Evaluating Toast: Insights From 8 Financial Analysts

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on Toast TOST in the last three months.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $28.5, a high estimate of $33.00, and a low estimate of $25.00. This current average reflects an increase of 6.03% from the previous average price target of $26.88.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Toast among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Toast. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Toast compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Toast's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Toast's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Toast analyst ratings.

All You Need to Know About Toast

Toast is a us-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 120,000 restaurant locations across the United States at the end of June 2024. The firm generates sales from software subscription fees, as a percentage take rate from each financial transaction it processes, from loan origination and servicing fees from its Toast Capital arm, and from hardware installation and professional services. Unlike competitors, Toast intermediates every payment transaction on its platform, processing some $126 billion in gross platform volume in 2023. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, reservation management, and loyalty programs.

Breaking Down Toast's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Toast displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 26.99%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: Toast's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.13%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Toast's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.13%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Toast's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.67%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.03, Toast adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.