Toast, Inc. (TOST) on Decifer

Decifer ranks TOST number 12 of 265 tracked names on durable business quality.

Why it ranks here

• It earns solid returns on the money it puts to work, around 14% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 24% a year and profits grew 1,635% over the past year.
• It keeps a healthy share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders.
• One of 3 financial software suppliers with 14% returns and 1635% profit growth in a partly recognized funded system, though momentum of 10 out of 35 keeps it from the very top tier.

The current read

The evidence on TOST lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Restaurant Digitization: Restaurants are rapidly adopting integrated point-of-sale, payments, and back-office software to manage labor and digital ordering.
• Digital Payments: Consumer and commercial payment volume is migrating structurally to digital rails, with cross-border e-commerce and emerging-market card penetration compounding double-digit annual growth.

Read the full TOST research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.