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Chewy (CHWY)
NYSE:CHWY
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Chewy (CHWY) AI Stock Analysis

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CHWY

Chewy

(NYSE:CHWY)

Rating:72Outperform
Price Target:
$44.00
▲(9.62% Upside)
Chewy's strong financial performance and positive earnings call results are the primary drivers of its stock score. However, high valuation and technical indicators suggest caution. The company's strategic initiatives and customer growth provide a positive outlook, but potential risks from liabilities and market conditions should be monitored.
Positive Factors
Market Share
Chewy-specific data accelerated as the company continues to consolidate share from traditionally offline pet specialty retailers.
Revenue Growth
Chewy Inc is likely to increase its FY25 revenue guidance due to favorable trends and underestimated potential for growth.
Veterinary and Pharmacy Services
Chewy Vet Care rollout is going well, with positive reviews and exceeding internal expectations for new customer acquisition.
Negative Factors
Growth Slowdown Risk
There is a modest risk of a slowdown in growth in 4Q on tougher comps.
Maturity Curve
The dominant thesis is that Chewy has reached the upper plateau of its maturity curve, which keeps active customer estimates at lower levels.

Chewy (CHWY) vs. SPDR S&P 500 ETF (SPY)

Chewy Business Overview & Revenue Model

Company DescriptionChewy, 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 MoneyChewy generates revenue primarily through the sale of pet products on its e-commerce platform. The company's key revenue streams include direct sales of pet food, supplies, and accessories, as well as subscription services like Autoship, which allows customers to schedule regular deliveries at discounted prices. Additionally, Chewy has developed a growing presence in pet health services, including veterinary telehealth consultations and prescription medications, further diversifying its revenue base. Significant partnerships with major pet product manufacturers and brands enhance its product offerings and attract customers. Chewy's extensive customer loyalty program and emphasis on customer satisfaction also contribute to repeat purchases, driving consistent revenue growth.

Chewy Key Performance Indicators (KPIs)

Any
Any
Active Customers
Active Customers
Indicates the total number of customers making purchases, reflecting the company's market reach and customer base growth.
Chart InsightsChewy's active customer base experienced a plateau from 2021 to 2023, reflecting market saturation or competitive pressures. However, recent quarters show a resurgence in growth, indicating successful customer retention strategies or new customer acquisition efforts. This turnaround could signal effective marketing initiatives or enhanced product offerings, positioning Chewy for renewed expansion in the pet e-commerce market.
Data provided by:Main Street Data

Chewy Earnings Call Summary

Earnings Call Date:Jun 11, 2025
(Q1-2025)
|
% Change Since: -12.34%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in revenue growth, customer base expansion, and profitability metrics, balanced by upcoming leadership changes and expected seasonal profitability challenges.
Q1-2025 Updates
Positive Updates
Strong Net Sales Growth
Q1 net sales exceeded the high end of guidance, increasing by over 8% to $3.12 billion.
Auto-ship Subscription Success
First quarter auto-ship customer sales of $2.56 billion represented approximately 82% of Q1 net sales, reaching a record high for the company, with a growth of nearly 15%.
Active Customer Growth
The company ended the quarter with 20.8 million active customers, reflecting 3.8% year-over-year growth.
Adjusted EBITDA Improvement
Generated $192.7 million of adjusted EBITDA in the quarter, representing a 6.2% adjusted EBITDA margin and a year-over-year increase of approximately 50 basis points.
Chewy Plus Program Launch
Successfully transitioned the Chewy Plus membership program out of beta, aiming to drive stronger customer loyalty.
Share Repurchase Program
Deployed $23.2 million towards share repurchases in the quarter.
Negative Updates
CFO Transition
David Reeder, CFO, announced his departure to pursue a CEO role in the semiconductor industry.
Modest Sequential Declines Expected
Adjusted EBITDA margin is expected to experience modest sequential declines throughout the year due to typical seasonality and the timing of investments.
Minimal Tariff Impact Guidance
Guidance includes minimal expected impact from tariffs, although this remains a potential risk.
Company Guidance
During Chewy, Inc.'s first quarter fiscal 2025 earnings call, the company reported strong financial performance, achieving net sales of $3.12 billion, an 8.3% increase over the prior year, surpassing the high end of their guidance range. The company also reported a gross margin of 29.6% and an adjusted EBITDA of $192.7 million, representing a 6.2% margin and a year-over-year increase of 50 basis points. Chewy ended the quarter with 20.8 million active customers, reflecting a 3.8% year-over-year growth. Notably, their auto-ship program contributed $2.56 billion in sales, accounting for 82% of total net sales and marking a 14.8% increase. Additionally, the company highlighted a 12.3% growth in hard goods. For fiscal year 2025, Chewy maintained its net sales outlook of $12.3 billion to $12.45 billion, with anticipated adjusted EBITDA margin expansion of 75 basis points. The call also announced Chewy's plans to continue expanding its Chewy Vet Care practices and progress in its sponsored ads business.

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
85
Very Positive
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
75
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.86B11.15B10.10B8.89B7.15B
Gross Profit3.47B3.16B2.83B2.37B1.82B
EBITDA268.21M161.50M138.56M-17.72M-54.80M
Net Income392.74M39.58M49.90M-75.46M-94.51M
Balance Sheet
Total Assets3.01B3.19B2.52B2.09B1.74B
Cash, Cash Equivalents and Short-Term Investments596.66M1.13B678.59M603.08M563.35M
Total Debt502.40M527.79M471.82M410.17M328.23M
Total Liabilities2.75B2.68B2.36B2.07B1.74B
Stockholders Equity261.46M510.24M160.27M14.74M-2.00M
Cash Flow
Free Cash Flow452.49M342.93M119.28M8.55M2.01M
Operating Cash Flow596.33M486.21M349.57M191.74M132.75M
Investing Cash Flow394.57M-287.36M-615.48M-193.27M-123.69M
Financing Cash Flow-996.74M71.60M-6.73M41.27M342.20M

Chewy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price40.14
Price Trends
50DMA
39.18
Positive
100DMA
39.13
Positive
200DMA
36.86
Positive
Market Momentum
MACD
0.53
Negative
RSI
59.11
Neutral
STOCH
81.73
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 40.14 is above the 20-day moving average (MA) of 37.40, above the 50-day MA of 39.18, and above the 200-day MA of 36.86, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$12.25B26.2714.54%10.47%
72
Outperform
$17.00B45.8476.24%7.64%369.79%
65
Neutral
$6.29B51.95-39.97%2.38%-38.88%
63
Neutral
$1.30B-58.93%-10.39%14.92%
63
Neutral
AU$3.12B29.0024.23%4.44%1.54%-28.82%
57
Neutral
$10.24B17.86%0.87%54.67%
51
Neutral
$962.51M-5.90%-2.37%95.07%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CHWY
Chewy
40.14
14.33
55.52%
W
Wayfair
76.37
31.89
71.70%
ETSY
Etsy
62.92
7.76
14.07%
WOOF
Petco Health and Wellness Company
3.26
0.21
6.89%
TDUP
thredUP
11.16
10.31
1212.94%
CART
Maplebear
43.37
7.02
19.31%

Chewy Corporate Events

Executive/Board ChangesShareholder Meetings
Chewy’s Annual Stockholders Meeting Highlights Key Decisions
Neutral
Jul 15, 2025

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.

Executive/Board Changes
Chewy Appoints Interim CFO After Reeder’s Resignation
Neutral
Jul 9, 2025

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.

Private Placements and FinancingStock Buyback
Chewy Completes Share Sale and Repurchase Agreements
Neutral
Jun 25, 2025

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.

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.Date of analysis: Aug 14, 2025