Chewy (CHWY) AI Stock Analysis

• Market Cap: $15.22B
• Dividend Yield: N/A
• Average Volume (3M): 6.89M
• Price to Earnings (P/E): 40.9
• Beta (1Y): 1.32
• Revenue Growth: 6.40%
• EPS Growth: 891.13%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 67
• Industry: Specialty Retail
• EPS (TTM): 0.90
• Shares Outstanding: 193,939,670
• 10 Day Avg. Volume: 6,338,299
• 30 Day Avg. Volume: 6,891,113
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.21
• Price to Cash Flow (P/CF): 18.80
• P/FCF Ratio: 22.70
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.75
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.42
• Price Target Upside: 8.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

Chewy's overall stock score reflects its robust financial performance driven by revenue growth and cash flow strength, alongside positive technical momentum. However, high valuation and reliance on liabilities temper the outlook. Continued operational improvements and strategic expansions are essential for sustaining growth.

Positive Factors

Customer Growth

Active customers are growing and margins are expanding.

Market Share

Chewy's strong execution and customer growth have led to significant market share gains in a stable market.

Profitability

Marketing investments are yielding a good return and management feels comfortable they can outpace industry growth.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 37.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 37.14 is above the 20-day moving average (MA) of 34.15, above the 50-day MA of 34.30, and above the 200-day MA of 31.63, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 91.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHWY.

Chewy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHWY	75 Outperform	$15.22B	40.92	101.78%	―	6.40%	891.13%
CART	72 Outperform	$10.97B	25.66	12.68%	―	11.05%	―
TDUP	65 Neutral	$497.20M	―	-79.06%	―	-6.95%	-0.73%
Sector *	60 Neutral	$6.87B	11.74	3.18%	4.16%	2.37%	-21.84%
ETSY	60 Neutral	$4.91B	19.34	-39.97%	―	2.18%	5.77%
WOOF	51 Neutral	$856.97M	―	-8.86%	―	-2.22%	92.17%
W	37 Underperform	$3.71B	―	17.86%	―	-1.27%	38.07%

Chewy Corporate Events

Chewy Expands Board with New Director Appointment

On April 24, 2025, Chewy, Inc. expanded its board of directors from thirteen to fourteen members by appointing Dr. Nat Goldhaber as a Class I director, with his term set to expire at the company’s annual meeting of stockholders in 2026. Dr. Goldhaber, an independent director under SEC and NYSE rules, brings extensive experience in venture capital, clean energy, and healthcare investments, having co-founded Claremont Creek Ventures. His appointment is expected to enhance Chewy’s strategic direction, leveraging his expertise in technology and energy sectors.

Spark’s Take on CHWY Stock

According to Spark, TipRanks’ AI Analyst, CHWY is a Outperform.

Chewy’s overall stock score of 76 reflects its strong financial performance and positive earnings call, which highlight revenue growth, profitability, and cash flow strength. Technical indicators show positive momentum, although high valuation and operational efficiency remain areas for improvement.

To see Spark’s full report on CHWY stock, click here.

Chewy Expands Board with New Director Appointment

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.