CHEWY INC - CLASS A (CHWY) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:CHWY - US16679L1098 - Common Stock

31.71 USD

-0.78 (-2.4%)

Last: 1/23/2026, 1:49:08 PM

Fundamental Rating

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 an average financial health and profitability rating. CHWY is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year CHWY was profitable.
In the past year CHWY had a positive cash flow from operations.
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

CHWY has a better Return On Assets (6.26%) than 74.38% of its industry peers.
With an excellent Return On Equity value of 43.97%, CHWY belongs to the best of the industry, outperforming 93.39% of the companies in the same industry.
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

The Profit Margin of CHWY (1.64%) is comparable to the rest of the industry.
CHWY has a Operating Margin (1.61%) which is comparable to the rest of the industry.
CHWY has a Gross Margin of 29.56%. This is in the lower half of the industry: CHWY underperforms 69.42% of its industry peers.
In the last couple of years the Gross Margin of CHWY has grown nicely.

		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

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.
CHWY has more shares outstanding than it did 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

CHWY has an Altman-Z score of 6.17. This indicates that CHWY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.17, CHWY belongs to the best of the industry, outperforming 92.56% 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	6.17

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.
A Quick Ratio of 0.44 indicates that CHWY may have some problems paying its short term obligations.
CHWY has a Quick ratio (0.44) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	0.85
Quick Ratio	0.44

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WACC

Debt/Equity

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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.
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

CHWY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.17% yearly.
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 Year6.85%

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

With a Price/Earnings ratio of 64.71, 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.
The average S&P500 Price/Earnings ratio is at 27.30. CHWY is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 36.01, CHWY can be considered very expensive at the moment.
CHWY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.32. CHWY is valued slightly more expensive when compared to this.

		Industry Rank	Sector Rank
PE	64.71
Fwd PE	36.01

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CHWY is valued a bit more expensive than the industry average as 66.12% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHWY indicates a somewhat cheap valuation: CHWY is cheaper than 65.29% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	27.01
EV/EBITDA	39.1

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.