CHEWY INC - CLASS A (CHWY) Stock Fundamental Analysis
NYSE:CHWY - New York Stock Exchange, Inc. - US16679L1098 - Common Stock - Currency: USD
Overall CHWY gets a fundamental rating of 4 out of 10. We evaluated CHWY against 120 industry peers in the Specialty Retail industry. CHWY has an average financial health and profitability rating. CHWY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHWY was profitable.
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.
Each year in the past 5 years CHWY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.67%, CHWY belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
CHWY has a better Return On Equity (180.92%) than 99.15% of its industry peers.
With a decent Return On Invested Capital value of 11.63%, CHWY is doing good in the industry, outperforming 78.63% of the companies in the same industry.
| 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
CHWY has a better Profit Margin (3.53%) than 69.23% of its industry peers.
CHWY's Operating Margin of 0.90% is in line compared to the rest of the industry. CHWY outperforms 41.03% of its industry peers.
The Gross Margin of CHWY (29.18%) is worse than 67.52% of its industry peers.
In the last couple of years the Gross Margin of CHWY has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHWY is creating some value.
CHWY has more shares outstanding than it did 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 6.30 indicates that CHWY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.30, CHWY belongs to the top of the industry, outperforming 94.02% of the companies in the same industry.
CHWY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.3 |
ROIC/WACC1.12
WACC10.39%
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's Current ratio of 0.74 is on the low side compared to the rest of the industry. CHWY is outperformed by 91.45% of its industry peers.
A Quick Ratio of 0.35 indicates that CHWY may have some problems paying its short term obligations.
CHWY's Quick ratio of 0.35 is on the low side compared to the rest of the industry. CHWY is outperformed by 65.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1500.00% over the past year.
Looking at the last year, CHWY shows a small growth in Revenue. The Revenue has grown by 4.11% in the last year.
The Revenue has been growing by 25.84% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)1500%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%112.5%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y15.98%
Revenue growth 5Y25.84%
Sales Q2Q%5.08%
3.2 Future
The Earnings Per Share is expected to grow by 75.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, CHWY will show a small growth in Revenue. The Revenue will grow by 6.73% on average per year.
EPS Next Y676.47%
EPS Next 2Y116.47%
EPS Next 3Y88.98%
EPS Next 5Y75.7%
Revenue Next Year6.58%
Revenue Next 2Y5.93%
Revenue Next 3Y6.52%
Revenue Next 5Y6.73%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 115.41, the valuation of CHWY can be described as expensive.
CHWY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CHWY to the average of the S&P500 Index (30.30), we can say CHWY is valued expensively.
With a Price/Forward Earnings ratio of 65.67, CHWY can be considered very expensive at the moment.
62.39% of the companies in the same industry are cheaper than CHWY, based on the Price/Forward Earnings ratio.
CHWY is valuated expensively when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 115.41 | ||
| Fwd PE | 65.67 |
4.2 Price Multiples
CHWY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CHWY is more expensive than 69.23% 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 | 41.5 | ||
| EV/EBITDA | 67.38 |
4.3 Compensation for Growth
The 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 88.98% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y116.47%
EPS Next 3Y88.98%
5. Dividend
5.1 Amount
CHWY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.93
-0.65 (-1.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners80.08%
Inst Owner Change2.31%
Ins Owners11.17%
Ins Owner Change-84.45%
Market Cap15.04B
Analysts80.56
Price Target38.23 (3.52%)
Short Float %7.9%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)80.99%
Min EPS beat(2)-88.16%
Max EPS beat(2)250.14%
EPS beat(4)3
Avg EPS beat(4)170.77%
Min EPS beat(4)-88.16%
Max EPS beat(4)386.44%
EPS beat(8)6
Avg EPS beat(8)143.04%
EPS beat(12)9
Avg EPS beat(12)120.68%
EPS beat(16)11
Avg EPS beat(16)109.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-1.9%
Revenue beat(4)0
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.05%
Revenue beat(12)2
Avg Revenue beat(12)-1.35%
Revenue beat(16)3
Avg Revenue beat(16)-1.35%
PT rev (1m)5.17%
PT rev (3m)21.13%
EPS NQ rev (1m)-43.73%
EPS NQ rev (3m)22.23%
EPS NY rev (1m)0.98%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 115.41 | ||
| Fwd PE | 65.67 | ||
| P/S | 1.31 | ||
| P/FCF | 41.5 | ||
| P/OCF | 30.84 | ||
| P/B | 67.31 | ||
| P/tB | 81.73 | ||
| EV/EBITDA | 67.38 |
EPS(TTM)0.32
EY0.87%
EPS(NY)0.56
Fwd EY1.52%
FCF(TTM)0.89
FCFY2.41%
OCF(TTM)1.2
OCFY3.24%
SpS28.15
BVpS0.55
TBVpS0.45
PEG (NY)0.17
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 | 6.3 |
F-Score7
WACC10.39%
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)1500%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%112.5%
EPS Next Y676.47%
EPS Next 2Y116.47%
EPS Next 3Y88.98%
EPS Next 5Y75.7%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y15.98%
Revenue growth 5Y25.84%
Sales Q2Q%5.08%
Revenue Next Year6.58%
Revenue Next 2Y5.93%
Revenue Next 3Y6.52%
Revenue Next 5Y6.73%
EBIT growth 1Y774.52%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1921.82%
EBIT Next 3Y207.73%
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