Toast, Inc. (TOST)
Technology · NYQ · US
Fundamentals
Valuation and ratings
Toast, Inc. trades at USD30.33, close to the USD26.18 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 57 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 44.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Toast, Inc.
Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, India, and internationally. It offers a platform of software-as-a-service for restaurant operations and point of sale, such as Toast POS; Toast IQ, a conversational artificial intelligence; vendor management; multi-location management; kitchen display system; online ordering and delivery. It offers payroll and team management; inventory and supply chain tools; xtraCHEF by toast, a set of back-office tools for restaurants, including accounts payable automation, inventory management, ingredient price tracking, and recipe costing; financial technology solutions, including integrated payment processing, and restaurant-grade hardware. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in May 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.
TOST passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
15 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- ValueAct Capital, ValueAct Holdings, L.P.$341.86M · 6.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$125.56M · 0.1% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$114.56M · 0.2% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$91.77M · 0.1% of book
- Marshall Wace, MARSHALL WACE, LLP$76.87M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Toast, Inc. (TOST) undervalued?
Against our discounted cash flow estimate of USD26.18, TOST at USD30.33 is 14% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own TOST?
15 of the institutions we track reported a position in TOST in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is TOST's P/E ratio?
TOST trades at 44.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for TOST, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.