CHEWY INC - CLASS A (CHWY) Stock Fundamental Analysis
NYSE:CHWY - New York Stock Exchange, Inc. - US16679L1098 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CHWY. CHWY was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of CHWY get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, CHWY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CHWY was profitable.
In the past year CHWY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CHWY reported negative net income in multiple years.
Each year in the past 5 years CHWY had a positive operating cash flow.
1.2 Ratios
CHWY has a better Return On Assets (13.03%) than 87.60% of its industry peers.
The Return On Equity of CHWY (150.21%) is better than 99.17% of its industry peers.
CHWY's Return On Invested Capital of 11.44% is fine compared to the rest of the industry. CHWY outperforms 78.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 150.21% | ||
| ROIC | 11.44% |
ROA(3y)5.41%
ROA(5y)1.48%
ROE(3y)60.29%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CHWY has a better Profit Margin (3.31%) than 71.07% of its industry peers.
CHWY's Operating Margin of 0.95% is in line compared to the rest of the industry. CHWY outperforms 42.98% of its industry peers.
CHWY has a Gross Margin of 29.24%. This is in the lower half of the industry: CHWY underperforms 66.94% of its industry peers.
In the last couple of years the Gross Margin of CHWY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.95% | ||
| PM (TTM) | 3.31% | ||
| GM | 29.24% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.07%
GM growth 5Y4.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHWY is creating some value.
Compared to 1 year ago, CHWY has less shares outstanding
Compared to 5 years ago, CHWY has more shares outstanding
There is no outstanding debt for CHWY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CHWY has an Altman-Z score of 6.38. This indicates that CHWY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CHWY (6.38) is better than 93.39% of its industry peers.
There is no outstanding debt for CHWY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.38 |
ROIC/WACC1.26
WACC9.11%
2.3 Liquidity
CHWY has a Current Ratio of 0.75. This is a bad value and indicates that CHWY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CHWY (0.75) is worse than 87.60% of its industry peers.
A Quick Ratio of 0.37 indicates that CHWY may have some problems paying its short term obligations.
CHWY's Quick ratio of 0.37 is on the low side compared to the rest of the industry. CHWY is outperformed by 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
CHWY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.67%, which is quite impressive.
CHWY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.40%.
The Revenue has been growing by 19.60% on average over the past years. This is quite good.
EPS 1Y (TTM)116.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-54.55%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%14.91%
3.2 Future
Based on estimates for the next years, CHWY will show a very strong growth in Earnings Per Share. The EPS will grow by 54.03% on average per year.
Based on estimates for the next years, CHWY will show a small growth in Revenue. The Revenue will grow by 6.88% on average per year.
EPS Next Y162.85%
EPS Next 2Y83.84%
EPS Next 3Y64.81%
EPS Next 5Y54.03%
Revenue Next Year6.04%
Revenue Next 2Y6.48%
Revenue Next 3Y6.67%
Revenue Next 5Y6.88%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 139.88, the valuation of CHWY can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CHWY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.75. CHWY is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 53.22, which means the current valuation is very expensive for CHWY.
Based on the Price/Forward Earnings ratio, CHWY is valued a bit more expensive than the industry average as 60.33% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.49. CHWY is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 139.88 | ||
| Fwd PE | 53.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHWY indicates a slightly more expensive valuation: CHWY is more expensive than 67.77% of the companies listed in the same industry.
CHWY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.25 | ||
| EV/EBITDA | 63.6 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CHWY's earnings are expected to grow with 64.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y83.84%
EPS Next 3Y64.81%
5. Dividend
5.1 Amount
CHWY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.37
-1.13 (-3.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.62%
Inst Owner Change0.87%
Ins Owners3.04%
Ins Owner Change-8.78%
Market Cap15.04B
Analysts80
Price Target39.68 (9.1%)
Short Float %6.73%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-46.64%
Min EPS beat(2)-88.16%
Max EPS beat(2)-5.13%
EPS beat(4)2
Avg EPS beat(4)72.88%
Min EPS beat(4)-88.16%
Max EPS beat(4)250.14%
EPS beat(8)5
Avg EPS beat(8)128.82%
EPS beat(12)9
Avg EPS beat(12)126.66%
EPS beat(16)10
Avg EPS beat(16)99.39%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.18%
Revenue beat(12)2
Avg Revenue beat(12)-1.1%
Revenue beat(16)2
Avg Revenue beat(16)-1.51%
PT rev (1m)2.35%
PT rev (3m)9.14%
EPS NQ rev (1m)3.71%
EPS NQ rev (3m)11.44%
EPS NY rev (1m)15.1%
EPS NY rev (3m)19.88%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 139.88 | ||
| Fwd PE | 53.22 | ||
| P/S | 1.27 | ||
| P/FCF | 33.25 | ||
| P/OCF | 25.23 | ||
| P/B | 57.54 | ||
| P/tB | 67.88 | ||
| EV/EBITDA | 63.6 |
EPS(TTM)0.26
EY0.71%
EPS(NY)0.68
Fwd EY1.88%
FCF(TTM)1.09
FCFY3.01%
OCF(TTM)1.44
OCFY3.96%
SpS28.68
BVpS0.63
TBVpS0.54
PEG (NY)0.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 150.21% | ||
| ROCE | 13.94% | ||
| ROIC | 11.44% | ||
| ROICexc | 43.76% | ||
| ROICexgc | 53.93% | ||
| OM | 0.95% | ||
| PM (TTM) | 3.31% | ||
| GM | 29.24% | ||
| FCFM | 3.81% |
ROA(3y)5.41%
ROA(5y)1.48%
ROE(3y)60.29%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.07%
GM growth 5Y4.37%
F-Score8
Asset Turnover3.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 125.55% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 262.53% | ||
| Profit Quality | 115.22% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 6.38 |
F-Score8
WACC9.11%
ROIC/WACC1.26
Cap/Depr(3y)177.55%
Cap/Depr(5y)250.04%
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.76%
Profit Quality(3y)408.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)116.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-54.55%
EPS Next Y162.85%
EPS Next 2Y83.84%
EPS Next 3Y64.81%
EPS Next 5Y54.03%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%14.91%
Revenue Next Year6.04%
Revenue Next 2Y6.48%
Revenue Next 3Y6.67%
Revenue Next 5Y6.88%
EBIT growth 1Y577.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year439.59%
EBIT Next 3Y99.43%
EBIT Next 5Y59.31%
FCF growth 1Y31.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.65%
OCF growth 3Y45.98%
OCF growth 5Y66.5%