Chewy Inc (CHWY)
NYSE:CHWY
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Chewy
(NYSE:CHWY)
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Rating:50Neutral
Price Target:
$19.50
▼(-29.14% Downside)
Action:Reiterated
Date:05/20/26
The score is held back primarily by mixed fundamentals (sharp TTM revenue decline, thin margins, and weaker TTM free cash flow) and bearish technicals with the stock below major moving averages. Offsetting factors include a multi-year profitability/FCF improvement trend and constructive corporate actions (expanded buyback authorization and CFO transition with reiterated profitability targets), but valuation remains elevated at ~75x earnings.
Positive Factors
Recurring revenue via Autoship
Chewy's Autoship subscription and recurring-order model creates durable, predictable repurchase behavior and higher customer lifetime value. That recurring demand smooths revenue volatility, lowers marginal customer acquisition needs, and supports multi-month cash flow visibility and operational planning.
Negative Factors
Sharp TTM revenue contraction
A roughly 25.8% trailing-twelve-month revenue decline materially weakens scale and operating leverage. Lower top-line volume makes margin expansion harder, increases per-unit fixed-cost burdens, and elevates execution risk if customer retention or Autoship adoption stalls over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue via Autoship
Chewy's Autoship subscription and recurring-order model creates durable, predictable repurchase behavior and higher customer lifetime value. That recurring demand smooths revenue volatility, lowers marginal customer acquisition needs, and supports multi-month cash flow visibility and operational planning.
Read all positive factors
Chewy Key Performance Indicators (KPIs)
Any
Active Customers
Indicates the total number of customers making purchases, reflecting the company's market reach and customer base growth.
Indicates the total number of customers making purchases, reflecting the company's market reach and customer base growth.
Data provided by:
The Fly
The FlyChewy (CHWY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.74B
Dividend YieldN/A
Average Volume (3M)8.48M
Price to Earnings (P/E)41.9
Beta (1Y)0.88
Revenue Growth6.24%
EPS Growth-41.25%
CountryUS
Employees18,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.53
Shares Outstanding232,505,430
10 Day Avg. Volume9,964,398
30 Day Avg. Volume8,477,923
Financial Highlights & Ratios
PEG Ratio-1.23
Price to Book (P/B)23.61
Price to Sales (P/S)0.93
P/FCF Ratio20.90
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda22.73
Forecast
1Y Price Target
$40.93Price Target Upside48.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)0.88
Revenue Forecast (FY)$13.66B
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 ...
How the Company Makes Money
Chewy primarily makes money by selling pet products directly to customers through its e-commerce platform. Its largest revenue stream is product sales, especially consumables such as pet food and treats, as well as hardgoods like toys, crates, and...
Chewy Earnings Call Summary
Earnings Call Date:Dec 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The earnings call was largely positive, with significant revenue growth, improved profitability, and strong performance of strategic initiatives like Chewy+ and health services. However, some challenges remain with SG&A costs and expected margin pressures in Q4.Positive Updates
Strong Revenue Growth
Q3 net sales grew over 8% year-over-year to $3.12 billion, exceeding the high end of guidance. Autoship customer sales increased by 13.6% to $2.61 billion.
Negative Updates
SG&A Challenges
SG&A, excluding share-based compensation and related taxes, was $588.6 million or 18.9% of net sales, including $2.7 million of onetime transaction costs.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Revenue Growth
Q3 net sales grew over 8% year-over-year to $3.12 billion, exceeding the high end of guidance. Autoship customer sales increased by 13.6% to $2.61 billion.
Read all positive updates
Company Guidance
During the Chewy Third Quarter 2025 Earnings Call, the company reported a strong financial performance, with net sales growing by 8.3% year-over-year to $3.12 billion, surpassing their Q3 guidance. Chewy's Autoship program saw a 13.6% increase in sales, reaching $2.61 billion, and active customers grew by nearly 5% to 21.2 million. The firm achieved a gross margin expansion of 50 basis points to 29.8% and a significant rise in adjusted EBITDA by 30% year-over-year to $181 million, with an adjusted EBITDA margin of 5.8%. Free cash flow generation was robust at $176 million, enabling a $55 million share repurchase. Chewy narrowed its full-year 2025 net sales outlook to between $12.58 billion and $12.6 billion, reflecting an 8% year-over-year growth, and adjusted its EBITDA margin outlook to 5.6% to 5.7%. The company continues to focus on expanding its health offerings, with Chewy Vet Care growing to 14 locations and the acquisition of Smart Equine expected to bolster its premium health segment.Chewy Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
49
Neutral
Cash Flow
58
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.60B | 11.86B | 11.15B | 10.12B | 8.97B |
| Gross Profit | 3.75B | 3.47B | 3.16B | 2.83B | 2.39B |
| EBITDA | 397.20M | 271.77M | 161.50M | 138.56M | -17.72M |
| Net Income | 222.80M | 392.74M | 39.58M | 49.90M | -75.21M |
Balance Sheet | |||||
| Total Assets | 3.59B | 3.01B | 3.19B | 2.52B | 2.09B |
| Cash, Cash Equivalents and Short-Term Investments | 878.80M | 596.66M | 1.13B | 678.59M | 603.08M |
| Total Debt | 556.80M | 502.40M | 527.79M | 471.82M | 410.17M |
| Total Liabilities | 3.10B | 2.75B | 2.68B | 2.36B | 2.07B |
| Stockholders Equity | 497.90M | 261.46M | 510.24M | 160.27M | 14.74M |
Cash Flow | |||||
| Free Cash Flow | 562.40M | 452.49M | 342.93M | 119.28M | 8.55M |
| Operating Cash Flow | 691.60M | 596.33M | 486.21M | 349.57M | 191.74M |
| Investing Cash Flow | -151.80M | 394.57M | -287.36M | -615.48M | -193.27M |
| Financing Cash Flow | -276.00M | -996.74M | 71.60M | -6.73M | 41.26M |
Chewy Technical Analysis
Neutral
27.52
Price Trends
24.52
Negative
26.33
Negative
31.30
Negative
Market Momentum
-1.06
Negative
48.57
Neutral
82.87
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 27.52 is above the 20-day moving average (MA) of 22.21, above the 50-day MA of 24.52, and below the 200-day MA of 31.30, indicating a neutral trend. The MACD of -1.06 indicates Negative momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 82.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHWY.
Chewy Risk Analysis
Chewy disclosed 51 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $9.39B | 19.64 | 16.35% | ― | 11.84% | 14.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $15.75B | 14.35 | 38.34% | 5.46% | 0.99% | 31.91% | |
55 Neutral | $4.10B | 5.56 | -52.40% | 4.16% | -1.40% | -4.34% | |
50 Neutral | $8.74B | 41.92 | 51.43% | ― | 6.24% | -41.25% | |
50 Neutral | $13.66B | 226.06 | 1.31% | 3.33% | 4.79% | -92.77% | |
48 Neutral | $862.27M | 93.37 | 0.79% | ― | -2.53% | ― |
* Consumer Cyclical Sector Average
CHWY
Chewy
22.54
-24.92
-52.51%
BBY
Best Buy Co
77.95
13.32
20.62%
GPC
Genuine Parts Company
98.70
-25.46
-20.51%
BBWI
Bath & Body Works
20.02
-5.78
-22.40%
WOOF
Petco Health and Wellness Company
3.01
-0.68
-18.43%
CART
Maplebear
39.80
-6.64
-14.30%
Chewy Corporate Events
Executive/Board ChangesLegal Proceedings
Chewy Reaches Settlement Agreement in Derivative Lawsuit
Neutral
Apr 28, 2026
On April 6, 2026, a Special Litigation Committee of Chewy’s board, the company and various BC Partners-affiliated entities and directors entered into a stipulation and settlement agreement with stockholder Eric Gilbert to resolve a derivativ...
Business Operations and StrategyStock Buyback
Chewy Expands Share Repurchase Authorization to Boost Returns
Positive
Apr 8, 2026
On April 7, 2026, Chewy, Inc.’s board of directors approved a $500 million increase to its existing share repurchase program for its Class A and Class B common stock, adding to the roughly $119.4 million of remaining authorization under the ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Chewy Finalizes CFO Succession, Reaffirms Profitability Targets
Positive
Feb 24, 2026
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 Bil...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.