CHEWY INC - CLASS A (CHWY) Stock Fundamental Analysis
NYSE:CHWY - New York Stock Exchange, Inc. - US16679L1098 - Common Stock - Currency: USD
Taking everything into account, CHWY scores 5 out of 10 in our fundamental rating. 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. CHWY has a correct valuation and a medium 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.
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 Return On Assets of 12.69%. This is amongst the best in the industry. CHWY outperforms 86.78% of its industry peers.
CHWY has a better Return On Equity (103.37%) than 98.35% of its industry peers.
CHWY's Return On Invested Capital of 11.14% is fine compared to the rest of the industry. CHWY outperforms 78.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.69% | ||
| ROE | 103.37% | ||
| ROIC | 11.14% |
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 (3.21%) than 70.25% of its industry peers.
CHWY has a Operating Margin of 1.03%. This is comparable to the rest of the industry: CHWY outperforms 43.80% of its industry peers.
CHWY has a Gross Margin of 29.24%. This is in the lower half of the industry: CHWY underperforms 67.77% of its industry peers.
CHWY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.03% | ||
| PM (TTM) | 3.21% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CHWY is still 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
CHWY has an Altman-Z score of 7.03. This indicates that CHWY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.03, CHWY belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
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 | 7.03 |
ROIC/WACC1.17
WACC9.48%
2.3 Liquidity
CHWY has a Current Ratio of 0.80. 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 0.80. This is amonst the worse of the industry: CHWY underperforms 86.78% of its industry peers.
A Quick Ratio of 0.42 indicates that CHWY may have some problems paying its short term obligations.
CHWY has a Quick ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
CHWY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 109.09%, which is quite impressive.
CHWY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.64%.
Measured over the past years, CHWY shows a quite strong growth in Revenue. The Revenue has been growing by 19.60% on average per year.
EPS 1Y (TTM)109.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%8.28%
3.2 Future
The Earnings Per Share is expected to grow by 54.03% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y147.15%
EPS Next 2Y79.08%
EPS Next 3Y93.74%
EPS Next 5Y54.03%
Revenue Next Year5.82%
Revenue Next 2Y6.57%
Revenue Next 3Y6.96%
Revenue Next 5Y7%
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
CHWY is valuated quite expensively with a Price/Earnings ratio of 89.76.
CHWY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CHWY to the average of the S&P500 Index (27.45), we can say CHWY is valued expensively.
With a Price/Forward Earnings ratio of 49.52, CHWY can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as CHWY.
CHWY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.76 | ||
| Fwd PE | 49.52 |
4.2 Price Multiples
69.42% of the companies in the same industry are cheaper than CHWY, based on the Enterprise Value to EBITDA ratio.
CHWY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHWY is cheaper than 60.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.2 | ||
| EV/EBITDA | 67.89 |
4.3 Compensation for Growth
CHWY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CHWY's earnings are expected to grow with 93.74% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y79.08%
EPS Next 3Y93.74%
5. Dividend
5.1 Amount
CHWY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.29
+0.31 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.86%
Inst Owner Change60.09%
Ins Owners3.09%
Ins Owner Change-3.94%
Market Cap17.13B
Analysts80
Price Target44.78 (8.45%)
Short Float %8.21%
Short Ratio2.09
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)1
Avg EPS beat(2)35.67%
Min EPS beat(2)-5.13%
Max EPS beat(2)76.47%
EPS beat(4)2
Avg EPS beat(4)58.33%
Min EPS beat(4)-88.16%
Max EPS beat(4)250.14%
EPS beat(8)5
Avg EPS beat(8)109.93%
EPS beat(12)9
Avg EPS beat(12)122.32%
EPS beat(16)10
Avg EPS beat(16)80.34%
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.28%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)2
Avg Revenue beat(16)-1.46%
PT rev (1m)12.85%
PT rev (3m)15.51%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)27.87%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)14.1%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.76 | ||
| Fwd PE | 49.52 | ||
| P/S | 1.42 | ||
| P/FCF | 38.2 | ||
| P/OCF | 28.52 | ||
| P/B | 45.62 | ||
| P/tB | 50.97 | ||
| EV/EBITDA | 67.89 |
EPS(TTM)0.46
EY1.11%
EPS(NY)0.83
Fwd EY2.02%
FCF(TTM)1.08
FCFY2.62%
OCF(TTM)1.45
OCFY3.51%
SpS29.16
BVpS0.91
TBVpS0.81
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.69% | ||
| ROE | 103.37% | ||
| ROCE | 13.57% | ||
| ROIC | 11.14% | ||
| ROICexc | 33.74% | ||
| ROICexgc | 38.77% | ||
| OM | 1.03% | ||
| PM (TTM) | 3.21% | ||
| GM | 29.24% | ||
| FCFM | 3.71% |
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-Score7
Asset Turnover3.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 130.61% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 248.85% | ||
| Profit Quality | 115.54% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 7.03 |
F-Score7
WACC9.48%
ROIC/WACC1.17
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)109.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y147.15%
EPS Next 2Y79.08%
EPS Next 3Y93.74%
EPS Next 5Y54.03%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y10.08%
Revenue growth 5Y19.6%
Sales Q2Q%8.28%
Revenue Next Year5.82%
Revenue Next 2Y6.57%
Revenue Next 3Y6.96%
Revenue Next 5Y7%
EBIT growth 1Y636.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year429.38%
EBIT Next 3Y99.12%
EBIT Next 5Y58.74%
FCF growth 1Y87.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.56%
OCF growth 3Y45.98%
OCF growth 5Y66.5%