Chewy (CHWY) AI Stock Analysis

• Market Cap: $11.23B
• Dividend Yield: N/A
• Average Volume (3M): 7.39M
• Price to Earnings (P/E): 55.9
• Beta (1Y): 0.93
• 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: 7,398,048
• 30 Day Avg. Volume: 7,393,394
• 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: 0.98
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 32.47
• 1Y Price Target: $46.20
• Price Target Upside: 70.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 0.81
• Revenue Forecast (FY): $13.59B

• Rating: 63 Neutral
• Price Target: $26.00 ▼(-3.95% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by improving financial performance and strong cash generation, reinforced by a constructive earnings call with continued growth in Autoship and expanding profitability. These positives are tempered by weak technical momentum (price below major moving averages, negative MACD) and a demanding valuation (high P/E with no dividend support).

Positive Factors

Cash generation

Sustained TTM operating cash flow (~$636M) and FCF (~$487M) create durable internal funding for reinvestment, working capital and buybacks. Strong cash conversion improves financial flexibility, lowers reliance on external capital, and underpins long-term strategic initiatives.

Recurring revenue (Autoship)

Robust Autoship growth (13.6%, $2.61B) strengthens recurring revenue mix and customer retention. Predictable repeat purchases raise lifetime value, smooth demand, and support margin stability versus one‑time transactions, reinforcing a durable competitive advantage in e‑commerce pet retail.

Completed CFO succession

Formalizing a permanent CFO with internal finance and operations experience reduces execution risk and signals board confidence. Deppe's institutional knowledge and performance‑linked incentives can sharpen capital allocation, margin discipline, and multi‑year delivery on the 10% adjusted EBITDA target.

Negative Factors

Thin net margins

A TTM net margin near 1.6% leaves a narrow earnings cushion versus cost shocks or promotional cycles. Even with improving operating profit, thin bottom‑line profitability constrains internal reinvestment, limits shock absorption, and makes sustainable earnings progress sensitive to modest margin setbacks.

SG&A and margin pressure risk

Elevated SG&A and explicit guidance for sequential margin compression from promotions and rising media costs indicate structural cost volatility. Persistent promotional intensity or higher marketing expenses could erode margin gains and require ongoing discipline to sustain long‑term profitability targets.

Balance sheet sensitivity

Although absolute debt is moderate (~$523M), a relatively small and volatile equity base produces elevated leverage ratios. That sensitivity magnifies downside risk in adverse conditions, reduces financial flexibility, and can raise funding costs or constrain strategic capital deployment.

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

Improving fundamentals supported by stronger gross margin (~29.6% TTM), a shift to positive operating profit/net income, and notably strong operating cash flow (~$636M TTM) and free cash flow (~$487M TTM). Offsets are still-thin net margin (~1.6% TTM) and a modest/volatile equity base that makes leverage metrics less comfortable despite manageable absolute debt.

Income Statement

CHWY’s profitability trajectory has improved meaningfully versus earlier years, with TTM (Trailing-Twelve-Months) showing positive operating profit and net income. Gross margin has gradually strengthened over time (roughly mid‑20%s in 2021 to ~29.6% TTM), signaling better unit economics and/or pricing discipline. The key weakness is that bottom-line profitability remains thin (TTM net margin ~1.6%), and growth is inconsistent—annual revenue growth slowed in 2025 versus prior years despite the strong TTM growth figure, suggesting momentum may be uneven.

Balance Sheet

Leverage looks manageable in absolute dollars (TTM debt of ~$523M against ~$3.29B in assets), but equity has been volatile and relatively low, which keeps leverage metrics elevated (debt-to-equity ~1.11 TTM and materially higher in some prior years). Return on equity is very high in recent periods, but this is amplified by a smaller equity base, so it’s less “clean” as a quality signal. Overall, the balance sheet is improved from earlier stress points, but still carries sensitivity due to modest equity cushion.

Cash Flow

Cash generation is a clear positive: TTM (Trailing-Twelve-Months) operating cash flow (~$636M) and free cash flow (~$487M) are strong and have grown versus prior years. Free cash flow conversion is solid but not exceptional (TTM free cash flow is ~76% of net income), implying some working-capital and/or reinvestment needs. While operating cash flow strength supports flexibility, the data also implies cash flow is not dramatically outpacing accounting earnings, which modestly tempers the score.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	12.58B	11.86B	11.15B	10.12B	8.97B	7.15B
Gross Profit	3.72B	3.47B	3.16B	2.83B	2.39B	1.82B
EBITDA	338.25M	271.77M	161.50M	138.56M	-17.72M	-54.80M
Net Income	206.39M	392.74M	39.58M	49.90M	-75.21M	-92.49M
Balance Sheet
Total Assets	3.29B	3.01B	3.19B	2.52B	2.09B	1.74B
Cash, Cash Equivalents and Short-Term Investments	701.50M	596.66M	1.13B	678.59M	603.08M	563.35M
Total Debt	523.00M	502.40M	527.79M	471.82M	410.17M	328.23M
Total Liabilities	2.83B	2.75B	2.68B	2.36B	2.07B	1.74B
Stockholders Equity	469.40M	261.46M	510.24M	160.27M	14.74M	-2.00M
Cash Flow
Free Cash Flow	487.00M	452.49M	342.93M	119.28M	8.55M	2.01M
Operating Cash Flow	635.72M	596.33M	486.21M	349.57M	191.74M	132.75M
Investing Cash Flow	-178.81M	394.57M	-287.36M	-615.48M	-193.27M	-123.69M
Financing Cash Flow	-288.00M	-996.74M	71.60M	-6.73M	41.26M	342.20M

Chewy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHWY, the sentiment is Neutral. The current price of 27.07 is above the 20-day moving average (MA) of 26.25, below the 50-day MA of 29.85, and below the 200-day MA of 36.29, indicating a neutral trend. The MACD of -0.99 indicates Negative momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 85.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHWY.

Chewy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CART	72 Outperform	$9.10B	23.80	14.92%	―	10.16%	18.29%
CHWY	63 Neutral	$11.23B	55.90	59.58%	―	9.80%	-46.84%
GPC	63 Neutral	$16.32B	251.82	1.51%	3.33%	3.26%	-25.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBWI	55 Neutral	$4.51B	7.00	―	4.16%	-1.04%	-20.88%
BBY	51 Neutral	$12.91B	20.46	22.49%	5.46%	-0.95%	-48.28%
WOOF	51 Neutral	$739.67M	-243.52	-0.19%	―	-3.85%	97.87%

Chewy Corporate Events

Chewy Finalizes CFO Succession, Reaffirms Profitability Targets

On February 23, 2026, Chewy’s board appointed Christopher S. “Chris” Deppe as Chief Financial Officer and principal financial officer, ending the interim tenure of Chief Accounting Officer William Billings in that role, while Billings remains CAO. Deppe, a veteran finance leader who joined Chewy in 2022 after more than 16 years at Amazon and earlier roles at Intel, receives a compensation package centered on salary, bonus eligibility, and substantial multi-year, performance-linked equity grants approved in connection with his promotion.

In a February 24, 2026 press release, Chewy highlighted Deppe’s role in sharpening its financial strategy and operational rigor and reaffirmed its fiscal 2025 guidance and long-term plan to reach a 10% adjusted EBITDA margin. The move signals a completed CFO succession process after a competitive search involving external candidates and underscores the board’s confidence that Deppe’s institutional knowledge and disciplined execution will support durable, profitable, capital-efficient growth for customers, partners, and shareholders.

The most recent analyst rating on (CHWY) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Chewy stock, see the CHWY Stock Forecast page.

Chewy announces upcoming retirement of Chief Technology Officer

On January 13, 2026, Chewy, Inc. announced that its Chief Technology Officer, Satish Mehta, had notified the company of his intention to retire, with his departure effective February 6, 2026. The company said it will begin a search for his successor, signaling an upcoming leadership transition in its technology organization that could influence Chewy’s long-term digital and operational strategy.

The most recent analyst rating on (CHWY) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Chewy stock, see the CHWY Stock Forecast page.