Toast TOST
Toast is an all-in-one software and payments technology platform for restaurants, offering order management, inventory, payroll, and point-of-sale solutions for operators of all sizes. Toast is growing strongly (revenue +23.1%, earnings +100%) and holds net cash (Net Debt/EBITDA -3.59), but its P/E of 38.73 and the rise in 10-year yields (5.17%) temper valuation appeal in the near term.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Toast is an all-in-one software and payments technology platform for restaurants, offering order management, inventory, payroll, and point-of-sale solutions for operators of all sizes. Toast is growing strongly (revenue +23.1%, earnings +100%) and holds net cash (Net Debt/EBITDA -3.59), but its P/E of 38.73 and the rise in 10-year yields (5.17%) temper valuation appeal in the near term.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.7 |
| Quality / Moat | 7.5 |
| Valuation | 6.1 |
| Growth | 9.2 |
| Dividend | 1.5 |
| Momentum | 3.5 |
| Risk & Context | 2.5 |
OVERALL SCORE: 6.2/10
Context and risks
The rise in 10-year Treasury yields (5.17%) affects Toast due to its high P/E (38.73) and growth profile: part of its value lies in distant cash flows. However, its net cash position mitigates financing risk, and its restaurant software business has no direct exposure to commodities or shipping routes.
News considered in the analysis
- Why the Market Dipped But Toast (TOST) Gained Today — Movimiento diario de mercado sin información fundamental nueva; ruido.
- Is Toast (TOST) a Buy as Wall Street Analysts Look Optimistic? — Sentimiento positivo de analistas; refuerza la tesis de crecimiento pero no es un evento material.
- Toast (TOST) Stock May Be A Bargain Despite A 330 Location Rollout — Expansión de 330 ubicaciones indica crecimiento orgánico; positivo moderado.
- Is Toast (TOST) Undervalued On Its Kung Fu Tea Rollout? — Nuevo cliente cadena (Kung Fu Tea) valida la plataforma; positivo moderado.
- Toast (TOST) Stock Dips While Market Gains: Key Facts — Movimiento de precio sin información nueva; ruido.
Verdict: Hold; growth and net cash justify the multiple, but rate sensitivity and negative momentum (-5.54%) suggest waiting for a better entry point.
Main risk: The demanding valuation (P/E 38.73) combined with a rising rate environment could compress the multiple if earnings growth decelerates.
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