Chewy (CHWY) AI Stock Analysis

• Market Cap: $13.28B
• Dividend Yield: N/A
• Average Volume (3M): 7.64M
• Price to Earnings (P/E): 66.1
• Beta (1Y): 0.89
• Revenue Growth: 9.80%
• EPS Growth: -46.84%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.14
• Shares Outstanding: 238,520,320
• 10 Day Avg. Volume: 10,141,480
• 30 Day Avg. Volume: 7,636,761
• PEG Ratio: 0.05
• Price to Book (P/B): 61.46
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 35.52
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 3.91
• Enterprise Value/Ebitda: 42.67
• 1Y Price Target: $47.20
• Price Target Upside: 47.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 0.52
• Revenue Forecast (FY): $12.60B

• Rating: 54 Neutral
• Price Target: $35.00 ▲(9.41% Upside)

Chewy's overall stock score reflects a mix of strong financial performance and strategic growth initiatives, offset by bearish technical indicators and a high valuation. The company's robust cash flow and revenue growth are positive, but the stock's current technical weakness and premium valuation present risks. Investors should monitor for potential technical rebounds and continued execution of strategic initiatives.

Positive Factors

Revenue Growth

Chewy's consistent revenue growth indicates strong market demand and effective sales strategies, enhancing its competitive position in the e-commerce sector.

Autoship Program

The Autoship program's success reflects customer loyalty and recurring revenue, providing stability and predictability to Chewy's financial performance.

Gross Margin Expansion

Improved gross margins indicate better cost management and pricing power, contributing to enhanced profitability and financial health over the long term.

Negative Factors

SG&A Deleveraging

Rising SG&A expenses can pressure operating margins, potentially limiting profitability improvements despite revenue growth.

Inbound Processing Costs

Increased processing costs could impact margins if not managed, highlighting potential vulnerabilities in cost structure due to external factors like tariffs.

Low Net Profit Margin

A low net profit margin suggests limited profitability, which can constrain reinvestment capabilities and affect long-term growth potential.

Chewy Business Overview & Revenue Model

Company Description

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. The company provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its www.chewy.com retail Website, as well as its mobile applications. It offers approximately 100,000 products from 3,000 partner brands. The company was founded in 2010 and is headquartered in Dania Beach, Florida.

How the Company Makes Money

Chewy generates revenue primarily through the sale of pet food and supplies via its online platform. The company's key revenue streams include direct product sales, subscription services through autoship, and various promotional partnerships with pet brands and manufacturers. Autoship subscriptions provide a predictable revenue stream, as customers can set up recurring orders for their pet essentials, often at discounted prices. Additionally, Chewy has established partnerships with leading pet product manufacturers, enabling it to offer exclusive products and promotions, which further enhance its sales. The company also invests in customer engagement strategies, such as personalized recommendations and loyalty programs, to increase repeat purchases and drive overall revenue growth.

Chewy Financial Statement Overview

Summary

Chewy shows positive growth trends with improving revenue and cash flow metrics. While profitability margins are modest, the company is managing its leverage better and generating strong cash flows. Continued focus on improving profitability and maintaining financial stability will be crucial for sustained growth.

Income Statement

Chewy has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.03%. The gross profit margin has improved slightly over time, reaching 29.45% in the TTM period. However, the net profit margin remains low at 1.22%, indicating limited profitability. The EBIT and EBITDA margins are modest, reflecting operational challenges but showing improvement over previous periods.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.27 in the TTM period, indicating better leverage management compared to previous years. However, the return on equity has decreased significantly to 48.34%, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains low, highlighting potential financial risk.

Cash Flow

Chewy's cash flow position is strong, with a free cash flow growth rate of 3.21% in the TTM period. The operating cash flow to net income ratio is healthy at 0.28, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.76 suggests efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.35B	11.86B	11.15B	10.12B	8.97B	7.15B
Gross Profit	3.64B	3.47B	3.16B	2.83B	2.39B	1.82B
EBITDA	332.88M	271.77M	161.50M	138.56M	-17.72M	-54.80M
Net Income	151.12M	392.74M	39.58M	49.90M	-75.21M	-92.49M
Balance Sheet
Total Assets	3.12B	3.01B	3.19B	2.52B	2.09B	1.74B
Cash, Cash Equivalents and Short-Term Investments	591.80M	596.66M	1.13B	678.59M	603.08M	563.35M
Total Debt	494.10M	502.40M	527.79M	471.82M	410.17M	328.23M
Total Liabilities	2.73B	2.75B	2.68B	2.36B	2.07B	1.74B
Stockholders Equity	389.90M	261.46M	510.24M	160.27M	14.74M	-2.00M
Cash Flow
Free Cash Flow	462.97M	452.49M	342.93M	119.28M	8.55M	2.01M
Operating Cash Flow	611.28M	596.33M	486.21M	349.57M	191.74M	132.75M
Investing Cash Flow	-153.51M	394.57M	-287.36M	-615.48M	-193.27M	-123.69M
Financing Cash Flow	-560.68M	-996.74M	71.60M	-6.73M	41.26M	342.20M

Chewy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHWY, the sentiment is Negative. The current price of 31.99 is below the 20-day moving average (MA) of 33.59, below the 50-day MA of 34.24, and below the 200-day MA of 37.45, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 9.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHWY.

Chewy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CART	79 Outperform	$11.82B	24.73	15.33%	―	10.16%	18.29%
GPC	69 Neutral	$17.23B	21.34	17.05%	3.33%	3.26%	-25.41%
BBY	62 Neutral	$14.58B	22.97	22.49%	5.46%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CHWY	54 Neutral	$13.28B	66.05	59.58%	―	9.80%	-46.84%
BBWI	53 Neutral	$3.94B	5.92	―	4.16%	-1.04%	-20.88%
WOOF	51 Neutral	$812.80M	-267.59	-0.19%	―	-3.85%	97.87%

Chewy Corporate Events

Chewy Inc. Reports Strong Q2 2025 Financial Performance

Chewy Inc., a leading online retailer in the pet products industry, offers a wide range of pet supplies and services, emphasizing convenience and customer-centric experiences. In its second quarter of fiscal year 2025, Chewy reported net sales of $3.10 billion, marking an 8.6% increase from the previous year. The company’s gross margin improved to 30.4%, while net income stood at $62 million, despite a decrease in net margin. Chewy’s Autoship program contributed significantly to sales, with a 15% increase, representing 83% of total net sales.

Chewy Inc’s Earnings Call Highlights Strong Growth and Strategic Initiatives

Chewy Inc’s recent earnings call painted a positive picture of the company’s financial health and strategic direction. The sentiment was largely optimistic, with strong sales growth and gross margin expansion driven by the Autoship program and new private brands. Despite some challenges with SG&A deleverage and temporary cost increases, Chewy’s overall performance and strategic initiatives suggest a promising future.