CHEWY INC - CLASS A (CHWY) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CHWY • US16679L1098

28.895 USD

-1.25 (-4.13%)

Last: Jan 30, 2026, 03:20 PM

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to CHWY. CHWY was compared to 122 industry peers in the Specialty Retail industry. CHWY has an average financial health and profitability rating. CHWY has a decent growth rate and is not valued too expensively.

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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.
In the past 5 years CHWY always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of CHWY (6.26%) is better than 74.59% of its industry peers.
CHWY has a better Return On Equity (43.97%) than 93.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.03%, CHWY belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.

		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 (1.64%) which is in line with its industry peers.
CHWY's Operating Margin of 1.61% is in line compared to the rest of the industry. CHWY outperforms 45.90% of its industry peers.
With a Gross Margin value of 29.56%, CHWY is not doing good in the industry: 69.67% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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.
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.

2.2 Solvency

CHWY has an Altman-Z score of 5.96. This indicates that CHWY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.96, CHWY belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
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	5.96

ROIC/WACC1.65

WACC9.71%

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.
The Current ratio of CHWY (0.85) is worse than 81.97% 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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

CHWY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.13%, which is quite impressive.
Looking at the last year, CHWY shows a quite strong growth in Revenue. The Revenue has grown by 9.80% in the last year.
The Revenue has been growing by 19.60% on average over the past years. This is quite good.

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.
Based on estimates for the next years, CHWY will show a small growth in Revenue. The Revenue will grow by 7.91% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 58.97 indicates a quite expensive valuation of CHWY.
CHWY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CHWY to the average of the S&P500 Index (28.39), we can say CHWY is valued expensively.
Based on the Price/Forward Earnings ratio of 32.81, the valuation of CHWY can be described as expensive.
CHWY's Price/Forward Earnings is on the same level as the industry average.
CHWY is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	58.97
Fwd PE	32.81

4.2 Price Multiples

66.39% of the companies in the same industry are cheaper than CHWY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHWY indicates a somewhat cheap valuation: CHWY is cheaper than 64.75% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.61
EV/EBITDA	36.11

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