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Chewy Inc CHWY

Morningstar Rating
$24.32 −0.55 (2.21%)
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Company Report

Chewy's Healthcare and Ads Businesses Should Drive Solid Margin Expansion as Pet Category Recovers

The pet care industry is quite attractive, with brand loyalty, sticky purchase habits, pet humanization, and limited cyclicality representing just a handful of alluring structural features in an $144 billion US market (American Pet Products Association). While a slew of players jockey for manufacturing and retail market share, Chewy's service-intensive subscription-driven platform looks poised to capture a disproportionate share of online sales, with the firm building a strong brand around customer service and perceived quality.

Price vs Fair Value

CHWY is trading at a 279% premium.
Price
$24.87
Fair Value
$11.00
Uncertainty
Very High
1-Star Price
$66.65
5-Star Price
$29.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

E-commerce penetration should continue to increase in the pet care category, favoring established players like Chewy.

Bears

Chewy may struggle to maintain growth in prescription and over-the-counter drug markets should veterinarians prove reluctant to fill scripts through its marketplace.

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News

Trading Information

Previous Close Price
$24.87
Day Range
$24.2325.46
52-Week Range
$14.6939.07
Bid/Ask
$24.30 / $24.34
Market Cap
$10.61 Bil
Volume/Avg
2.7 Mil / 12.1 Mil

Key Statistics

Price/Earnings (Normalized)
31.69
Price/Sales
0.96
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Chewy is the largest e-commerce pet care retailer in the US, generating $11.2 billion in 2023 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a stand-alone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
Small Growth
Total Number of Employees
18,100

Competitors

Valuation

Metric
CHWY
ETSY
EBAY
Price/Earnings (Normalized)
31.6924.6712.16
Price/Book Value
16.844.32
Price/Sales
0.963.052.76
Price/Cash Flow
23.2811.7110.42
Price/Earnings
CHWY
ETSY
EBAY

Financial Strength

Metric
CHWY
ETSY
EBAY
Quick Ratio
0.662.301.80
Current Ratio
1.072.491.99
Interest Coverage
9.4711.72
Quick Ratio
CHWY
ETSY
EBAY

Profitability

Metric
CHWY
ETSY
EBAY
Return on Assets (Normalized)
11.56%24.88%11.08%
Return on Equity (Normalized)
78.89%39.49%
Return on Invested Capital (Normalized)
30.80%34.38%16.62%
Return on Assets
CHWY
ETSY
EBAY
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