CHEWY INC - CLASS A (CHWY) Stock Fundamental Analysis
NYSE:CHWY - New York Stock Exchange, Inc. - US16679L1098 - Common Stock - Currency: USD
Overall CHWY gets a fundamental rating of 5 out of 10. We evaluated CHWY against 120 industry peers in the Specialty Retail industry. CHWY has only an average score on both its financial health and profitability. CHWY is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHWY was profitable.
CHWY had a positive operating cash flow in the past year.
In multiple years CHWY reported negative net income over the last 5 years.
Each year in the past 5 years CHWY had a positive operating cash flow.
1.2 Ratios
CHWY has a Return On Assets of 13.03%. This is amongst the best in the industry. CHWY outperforms 86.67% of its industry peers.
CHWY has a better Return On Equity (150.21%) than 99.17% of its industry peers.
The Return On Invested Capital of CHWY (11.44%) is better than 78.33% 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
The Profit Margin of CHWY (3.31%) is better than 70.00% of its industry peers.
CHWY has a Operating Margin (0.95%) which is in line with its industry peers.
CHWY has a Gross Margin of 29.24%. This is in the lower half of the industry: CHWY underperforms 67.50% of its industry peers.
CHWY's Gross Margin has improved in the last couple of years.
| 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
CHWY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CHWY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CHWY has been increased compared to 5 years ago.
CHWY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 7.47 indicates that CHWY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.47, CHWY belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
CHWY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.47 |
ROIC/WACC1.18
WACC9.67%
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.
CHWY has a Current ratio of 0.75. This is amonst the worse of the industry: CHWY underperforms 87.50% of its industry peers.
A Quick Ratio of 0.37 indicates that CHWY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.37, CHWY is doing worse than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.67% over the past year.
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
CHWY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.03% yearly.
The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y150.36%
EPS Next 2Y84.63%
EPS Next 3Y93.16%
EPS Next 5Y54.03%
Revenue Next Year5.87%
Revenue Next 2Y6.42%
Revenue Next 3Y6.79%
Revenue Next 5Y6.66%
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 178.88, the valuation of CHWY can be described as expensive.
CHWY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CHWY to the average of the S&P500 Index (26.53), we can say CHWY is valued expensively.
Based on the Price/Forward Earnings ratio of 71.45, the valuation of CHWY can be described as expensive.
66.67% of the companies in the same industry are cheaper than CHWY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.27. CHWY is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 178.88 | ||
| Fwd PE | 71.45 |
4.2 Price Multiples
70.00% of the companies in the same industry are cheaper than CHWY, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CHWY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.65 | ||
| EV/EBITDA | 85.45 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CHWY's earnings are expected to grow with 93.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y84.63%
EPS Next 3Y93.16%
5. Dividend
5.1 Amount
No dividends for CHWY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.51
-1.7 (-3.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.62%
Inst Owner Change60.09%
Ins Owners3.04%
Ins Owner Change-41.45%
Market Cap19.30B
Analysts80
Price Target40.37 (-13.2%)
Short Float %7.84%
Short Ratio2.25
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)1.75%
PT rev (3m)4.15%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)17.01%
EPS NY rev (1m)-4.75%
EPS NY rev (3m)15.58%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 178.88 | ||
| Fwd PE | 71.45 | ||
| P/S | 1.63 | ||
| P/FCF | 42.65 | ||
| P/OCF | 32.37 | ||
| P/B | 73.82 | ||
| P/tB | 87.08 | ||
| EV/EBITDA | 85.45 |
EPS(TTM)0.26
EY0.56%
EPS(NY)0.65
Fwd EY1.4%
FCF(TTM)1.09
FCFY2.34%
OCF(TTM)1.44
OCFY3.09%
SpS28.58
BVpS0.63
TBVpS0.53
PEG (NY)1.19
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 | 7.47 |
F-Score8
WACC9.67%
ROIC/WACC1.18
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 Y150.36%
EPS Next 2Y84.63%
EPS Next 3Y93.16%
EPS Next 5Y54.03%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%14.91%
Revenue Next Year5.87%
Revenue Next 2Y6.42%
Revenue Next 3Y6.79%
Revenue Next 5Y6.66%
EBIT growth 1Y577.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year429.38%
EBIT Next 3Y99.12%
EBIT Next 5Y58.79%
FCF growth 1Y31.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.65%
OCF growth 3Y45.98%
OCF growth 5Y66.5%