Overall CHWY gets a fundamental rating of 5 out of 10. We evaluated CHWY against 121 industry peers in the Specialty Retail industry. CHWY has only an average score on both its financial health and profitability. CHWY has a correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CHWY had positive earnings in the past year.
In the past year CHWY had a positive cash flow from operations.
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

CHWY's Return On Assets of 6.26% is fine compared to the rest of the industry. CHWY outperforms 74.38% of its industry peers.
CHWY's Return On Equity of 43.97% is amongst the best of the industry. CHWY outperforms 93.39% of its industry peers.
The Return On Invested Capital of CHWY (16.03%) is better than 85.12% of its industry peers.

		Industry Rank	Sector Rank
ROA	6.26%
ROE	43.97%
ROIC	16.03%

ROA(3y)5.41%

ROA(5y)1.48%

ROE(3y)60.29%

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

CHWY has a Profit Margin of 1.64%. This is comparable to the rest of the industry: CHWY outperforms 57.02% of its industry peers.
CHWY has a Operating Margin (1.61%) which is comparable to the rest of the industry.
With a Gross Margin value of 29.56%, CHWY is not doing good in the industry: 69.42% of the companies in the same industry are doing better.
CHWY's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	1.61%
PM (TTM)	1.64%
GM	29.56%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y3.07%

GM growth 5Y4.37%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for CHWY has been increased compared to 5 years ago.
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 5.87 indicates that CHWY is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHWY (5.87) is better than 92.56% of its industry peers.
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	5.87

ROIC/WACC1.64

WACC9.77%

2.3 Liquidity

CHWY has a Current Ratio of 0.85. 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 0.85 is on the low side compared to the rest of the industry. CHWY is outperformed by 81.82% of its industry peers.
CHWY has a Quick Ratio of 0.85. 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 Quick ratio (0.44) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.85
Quick Ratio	0.44

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 53.13% over the past year.
Looking at the last year, CHWY shows a quite strong growth in Revenue. The Revenue has grown by 9.80% in the last year.
Measured over the past years, CHWY shows a quite strong growth in Revenue. The Revenue has been growing by 19.60% on average per year.

EPS 1Y (TTM)53.13%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%1300%

Revenue 1Y (TTM)9.8%

Revenue growth 3Y10.08%

Revenue growth 5Y19.6%

Sales Q2Q%8.3%

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 57.17% on average per year.
The Revenue is expected to grow by 7.91% on average over the next years.

EPS Next Y126.7%

EPS Next 2Y84.04%

EPS Next 3Y61.23%

EPS Next 5Y57.17%

Revenue Next Year6.52%

Revenue Next 2Y7.4%

Revenue Next 3Y7.42%

Revenue Next 5Y7.91%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 59.41, CHWY can be considered very expensive at the moment.
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 28.32.
With a Price/Forward Earnings ratio of 33.06, CHWY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHWY is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CHWY to the average of the S&P500 Index (25.57), we can say CHWY is valued slightly more expensively.

		Industry Rank	Sector Rank
PE	59.41
Fwd PE	33.06

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 66.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHWY is valued a bit cheaper than 66.12% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.8
EV/EBITDA	34.8

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.
CHWY's earnings are expected to grow with 61.23% in the coming years. This may justify a more expensive valuation.