Education
About Us
Working with TipRanks
Follow Us
Chewy (CHWY)
NYSE:CHWY
Top Page
Chewy
(NYSE:CHWY)
73Outperform
Positive Factors
Customer Growth
Chewy is experiencing strong execution and active customer growth, which are positively influencing its profitability ramp.
Market Share
Chewy's strong execution and customer growth have led to significant market share gains in a stable market.
Negative Factors
Gross Margin Decline
The 4Q gross margin saw a larger-than-expected decline due to weather impacts and promotional activities.
Ownership Concerns
Concerns around another potential BC Partners sale (53% ownership) may be holding shares back near-term.
Chewy (CHWY) vs. S&P 500 (SPY)
Market Cap
$14.17B
Dividend YieldN/A
Average Volume (3M)6.90M
Price to Earnings (P/E)38.1
Beta (1Y)1.35
Revenue Growth6.40%
EPS Growth891.13%
CountryUS
Employees18,000
SectorConsumer Cyclical
Sector Strength61
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.90
Shares Outstanding193,939,670
10 Day Avg. Volume7,395,051
30 Day Avg. Volume6,897,849
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)N/A
Price to Sales (P/S)1.21
Price to Cash Flow (P/CF)18.80
P/FCF Ratio22.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.55Price Target Upside18.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
Chewy Business Overview & Revenue Model
Company DescriptionChewy, Inc. is a leading online retailer specializing in pet products and services. Operating primarily through its e-commerce platform, Chewy offers a wide range of pet supplies, including food, toys, grooming products, and healthcare items for various types of pets such as dogs, cats, fish, birds, and more. Founded in 2011 and headquartered in Dania Beach, Florida, Chewy focuses on providing exceptional customer service and a convenient shopping experience for pet owners across the United States.
How the Company Makes MoneyChewy generates revenue primarily through the sale of pet products via its online platform. The company's key revenue streams include the sale of pet food, treats, and supplies, as well as health and wellness products. Chewy also offers an autoship subscription service, which provides customers with the convenience of automatic reordering of pet supplies at a discount, contributing to recurring revenue. Additionally, Chewy has expanded its offerings to include pet pharmacy services, enabling customers to purchase prescription medications online. Strategic partnerships with major pet product brands and competitive pricing further support Chewy's revenue growth.
Chewy Financial Statement Overview
Summary
Chewy has shown strong revenue growth and a shift towards profitability, increasing its cash flow generation. The balance sheet shows reduced leverage, but the low equity ratio indicates potential risks.Income Statement
Chewy has demonstrated impressive revenue growth over the years, with a notable increase from 2020 to 2025. The gross profit margin has improved, reflecting better cost management, and the net profit margin turned positive in recent years, indicating a shift towards profitability. However, EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements.85
Very Positive
Balance Sheet
Chewy's balance sheet shows a manageable level of debt with improvements in stockholders' equity over time. The debt-to-equity ratio has decreased, signaling reduced financial leverage. However, the equity ratio remains relatively low, indicating that assets are still largely financed by liabilities, which poses potential risks if not managed carefully.70
Positive
Cash Flow
The company's cash flow generation has strengthened, with significant growth in operating and free cash flows. The free cash flow growth rate is positive, indicating healthy cash reserves for potential reinvestment. The operating cash flow to net income ratio is robust, suggesting strong cash flow relative to profitability. However, fluctuations in financing cash flow highlight potential volatility.78
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.86B | 11.15B | 10.10B | 8.89B | 7.15B |
| Gross Profit | ||||
| 3.47B | 3.16B | 2.83B | 2.37B | 1.82B |
| EBIT | ||||
| 112.59M | -23.63M | 55.75M | -72.18M | -90.46M |
| EBITDA | ||||
| 271.77M | 161.50M | 138.56M | -17.72M | -54.80M |
| Net Income Common Stockholders | ||||
| 392.74M | 39.58M | 49.90M | -75.46M | -94.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 596.66M | 1.13B | 677.38M | 603.08M | 563.35M |
| Total Assets | ||||
| 3.01B | 3.19B | 2.52B | 2.09B | 1.74B |
| Total Debt | ||||
| 502.40M | 527.79M | 471.76M | 410.17M | 328.23M |
| Net Debt | ||||
| -93.36M | -74.44M | 141.32M | -192.91M | -235.11M |
| Total Liabilities | ||||
| 2.75B | 2.68B | 2.30B | 2.07B | 1.74B |
| Stockholders Equity | ||||
| 261.46M | 510.24M | 213.96M | 14.74M | -2.00M |
| Cash Flow | Free Cash Flow | |||
| 452.49M | 342.93M | 119.28M | 8.55M | 2.01M |
| Operating Cash Flow | ||||
| 596.33M | 486.21M | 349.57M | 191.74M | 132.75M |
| Investing Cash Flow | ||||
| 394.57M | -287.36M | -615.48M | -193.27M | -123.69M |
| Financing Cash Flow | ||||
| -996.74M | 71.60M | -6.73M | 41.27M | 342.20M |
Chewy Technical Analysis
Positive
34.25
Price Trends
34.67
Positive
34.85
Positive
31.21
Positive
Market Momentum
-0.10
Negative
56.46
Neutral
92.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHWY, the sentiment is Positive. The current price of 34.25 is above the 20-day moving average (MA) of 33.10, below the 50-day MA of 34.67, and above the 200-day MA of 31.21, indicating a bullish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 92.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHWY.
Chewy Risk Analysis
Chewy disclosed 50 risk factors in its most recent earnings report. Chewy reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chewy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $14.17B | 38.09 | 101.78% | ― | 6.40% | 891.13% | |
67 Neutral | $10.97B | 25.66 | 12.68% | ― | 11.05% | ― | |
65 Neutral | $411.97M | ― | -79.06% | ― | -6.95% | -0.73% | |
63 Neutral | $4.67B | 18.41 | -39.97% | ― | 2.18% | 5.77% | |
60 Neutral | $7.23B | 11.55 | 3.67% | 4.04% | 2.96% | -13.54% | |
53 Neutral | $909.66M | ― | -8.86% | ― | -2.22% | 92.17% | |
30 Underperform | $3.45B | ― | 17.86% | ― | -1.27% | 38.07% |
* Consumer Cyclical Sector Average
Performance Comparison
CHWY
Chewy
35.01
18.45
111.41%
W
Wayfair
26.63
-28.72
-51.89%
ETSY
Etsy
43.50
-24.86
-36.37%
WOOF
Petco Health And Wellness Company Inc
3.06
1.44
88.89%
TDUP
thredUP
3.42
1.87
120.65%
CART
Maplebear
41.86
4.91
13.29%
Chewy Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: 1.90% | Next Earnings Date: May 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance for Chewy in fiscal year 2024, with significant growth in key areas such as revenue, customer base, and profitability. The company has demonstrated its ability to innovate and expand its offerings, particularly in the Autoship program and Vet Care Clinics. However, there are some concerns about the minimal impact of pricing on growth and the dependency on external factors for hard goods growth.Highlights
Strong Revenue Growth
Fourth quarter net sales increased approximately 15% year-over-year to $3.25 billion, resulting in full year 2024 net sales of $11.86 billion, representing 6% year-over-year growth.
Autoship Program Success
Autoship program represented 80.6% of Q4 net sales, with sales increasing by 21% in the fourth quarter and nearly 11% for the full year 2024.
Active Customer Growth
Chewy ended fiscal year 2024 with 20.5 million active customers, marking year-over-year growth for the first time in eight quarters.
Adjusted EBITDA Margin Improvement
Adjusted EBITDA margin for fiscal year 2024 reached 4.8%, reflecting year-over-year expansion of approximately 150 basis points.
Record Free Cash Flow
Chewy generated a record $452.5 million of free cash flow in fiscal year 2024, converting approximately 80% of adjusted EBITDA to free cash flow.
Sponsored Ads Business Growth
Sponsored ads business scaled to approximately 1% of net sales for full year 2024, contributing to year-over-year gross margin improvement.
Chewy Vet Care Clinics Expansion
Successfully opened eight CVC locations, reaching the upper end of the target range, with plans to open eight to 10 new clinics in fiscal year 2025.
Lowlights
Minimal Pricing Impact Expected
Guidance for 2025 anticipates minimal price inflation, which may impact revenue growth potential.
Hard Goods Growth Dependency
While hard goods outperformed consumables in Q4, this category's growth is reliant on factors such as new pet adoptions and market trends.
Company Guidance
In the Chewy Fourth Quarter 2024 Earnings Call, the company reported strong financial performance, exceeding the high end of their guidance ranges. Fourth quarter net sales grew approximately 15% year-over-year to $3.25 billion, contributing to full year net sales of $11.86 billion, marking a 6% increase from the previous year. Autoship customer sales saw significant growth, increasing by 21% in Q4 and 10.6% for the full year, with Autoship representing 80.6% of Q4 net sales. Chewy's adjusted EBITDA margin for fiscal year 2024 reached 4.8%, reflecting a year-over-year expansion of around 150 basis points, and the company generated a record $452.5 million in free cash flow. The call also highlighted the success of Chewy's sponsored ads business, which scaled to approximately 1% of net sales, and the opening of eight Chewy Vet Care Clinics, which exceeded expectations. For 2025, Chewy anticipates continued growth with net sales projected between $12.3 billion and $12.45 billion, reflecting a 6% to 7% year-over-year increase, along with further adjusted EBITDA margin expansion to between 5.4% and 5.7%.Chewy Corporate Events
Executive/Board Changes
Chewy Expands Board with New Director Appointment
Positive
Feb 25, 2025
On February 21, 2025, Chewy, Inc. expanded its board of directors from twelve to thirteen members, appointing Ms. Deborah Ellinger as a Class II director. Ms. Ellinger, an experienced leader in the consumer products and solutions industry, brings a wealth of experience from her previous roles, including CEO positions at various private-equity backed companies. Her appointment is expected to enhance Chewy’s strategic direction and governance, with her term set to expire at the company’s annual meeting of stockholders in 2027.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.