plans to their customers, increasing loyalty and revenue.

Why we expect these perspectives ?

Toast, Inc.'s Subscription Services growth of 11.53% is driven by increasing adoption of cloud-based restaurant management solutions, expansion into new markets, and rising demand for digital ordering and delivery integrations. Additionally, the company's focus on customer retention and upselling/cross-selling of value-added services, such as online ordering and loyalty programs, contribute to the segment's growth.

Segment nΒ°3 -> Hardware and Professional Services

Expected Growth : 10.55 %

What the company do ?

Hardware and Professional Services from Toast, Inc. provide restaurants with tailored solutions, including hardware installation, training, and ongoing support to streamline operations and enhance customer experience.

Why we expect these perspectives ?

Toast, Inc.'s 10.55% growth in Hardware and Professional Services is driven by increasing adoption of its point-of-sale systems among restaurants, expansion into new markets, and growing demand for digital transformation in the hospitality industry. Additionally, the company's focus on providing integrated solutions and exceptional customer service has led to higher sales of hardware and professional services.

Toast, Inc. Products

Product Range What is it ?
Toast POS A cloud-based point-of-sale system designed for restaurants, cafes, and bars to manage orders, process payments, and track inventory.
Online Ordering A platform that allows restaurants to integrate online ordering into their website and social media channels, providing customers with a seamless ordering experience.
Delivery A delivery platform that integrates with Toast POS, allowing restaurants to manage their own delivery operations and provide customers with real-time tracking updates.
Digital Menu Boards A digital signage solution that allows restaurants to easily update menu items, prices, and promotions across all locations.
Loyalty and Rewards A loyalty and rewards program that integrates with Toast POS, allowing restaurants to reward customers and encourage repeat business.
Gift Cards A gift card program that integrates with Toast POS, allowing restaurants to sell and redeem gift cards online and in-store.
Reporting and Analytics A reporting and analytics platform that provides restaurants with insights into sales, labor, and inventory data.

Toast, Inc.'s Porter Forces

The threat of substitutes for Toast, Inc. is medium because while there are some alternatives to toast, such as cereal or oatmeal, they are not perfect substitutes and many consumers still prefer toast.

The bargaining power of customers for Toast, Inc. is low because individual customers do not have a significant impact on the market, and the company has a large customer base.

The bargaining power of suppliers for Toast, Inc. is medium because while there are some large suppliers of wheat and other ingredients, the company has some flexibility in its supply chain and can negotiate prices.

The threat of new entrants for Toast, Inc. is high because the barriers to entry are relatively low, and new companies can easily enter the market with a new type of toast or a new brand.

The intensity of rivalry for Toast, Inc. is high because there are many established players in the market, and the company must compete on price, quality, and innovation to maintain its market share.

Capital Structure

Value
Debt Weight 3.55%
Debt Cost 12.74%
Equity Weight 96.45%
Equity Cost 12.74%
WACC 12.74%
Leverage 3.69%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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AFRM Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
40.92$
Current Price
40.92$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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