Chewy, Inc.
Chewy, Inc. Fundamental Analysis
Chewy, Inc. (CHWY) shows moderate financial fundamentals with a PE ratio of 52.15, profit margin of 1.64%, and ROE of 55.17%. The company generates $12.6B in annual revenue with moderate year-over-year growth of 6.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CHWY's fundamental strength across five key dimensions:
Efficiency Score
WeakCHWY struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHWY shows balanced valuation metrics.
Growth Score
ModerateCHWY shows steady but slowing expansion.
Financial Health Score
WeakCHWY carries high financial risk with limited liquidity.
Profitability Score
ModerateCHWY maintains healthy but balanced margins.
Key Financial Metrics
Is CHWY Expensive or Cheap?
P/E Ratio
CHWY trades at 52.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CHWY's PEG of 1.48 indicates fair valuation.
Price to Book
The market values Chewy, Inc. at 22.93 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.33 times EBITDA. This signals the market has high growth expectations.
How Well Does CHWY Make Money?
Net Profit Margin
For every $100 in sales, Chewy, Inc. keeps $1.64 as profit after all expenses.
Operating Margin
Core operations generate 1.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $55.17 in profit for every $100 of shareholder equity.
ROA
Chewy, Inc. generates $6.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chewy, Inc. generates limited operating cash flow of $636.94M, signaling weaker underlying cash strength.
Free Cash Flow
Chewy, Inc. produces free cash flow of $487.94M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.18 in free cash annually.
FCF Yield
CHWY converts 4.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
52.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
22.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.55
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How CHWY Stacks Against Its Sector Peers
| Metric | CHWY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 52.15 | 25.25 | Worse (Expensive) |
| ROE | 55.17% | 1170.00% | Weak |
| Net Margin | 1.64% | 742.00% | Weak |
| Debt/Equity | 1.11 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.85 | 9.19 | Weak Liquidity |
| ROA | 6.26% | -6467.00% (disorted) | Weak |
CHWY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chewy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
133.12%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
248.24%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
1119.47%
Industry Style: Cyclical, Growth, Discretionary
High Growth