CHEWY INC - CLASS A (CHWY)
US16679L1098 - Common Stock
We assign a fundamental rating of 4 out of 10 to CHWY. CHWY was compared to 119 industry peers in the Specialty Retail industry. CHWY has an average financial health and profitability rating. While showing a medium growth rate, CHWY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CHWY had positive earnings in the past year.
CHWY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CHWY reported negative net income in multiple years.
In the past 5 years CHWY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.67%, CHWY belongs to the top of the industry, outperforming 88.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 180.92%, CHWY belongs to the top of the industry, outperforming 99.14% of the companies in the same industry.
The Return On Invested Capital of CHWY (11.63%) is better than 78.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.67% | ||
| ROE | 180.92% | ||
| ROIC | 11.63% |
ROA(3y)-0.12%
ROA(5y)-6.53%
ROE(3y)-157.58%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 3.53%, CHWY is doing good in the industry, outperforming 69.83% of the companies in the same industry.
The Operating Margin of CHWY (0.90%) is comparable to the rest of the industry.
The Gross Margin of CHWY (29.18%) is worse than 67.24% of its industry peers.
CHWY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.9% | ||
| PM (TTM) | 3.53% | ||
| GM | 29.18% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.63%
GM growth 5Y6.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CHWY is still creating some value.
The number of shares outstanding for CHWY has been increased compared to 1 year ago.
Compared to 5 years ago, CHWY has more shares outstanding
CHWY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 6.22 indicates that CHWY is not in any danger for bankruptcy at the moment.
CHWY has a better Altman-Z score (6.22) than 93.10% of its industry peers.
There is no outstanding debt for CHWY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.22 |
ROIC/WACC1.12
WACC10.34%
2.3 Liquidity
CHWY has a Current Ratio of 0.74. This is a bad value and indicates that CHWY is not financially healthy enough and could expect problems in meeting its short term obligations.
CHWY has a worse Current ratio (0.74) than 90.52% of its industry peers.
CHWY has a Quick Ratio of 0.74. This is a bad value and indicates that CHWY is not financially healthy enough and could expect problems in meeting its short term obligations.
CHWY has a worse Quick ratio (0.35) than 64.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
CHWY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2450.00%, which is quite impressive.
The Revenue has been growing slightly by 4.11% in the past year.
Measured over the past years, CHWY shows a very strong growth in Revenue. The Revenue has been growing by 25.84% on average per year.
EPS 1Y (TTM)2450%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%350%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y15.98%
Revenue growth 5Y25.84%
Sales Q2Q%5.08%
3.2 Future
Based on estimates for the next years, CHWY will show a very strong growth in Earnings Per Share. The EPS will grow by 75.70% on average per year.
CHWY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.73% yearly.
EPS Next Y668.97%
EPS Next 2Y117.96%
EPS Next 3Y88.59%
EPS Next 5Y75.7%
Revenue Next Year6.41%
Revenue Next 2Y5.79%
Revenue Next 3Y6.37%
Revenue Next 5Y6.73%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 74.09, which means the current valuation is very expensive for CHWY.
Compared to the rest of the industry, the Price/Earnings ratio of CHWY is on the same level as its industry peers.
CHWY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 66.28, the valuation of CHWY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHWY indicates a slightly more expensive valuation: CHWY is more expensive than 62.93% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.53, CHWY is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.09 | ||
| Fwd PE | 66.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHWY is valued a bit more expensive than 68.97% of the companies in the same industry.
CHWY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.46 | ||
| EV/EBITDA | 65.7 |
4.3 Compensation for Growth
CHWY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CHWY's earnings are expected to grow with 88.59% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y117.96%
EPS Next 3Y88.59%
5. Dividend
5.1 Amount
CHWY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHEWY INC - CLASS A
NYSE:CHWY (1/15/2025, 3:14:05 PM)
37.785
+1.74 (+4.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners80.08%
Inst Owner Change-0.01%
Ins Owners11.17%
Ins Owner Change-31.28%
Market Cap15.39B
Analysts77.3
Price Target36.35 (-3.8%)
Short Float %9.07%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)193.5%
Min EPS beat(2)136.87%
Max EPS beat(2)250.14%
EPS beat(4)4
Avg EPS beat(4)227.03%
Min EPS beat(4)134.66%
Max EPS beat(4)386.44%
EPS beat(8)7
Avg EPS beat(8)171.17%
EPS beat(12)10
Avg EPS beat(12)139.43%
EPS beat(16)12
Avg EPS beat(16)123.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.9%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)2
Avg Revenue beat(12)-1.35%
Revenue beat(16)3
Avg Revenue beat(16)-1.36%
PT rev (1m)5.71%
PT rev (3m)17.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)117.2%
EPS NY rev (1m)-5.65%
EPS NY rev (3m)19.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.09 | ||
| Fwd PE | 66.28 | ||
| P/S | 1.34 | ||
| P/FCF | 42.46 | ||
| P/OCF | 31.55 | ||
| P/B | 68.86 | ||
| P/tB | 83.63 | ||
| EV/EBITDA | 65.7 |
EPS(TTM)0.51
EY1.35%
EPS(NY)0.57
Fwd EY1.51%
FCF(TTM)0.89
FCFY2.36%
OCF(TTM)1.2
OCFY3.17%
SpS28.15
BVpS0.55
TBVpS0.45
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.67% | ||
| ROE | 180.92% | ||
| ROCE | 13.19% | ||
| ROIC | 11.63% | ||
| ROICexc | 33.38% | ||
| ROICexgc | 39.07% | ||
| OM | 0.9% | ||
| PM (TTM) | 3.53% | ||
| GM | 29.18% | ||
| FCFM | 3.16% |
ROA(3y)-0.12%
ROA(5y)-6.53%
ROE(3y)-157.58%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.63%
GM growth 5Y6.98%
F-Score7
Asset Turnover3.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 110.95% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 226.16% | ||
| Profit Quality | 89.65% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 6.22 |
F-Score7
WACC10.34%
ROIC/WACC1.12
Cap/Depr(3y)252.85%
Cap/Depr(5y)256.7%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2450%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%350%
EPS Next Y668.97%
EPS Next 2Y117.96%
EPS Next 3Y88.59%
EPS Next 5Y75.7%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y15.98%
Revenue growth 5Y25.84%
Sales Q2Q%5.08%
Revenue Next Year6.41%
Revenue Next 2Y5.79%
Revenue Next 3Y6.37%
Revenue Next 5Y6.73%
EBIT growth 1Y774.52%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1921.78%
EBIT Next 3Y205.82%
EBIT Next 5Y108%
FCF growth 1Y880.95%
FCF growth 3Y446.59%
FCF growth 5YN/A
OCF growth 1Y166.48%
OCF growth 3Y54.13%
OCF growth 5YN/A