CHEWY INC - CLASS A (CHWY) Stock Fundamental Analysis
USA - NYSE:CHWY - US16679L1098 - Common Stock
38.2 USD
+0.02 (+0.05%)
38.29 USD
+0.09 (+0.24%)
CHWY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of CHWY get a neutral evaluation. Nothing too spectacular is happening here. 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.
CHWY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHWY's Return On Assets of 4.85% is fine compared to the rest of the industry. CHWY outperforms 67.77% of its industry peers.
The Return On Equity of CHWY (38.76%) is better than 91.74% of its industry peers.
CHWY has a better Return On Invested Capital (14.41%) than 83.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 38.76% | ||
| ROIC | 14.41% |
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 (1.22%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 1.32%, CHWY is in line with its industry, outperforming 46.28% of the companies in the same industry.
The Gross Margin of CHWY (29.45%) is worse than 66.12% of its industry peers.
In the last couple of years the Gross Margin of CHWY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.32% | ||
| PM (TTM) | 1.22% | ||
| GM | 29.45% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CHWY is still 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
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 6.80 indicates that CHWY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.80, CHWY belongs to the best of the industry, outperforming 90.91% 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 | 6.8 |
ROIC/WACC1.5
WACC9.6%
2.3 Liquidity
CHWY has a Current Ratio of 0.81. This is a bad value and indicates that CHWY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.81, CHWY is not doing good in the industry: 84.30% of the companies in the same industry are doing better.
A Quick Ratio of 0.41 indicates that CHWY may have some problems paying its short term obligations.
CHWY has a Quick ratio of 0.41. This is comparable to the rest of the industry: CHWY outperforms 40.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
CHWY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.52%, which is quite impressive.
CHWY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.04%.
The Revenue has been growing by 19.60% on average over the past years. This is quite good.
EPS 1Y (TTM)56.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%180%
Revenue 1Y (TTM)9.04%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%8.59%
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
The Revenue is expected to grow by 8.33% on average over the next years. This is quite good.
EPS Next Y113.53%
EPS Next 2Y77.1%
EPS Next 3Y93.74%
EPS Next 5Y54.03%
Revenue Next Year6.92%
Revenue Next 2Y7.01%
Revenue Next 3Y7.57%
Revenue Next 5Y8.33%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 106.11 indicates a quite expensive valuation of CHWY.
CHWY's Price/Earnings ratio is in line with the industry average.
CHWY is valuated expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 46.84, CHWY can be considered very expensive at the moment.
CHWY's Price/Forward Earnings is on the same level as the industry average.
CHWY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.11 | ||
| Fwd PE | 46.84 |
4.2 Price Multiples
66.12% of the companies in the same industry are cheaper than CHWY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CHWY is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.23 | ||
| EV/EBITDA | 53.93 |
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.
A more expensive valuation may be justified as CHWY's earnings are expected to grow with 93.74% in the coming years.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y77.1%
EPS Next 3Y93.74%
5. Dividend
5.1 Amount
CHWY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.2
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners81.39%
Inst Owner Change2.09%
Ins Owners2.17%
Ins Owner Change97.12%
Market Cap15.85B
Analysts78.38
Price Target44.81 (17.3%)
Short Float %7.51%
Short Ratio2.28
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)-11.06%
Min EPS beat(2)-19.01%
Max EPS beat(2)-3.12%
EPS beat(4)0
Avg EPS beat(4)-28.85%
Min EPS beat(4)-88.16%
Max EPS beat(4)-3.12%
EPS beat(8)3
Avg EPS beat(8)74.65%
EPS beat(12)7
Avg EPS beat(12)102.36%
EPS beat(16)9
Avg EPS beat(16)83.37%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.26%
Revenue beat(12)2
Avg Revenue beat(12)-0.82%
Revenue beat(16)2
Avg Revenue beat(16)-1.29%
PT rev (1m)-1.42%
PT rev (3m)10.98%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)-13.26%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-14.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.11 | ||
| Fwd PE | 46.84 | ||
| P/S | 1.28 | ||
| P/FCF | 34.23 | ||
| P/OCF | 25.92 | ||
| P/B | 40.64 | ||
| P/tB | 45.21 | ||
| EV/EBITDA | 53.93 |
EPS(TTM)0.36
EY0.94%
EPS(NY)0.82
Fwd EY2.13%
FCF(TTM)1.12
FCFY2.92%
OCF(TTM)1.47
OCFY3.86%
SpS29.76
BVpS0.94
TBVpS0.84
PEG (NY)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 38.76% | ||
| ROCE | 17.56% | ||
| ROIC | 14.41% | ||
| ROICexc | 39.96% | ||
| ROICexgc | 45.3% | ||
| OM | 1.32% | ||
| PM (TTM) | 1.22% | ||
| GM | 29.45% | ||
| FCFM | 3.75% |
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 Turnover3.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 123.38% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 216.21% | ||
| Profit Quality | 306.35% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 6.8 |
F-Score7
WACC9.6%
ROIC/WACC1.5
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)56.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%180%
EPS Next Y113.53%
EPS Next 2Y77.1%
EPS Next 3Y93.74%
EPS Next 5Y54.03%
Revenue 1Y (TTM)9.04%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%8.59%
Revenue Next Year6.92%
Revenue Next 2Y7.01%
Revenue Next 3Y7.57%
Revenue Next 5Y8.33%
EBIT growth 1Y142.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year435.2%
EBIT Next 3Y102.57%
EBIT Next 5Y60.01%
FCF growth 1Y36.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.41%
OCF growth 3Y45.98%
OCF growth 5Y66.5%