Chewy (CHWY) AI Stock Analysis

• Market Cap: $17.03B
• Dividend Yield: N/A
• Average Volume (3M): 8.15M
• Price to Earnings (P/E): 44.8
• Beta (1Y): 1.22
• Revenue Growth: 7.64%
• EPS Growth: 369.79%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Specialty Retail
• EPS (TTM): 0.05
• Shares Outstanding: 195,511,440
• 10 Day Avg. Volume: 10,278,146
• 30 Day Avg. Volume: 8,151,906
• PEG Ratio: N/A
• Price to Book (P/B): 44.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.03
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 16.24
• 1Y Price Target: $46.76
• Price Target Upside: 16.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

• Rating: 77 Outperform
• Price Target: $47.00 ▲(17.50%Upside)

Chewy's overall stock score reflects strong financial performance and positive earnings call results. While the valuation suggests a premium price, the company's growth prospects and strategic initiatives, such as the Autoship program and expansion into Vet Care Clinics, support its market position. Technical analysis shows mixed signals, but the long-term trend remains positive.

Positive Factors

Earnings Growth

Analyst projects that above-industry revenue growth plus solid YoY EBITDA expansion could drive strong earnings growth of 25%, well above comps.

Online Market Penetration

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

Revenue Diversification

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

Negative Factors

Cost Management

Gross margin contracted slightly year-over-year, and SG&A expenses were higher than expected, leading to some investor disappointment.

Growth Slowdown Risk

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

Investor Expectations

Despite positive results and guidance, Chewy shares are down 10% due to unfulfilled investor expectations for an official FY’25 guide raise.

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 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 and improved profitability. The company has effectively managed costs and increased its gross profit margins. Although there are some liabilities on the balance sheet, overall financial metrics suggest robust performance and potential for future growth.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.10B	11.86B	11.15B	10.10B	8.89B	7.15B
Gross Profit	3.54B	3.47B	3.16B	2.83B	2.37B	1.82B
EBITDA	272.63M	268.21M	161.50M	138.56M	-17.72M	-54.80M
Net Income	388.24M	392.74M	39.58M	49.90M	-75.46M	-94.51M
Balance Sheet
Total Assets	3.06B	3.01B	3.19B	2.52B	2.09B	1.74B
Cash, Cash Equivalents and Short-Term Investments	616.40M	596.66M	1.13B	677.38M	603.08M	563.35M
Total Debt	500.20M	502.40M	527.79M	471.76M	410.17M	328.23M
Total Liabilities	2.68B	2.75B	2.68B	2.30B	2.07B	1.74B
Stockholders Equity	375.60M	261.46M	510.24M	213.96M	14.74M	-2.00M
Cash Flow
Free Cash Flow	448.56M	452.49M	342.93M	119.28M	8.55M	2.01M
Operating Cash Flow	600.79M	596.33M	486.21M	349.57M	191.74M	132.75M
Investing Cash Flow	-152.33M	394.57M	-287.36M	-615.48M	-193.27M	-123.69M
Financing Cash Flow	-966.67M	-996.74M	71.60M	-6.73M	41.27M	342.20M

Chewy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.00
• 50DMA: Negative
• 100DMA: Positive
• 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 40 is below the 20-day moving average (MA) of 42.30, below the 50-day MA of 41.97, and above the 200-day MA of 35.44, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 37.52 is Neutral, neither overbought nor oversold. The STOCH value of 15.97 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
CHWY	77 Outperform	$17.03B	44.80	76.24%	―	7.64%	369.79%
CART	77 Outperform	$12.74B	31.99	12.96%	―	11.34%	―
Sector *	67 Neutral	¥250.86B	13.17	6.48%	2.78%	5.05%	-11.96%
ETSY	64 Neutral	$5.60B	37.98	-39.97%	―	2.18%	-32.87%
TDUP	62 Neutral	$893.95M	―	-69.51%	―	-10.55%	9.27%
W	55 Neutral	$7.06B	―	17.86%	―	-0.89%	46.62%
WOOF	52 Neutral	$867.65M	―	-5.90%	―	-2.37%	95.07%

Chewy Corporate Events

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.

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.