CHEWY INC - CLASS A (CHWY) Stock Fundamental Analysis
NYSE:CHWY - New York Stock Exchange, Inc. - US16679L1098 - Common Stock - Currency: USD
CHWY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 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
CHWY had positive earnings in the past year.
CHWY had a positive operating cash flow in the past year.
In multiple years CHWY reported negative net income over the last 5 years.
In the past 5 years CHWY always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.69%, CHWY belongs to the best of the industry, outperforming 86.89% of the companies in the same industry.
CHWY has a better Return On Equity (103.37%) than 98.36% of its industry peers.
CHWY has a Return On Invested Capital of 11.14%. This is in the better half of the industry: CHWY outperforms 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.69% | ||
| ROE | 103.37% | ||
| ROIC | 11.14% |
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 better Profit Margin (3.21%) than 70.49% of its industry peers.
CHWY has a Operating Margin of 1.03%. This is comparable to the rest of the industry: CHWY outperforms 43.44% of its industry peers.
CHWY's Gross Margin of 29.24% is on the low side compared to the rest of the industry. CHWY is outperformed by 68.03% of its industry peers.
In the last couple of years the Gross Margin of CHWY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.03% | ||
| PM (TTM) | 3.21% | ||
| GM | 29.24% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.07%
GM growth 5Y4.37%
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.
The number of shares outstanding for CHWY has been reduced compared to 1 year ago.
Compared to 5 years ago, CHWY has more shares outstanding
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 6.71. This indicates that CHWY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.71, CHWY belongs to the top of the industry, outperforming 94.26% 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 | 6.71 |
ROIC/WACC1.16
WACC9.61%
2.3 Liquidity
CHWY has a Current Ratio of 0.80. 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 (0.80) than 86.89% of its industry peers.
CHWY has a Quick Ratio of 0.80. 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 Quick ratio of 0.42 is in line compared to the rest of the industry. CHWY outperforms 40.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.73% over the past year.
The Revenue has been growing slightly by 7.64% in the past year.
CHWY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.60% yearly.
EPS 1Y (TTM)22.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%6.67%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%8.28%
3.2 Future
The Earnings Per Share is expected to grow by 54.03% 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 7.00% on average per year.
EPS Next Y113.22%
EPS Next 2Y76.94%
EPS Next 3Y61.18%
EPS Next 5Y54.03%
Revenue Next Year5.79%
Revenue Next 2Y6.67%
Revenue Next 3Y7.14%
Revenue Next 5Y7%
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
With a Price/Earnings ratio of 141.85, CHWY can be considered very expensive at the moment.
CHWY's Price/Earnings is on the same level as the industry average.
CHWY is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 47.05, 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.
CHWY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.85 | ||
| Fwd PE | 47.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHWY indicates a slightly more expensive valuation: CHWY is more expensive than 68.03% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CHWY is valued a bit cheaper than the industry average as 61.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.25 | ||
| EV/EBITDA | 62.1 |
4.3 Compensation for Growth
CHWY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CHWY's earnings are expected to grow with 61.18% in the coming years.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y76.94%
EPS Next 3Y61.18%
5. Dividend
5.1 Amount
CHWY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.3
+0.49 (+1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.86%
Inst Owner Change0%
Ins Owners3.09%
Ins Owner Change23.76%
Market Cap15.81B
Analysts78.38
Price Target44.78 (16.92%)
Short Float %9.42%
Short Ratio2.65
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)0
Avg EPS beat(2)-12.07%
Min EPS beat(2)-19.01%
Max EPS beat(2)-5.13%
EPS beat(4)1
Avg EPS beat(4)34.46%
Min EPS beat(4)-88.16%
Max EPS beat(4)250.14%
EPS beat(8)4
Avg EPS beat(8)97.99%
EPS beat(12)8
Avg EPS beat(12)114.36%
EPS beat(16)9
Avg EPS beat(16)74.37%
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.28%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)2
Avg Revenue beat(16)-1.46%
PT rev (1m)10.91%
PT rev (3m)12.29%
EPS NQ rev (1m)-13.88%
EPS NQ rev (3m)-15.05%
EPS NY rev (1m)-14.84%
EPS NY rev (3m)-6.63%
Revenue NQ rev (1m)1.52%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.85 | ||
| Fwd PE | 47.05 | ||
| P/S | 1.31 | ||
| P/FCF | 35.25 | ||
| P/OCF | 26.32 | ||
| P/B | 42.09 | ||
| P/tB | 47.03 | ||
| EV/EBITDA | 62.1 |
EPS(TTM)0.27
EY0.7%
EPS(NY)0.81
Fwd EY2.13%
FCF(TTM)1.09
FCFY2.84%
OCF(TTM)1.46
OCFY3.8%
SpS29.31
BVpS0.91
TBVpS0.81
PEG (NY)1.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.69% | ||
| ROE | 103.37% | ||
| ROCE | 13.57% | ||
| ROIC | 11.14% | ||
| ROICexc | 33.74% | ||
| ROICexgc | 38.77% | ||
| OM | 1.03% | ||
| PM (TTM) | 3.21% | ||
| GM | 29.24% | ||
| FCFM | 3.71% |
ROA(3y)5.41%
ROA(5y)1.48%
ROE(3y)60.29%
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 3Y3.07%
GM growth 5Y4.37%
F-Score7
Asset Turnover3.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 130.61% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 248.85% | ||
| Profit Quality | 115.54% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 6.71 |
F-Score7
WACC9.61%
ROIC/WACC1.16
Cap/Depr(3y)177.55%
Cap/Depr(5y)250.04%
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.76%
Profit Quality(3y)408.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%6.67%
EPS Next Y113.22%
EPS Next 2Y76.94%
EPS Next 3Y61.18%
EPS Next 5Y54.03%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%8.28%
Revenue Next Year5.79%
Revenue Next 2Y6.67%
Revenue Next 3Y7.14%
Revenue Next 5Y7%
EBIT growth 1Y636.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year429.38%
EBIT Next 3Y99.12%
EBIT Next 5Y58.74%
FCF growth 1Y87.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.56%
OCF growth 3Y45.98%
OCF growth 5Y66.5%