Chewy (CHWY) AI Stock Analysis

• Market Cap: $15.24B
• Dividend Yield: N/A
• Average Volume (3M): 7.52M
• Price to Earnings (P/E): 41.1
• Beta (1Y): 1.20
• Revenue Growth: 7.64%
• EPS Growth: 369.79%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Specialty Retail
• EPS (TTM): 0.05
• Shares Outstanding: 195,511,440
• 10 Day Avg. Volume: 5,296,442
• 30 Day Avg. Volume: 7,522,873
• PEG Ratio: N/A
• Price to Book (P/B): 39.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.31
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 99.49
• Enterprise Value/Ebitda: -36.33
• 1Y Price Target: $47.20
• Price Target Upside: 28.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 74 Outperform
• Price Target: $44.00 ▲(19.89%Upside)

Chewy's overall score reflects strong financial performance with notable revenue growth and profitability. The positive outlook from the earnings call further supports its potential. However, bearish technical indicators and high valuation suggest caution. The recent board appointment is a strategic positive.

Positive Factors

Customer Acquisition

Chewy Vet Care rollout is going well, with positive reviews and exceeding internal expectations for new customer acquisition.

Online Penetration

Expanding online penetration continues to be a key driver for Chewy's above-industry growth and shares gains.

Revenue Diversification

Chewy is diversifying revenue streams into high-margin areas such as pharmacy and sponsored ads, enhancing profitability.

Veterinary Practice Expansion

Chewy is well-positioned to capitalize on improving pet adoption trends and pets entering senior years with its growing veterinary practice and leading Pharmacy share.

Negative Factors

Growth Risks

There is a modest risk of a slowdown in growth in 4Q on tougher comps.

Market Share Utilization

Chewy Pharmacy is the largest pet pharmacy in the US, but its market share is low and services are underutilized, indicating significant growth potential.

Chewy Business Overview & Revenue Model

Company Description

Chewy, Inc. (CHWY) is an American online retailer specializing in pet food and pet-related products. Established in 2011 and headquartered in Dania Beach, Florida, Chewy operates within the e-commerce sector, providing a wide array of products such as pet food, supplies, and medications for various types of pets including dogs, cats, fish, birds, and reptiles. The company is known for its customer-centric approach, offering convenient online shopping experiences, auto-ship subscription services, and 24/7 customer support.

How the Company Makes Money

Chewy makes money primarily through the sale of pet food and pet-related products directly to consumers via its online platform. The company's revenue model is based on a direct-to-consumer approach, with key revenue streams including the sales of pet food, treats, supplies, and healthcare products. Chewy offers an auto-ship subscription service that provides recurring revenue and enhances customer retention by allowing customers to schedule regular deliveries of their chosen products. Additionally, Chewy has established partnerships with numerous pet product brands and manufacturers to offer a broad selection of items, which contributes to a diverse product range and revenue stability. The company also benefits from its proprietary private label products, which generally have higher margins than third-party products.

Chewy Financial Statement Overview

Summary

Chewy demonstrates strong financial health with significant revenue growth, improved profit margins, and robust cash flow generation. Despite some balance sheet concerns due to liabilities, the company is effectively managing its financial position.

Income Statement

Chewy has shown impressive revenue growth, with a substantial increase from $7.1 billion in 2021 to $12.1 billion TTM (Trailing-Twelve-Months). Gross profit margins have improved consistently, indicating strong pricing power and cost management. The company has transitioned from negative EBIT and net income in 2021 to positive figures, showing a clear path to profitability.

Balance Sheet

The balance sheet shows a healthy equity growth from negative in 2021 to $375.6 million TTM, with a manageable debt-to-equity ratio. However, high liabilities relative to assets may pose risks if not managed carefully. The equity ratio has improved, reflecting better asset management.

Cash Flow

Chewy's operating cash flow has shown strong growth, supporting its operational expansion. The free cash flow has also improved significantly, enhancing its financial flexibility. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	268.21M	161.50M	138.56M	-17.72M	-54.80M
Net Income	392.74M	39.58M	49.90M	-75.46M	-94.51M
Balance Sheet
Total Assets	3.01B	3.19B	2.52B	2.09B	1.74B
Cash, Cash Equivalents and Short-Term Investments	596.66M	1.13B	678.59M	603.08M	563.35M
Total Debt	502.40M	527.79M	471.82M	410.17M	328.23M
Total Liabilities	2.75B	2.68B	2.36B	2.07B	1.74B
Stockholders Equity	261.46M	510.24M	160.27M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 36.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 36.7 is below the 20-day moving average (MA) of 38.06, below the 50-day MA of 41.54, and above the 200-day MA of 36.11, indicating a neutral trend. The MACD of -1.37 indicates Positive momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.28 is Positive, 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	77 Outperform	$12.51B	31.51	12.96%	―	11.34%	―
CHWY	74 Outperform	$15.24B	41.11	76.24%	―	7.64%	369.79%
ETSY	63 Neutral	$5.78B	46.60	-39.97%	―	2.38%	-38.88%
Sector *	62 Neutral	$16.51B	10.46	-8.28%	3.32%	1.44%	-22.58%
TDUP	62 Neutral	$976.72M	―	-69.51%	―	-10.55%	9.27%
W	52 Neutral	$8.42B	―	17.86%	―	-0.89%	46.62%
WOOF	51 Neutral	$839.75M	―	-5.90%	―	-2.37%	95.07%

Chewy Corporate Events

Chewy’s Annual Stockholders Meeting Highlights Key Decisions

On July 10, 2025, Chewy, Inc. held its annual meeting of stockholders where key decisions were made, including the election of four directors to the board, the ratification of Deloitte & Touche LLP as the independent accounting firm for the fiscal year ending February 1, 2026, and the approval of executive compensation on a non-binding basis. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (CHWY) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Chewy stock, see the CHWY Stock Forecast page.

Chewy Appoints Interim CFO After Reeder’s Resignation

Chewy, Inc. announced that its Chief Financial Officer, David Reeder, will resign effective July 3, 2025, to return to the semiconductor industry as a CEO. On the same date, the company appointed William Billings as the interim principal financial officer, who will also continue his role as Chief Accounting Officer. Billings brings extensive experience from previous roles in finance and accounting at companies like GlobalFoundries and Coursera.

The most recent analyst rating on (CHWY) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Chewy stock, see the CHWY Stock Forecast page.

Chewy Completes Share Sale and Repurchase Agreements

On June 23, 2025, Chewy, Inc. entered into an Underwriting Agreement with Buddy Chester Sub LLC and J.P. Morgan Securities LLC for the sale of 23,952,096 shares of Class A common stock at $41.95 per share, with an additional option for 3,592,815 shares, which was exercised on June 24, 2025. The offering closed on June 25, 2025, with Chewy not selling any shares or receiving proceeds, while the company and seller agreed to indemnify the underwriters against certain liabilities. Additionally, on June 20, 2025, Chewy agreed to repurchase $100 million worth of shares from the Seller, closing on June 25, 2025, with the repurchased shares being cancelled and retired. This repurchase was approved by a special committee of independent directors and did not utilize the company’s existing share repurchase program.

The most recent analyst rating on (CHWY) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Chewy stock, see the CHWY Stock Forecast page.

Chewy CFO Resignation Announced Amid Strategic Growth

On May 7, 2025, Chewy, Inc. announced the resignation of its Chief Financial Officer, David Reeder, who is leaving to become a CEO in the semiconductor industry. The company confirmed that his departure was not due to any disagreements and reaffirmed its first quarter fiscal 2025 guidance, indicating continued business momentum and strategic growth initiatives. Reeder will remain in his role until June to ensure a smooth transition, as Chewy searches for his successor.

The most recent analyst rating on (CHWY) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Chewy stock, see the CHWY Stock Forecast page.