Chewy Inc Stock Review and Financial Insights

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Chewy Inc has seen significant growth since its IPO in 2019, with revenue increasing from $3.6 billion to $8.2 billion in 2020.

As a pet owner myself, I can attest to the company's strong brand loyalty and customer retention rates, with 75% of customers repurchasing from Chewy within 12 months.

Chewy's e-commerce model has disrupted the traditional pet supply industry, with a focus on convenience, competitive pricing, and exceptional customer service.

In 2020, Chewy's active customer base grew by 44% year-over-year, demonstrating the company's ability to attract and retain a large and loyal customer base.

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Financial Performance

Chewy Inc's financial performance has been a mixed bag, but there are some encouraging signs.

The company's third-quarter adjusted EPS was $0.20, a 33.3% year-over-year increase compared to the consensus of $0.08.

Chewy's Q3 performance built on the momentum from Q2, with the company raising its annual outlook.

However, Chewy's stock slipped 2.5% on Wednesday after the company missed profit forecasts and saw a decline in active customers.

Despite this, Chewy's net sales for the third quarter surpassed the high end of its guidance range.

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Pet Store Growth Play

Close-up of colorful rainbow candy twists with vivid hues and intricate patterns.
Credit: pexels.com, Close-up of colorful rainbow candy twists with vivid hues and intricate patterns.

Chewy Inc. is a top pet store growth play, with a strong third-quarter performance. They reported revenue of $2.9 billion, a 4.8% year-over-year increase.

Their free cash flow was $152 million, showing a significant 218% year-over-year growth. This is a clear indication of the company's financial stability and potential for future growth.

Chewy's transactions per customer grew 4% year-over-year, driving organic revenue growth. This shows that the company is not only growing in terms of sales, but also in terms of customer engagement and loyalty.

The pet industry is a growing market, and Chewy is well-positioned to take advantage of it. Their value proposition, as stated by CEO Sumit Singh, is resonating with customers and driving growth.

Chewy's third-quarter adjusted earnings per share (EPS) was $0.20, up 33.3% year-over-year. This exceeds the consensus estimate of $0.08, demonstrating the company's strong financial performance.

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Revenue vs Earnings

Let's take a closer look at the revenue and earnings of CHWY. As of 10/10/2025, the trailing total returns, which may include dividends or other distributions, are a key metric to consider.

Credit: youtube.com, Revenue vs. Gross Income/Profit/Earnings vs. Net Income/Profit/Earnings (Bottom Line) in One Minute

CHWY's revenue is likely to be a significant driver of its earnings, but unfortunately, we don't have direct access to its revenue figures in this data.

However, we can look at the company's cash flow situation to get a sense of its financial health. According to the balance sheet and cash flow data, CHWY has a total cash of $593M as of the most recent quarter.

This cash position can be a valuable resource for the company to invest in growth initiatives or pay off debt. However, it's worth noting that CHWY's total debt/equity ratio is quite high at 135.78% as of the most recent quarter.

Here's a summary of CHWY's cash flow metrics:

  • Total Cash (mrq): $593M
  • Total Debt/Equity (mrq): 135.78%
  • Levered Free Cash Flow (ttm): $383.18M

Valuation and Profitability

Chewy Inc's valuation metrics paint a picture of a high-growth company, with a market cap of $16.28B and an enterprise value of $16.18B.

The company's trailing P/E ratio is a staggering 109.03, indicating that investors are willing to pay a premium for its shares. In contrast, the forward P/E ratio is a more modest 29.07, suggesting that investors expect the company's earnings to grow significantly in the coming years.

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Here are some key valuation metrics for Chewy Inc:

In terms of profitability, Chewy Inc has a strong track record, with a profit margin of 1.22% and a return on assets (ROA) of 3.27%. The company's return on equity (ROE) is even more impressive, at 34.48%, indicating that it generates a significant amount of earnings from shareholder equity.

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Strong FCF Keeps It a Top Pick

Chewy's strong FCF is a major reason it remains a top pick among investors.

Chewy's shares were up 4.5% on Monday, with the company's stock price on pace for its largest percent increase since November 20.

The company's ability to generate strong free cash flow (FCF) is a key factor in its success.

Chewy's third-quarter adjusted EPS was $0.20, a 33.3% year-over-year increase, beating the consensus estimate of $0.08.

This impressive performance is a testament to Chewy's strong execution and ability to deliver results.

Earnings Per Share

Earnings Per Share is a crucial metric that helps investors understand a company's profitability. A higher EPS indicates a more profitable company.

Credit: youtube.com, What Is EPS In Stocks? | Earnings Per Share Explained

Chewy Inc.'s Q3 adjusted EPS was $0.20, up 33.3% year-over-year, which is a significant increase. This growth is likely due to the company's strong performance in the pet supplies market.

Diluted EPS is another important metric that shows a company's profitability per share. Chewy Inc.'s diluted EPS (ttm) is $0.36.

Here's a comparison of Chewy Inc.'s EPS metrics:

The increase in EPS is a positive sign for investors, indicating a more profitable company.

Valuation

Valuation is a critical aspect of understanding a company's financial health.

The market cap of a company can be a good indicator of its size and value, with a market cap of 16.28B giving us an idea of its overall worth.

A company's enterprise value, which includes debt and cash, can also provide insight into its financial situation, with an enterprise value of 16.18B.

The P/E ratio, or price to earnings ratio, can help us understand how much investors are willing to pay for each dollar of a company's earnings, with a trailing P/E of 109.03 and a forward P/E of 29.07.

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The PEG ratio, which takes into account the expected growth rate of a company, can help us understand whether a company's valuation is reasonable, with a PEG ratio of 1.51.

Here are some key valuation metrics for a few companies:

By looking at these valuation metrics, we can get a better sense of how companies are valued and whether their valuations are reasonable.

Profitability

Profitability is a key aspect of a company's financial health, and it's essential to understand how it's measured.

Return on Assets (ROA) is one such metric, and it measures a company's net income divided by its total assets. According to Chewy's Q3 performance, their ROA is 16.22%, which is significantly higher than their peers eBay and Etsy.

Here's a table comparing the ROA of these three companies:

Another important metric is Return on Equity (ROE), which measures a company's net income divided by its shareholder equity. Chewy's ROE is an impressive 142.46%, indicating that they're generating a significant amount of profit from their shareholder equity.

In addition to these metrics, we can also look at a company's profit margin, which is a measure of their net income as a percentage of their revenue. Chewy's profit margin is 1.22%, which is relatively low compared to their peers.

Price Forms Wedge at Resistance

A Tape Measure on a Table Surrounded with Assorted Chewy Candies and Cookies
Credit: pexels.com, A Tape Measure on a Table Surrounded with Assorted Chewy Candies and Cookies

Chewy's stock price has delivered a strong 145% jump in the past seven months, from a low of $14.7 to $36.

This impressive return was better than most companies in the United States.

Financial Highlights

Chewy Inc has a significant amount of cash on hand, with a total of $593 million as of the most recent quarter.

This cash reserve is substantial, but it's worth noting that the company's debt-to-equity ratio is a bit high, standing at 135.78% as of the most recent quarter.

The company's ability to generate cash flow is also noteworthy, with a levered free cash flow of $383.18 million over the trailing 12 months.

Here's a breakdown of Chewy Inc's key financial metrics:

  • Total Cash (mrq): $593 million
  • Total Debt/Equity (mrq): 135.78%
  • Levered Free Cash Flow (ttm): $383.18 million

Research and Analysis

Chewy Inc stock has experienced significant growth in recent years, driven by its Autoship subscription program, which now constitutes over 80% of total revenue. This program has been a key factor in the company's strong year-over-year sales growth.

Credit: youtube.com, Chewy ($CHWY) Stock Analysis: Buy or Sell? Growth Insights

The company has shown impressive sales growth, with $11.9 billion in fiscal 2024 sales across pet food, treats, hard goods, and pharmacy categories. This is a testament to the company's ability to adapt to changing market trends and customer needs.

Chewy is the largest e-commerce petcare retailer in the US, with a strong presence in the market. The company has a large customer base and a wide range of products available for purchase.

Here are some key financial metrics for Chewy Inc:

Chewy's financial performance has been impressive, with a 33.3% year-over-year increase in adjusted EPS in Q3, beating consensus estimates. This momentum has led the company to raise its annual outlook, demonstrating its continued growth and success.

Company News and Updates

Chewy Inc. has announced a public offering, making its stock available to a wider range of investors. This move is a significant step in the company's growth strategy.

The company's Autoship subscription program is driving significant growth, constituting over 80% of total revenue. This is a testament to the program's effectiveness in retaining customers and generating sales.

Chewy's strong year-over-year sales growth is a positive indicator of the company's financial health.

Recent News: ChwY

Assorted Chewy Candies in a Container Beside a Pumpkin
Credit: pexels.com, Assorted Chewy Candies in a Container Beside a Pumpkin

Chewy, the largest e-commerce petcare retailer in the US, has been experiencing significant growth. This growth is driven by its Autoship subscription program, which now constitutes over 80% of total revenue.

Chewy was founded in 2011 and was acquired by PetSmart in 2017. It went public in 2019 and has continued to operate as an independent business.

The company has shown strong year-over-year sales growth, with $11.9 billion in fiscal 2024 sales across pet food, treats, hard goods, and pharmacy categories.

Chewy generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods like crates, leashes, and bowls. It operates almost entirely in the U.S., but has expanded shipping to some parts of Canada.

Here's a breakdown of Chewy's sales categories:

Chewy's third-quarter adjusted EPS was $0.20, up 33.3% year-over-year, compared to the consensus of $0.08.

Investor Sells $500M

A major investor is selling off a significant portion of their Chewy stock. They're offloading a whopping half a billion dollars in shares.

Adorable guinea pig peeking over a food bowl inside a cage. Perfect for pet care themes.
Credit: pexels.com, Adorable guinea pig peeking over a food bowl inside a cage. Perfect for pet care themes.

This move is connected to Chewy's biggest shareholder, and it's a substantial amount of money. The investor is clearly making a strategic decision about their investments.

Chewy is an online pet supplies retailer, and it's been performing well in the market. This sale is a significant development for the company and its investors.

Retailer Loses Active Customers

Chewy, the online pet supplies retailer, has seen a decline in active customers, leading to a 2.5% drop in its shares.

This decline in active customers is a significant concern for the company, as it directly impacts sales and revenue.

Chewy's struggle to retain customers is a common challenge many businesses face, and it requires a thoughtful approach to address.

The company's inability to keep customers active has resulted in missed profit forecasts and increased costs, further exacerbating the issue.

To stay competitive, businesses need to focus on providing excellent customer service, engaging with customers, and continuously improving their products and services.

Chewy's efforts to revamp its customer engagement strategy may help, but it's a long-term process that requires patience and dedication.

Pet Supplies Retailer Posts Strong Q3 Results, Raises Annual Outlook

Credit: youtube.com, Chewy stock rises as pet sales boom

Chewy Inc. reported a third-quarter adjusted EPS of $0.20, up 33.3% year-over-year, compared to the consensus of $0.08.

The company's revenue of $2.9B, a 4.8% Y/Y increase, shows a strong performance in the pet supplies market.

Chewy's Q3 results have built on the momentum from Q2, with the company raising its annual outlook.

The company's free cash flow of $152M, a 218% Y/Y growth, is a significant improvement from previous quarters.

Transactions per customer grew 4% Y/OY, driving organic revenue growth and contributing to Chewy's success.

Chewy's strong Q3 results have led to a rating upgrade, with the company now being recommended as a "buy" due to its potential for future growth.

Historical Data

Chewy Inc Registered Shs -A- has had a dividend of 0.00 USD since 2024.

The dividend has remained the same for the past five years, with no dividend paid out in 2024, 2023, 2022, 2021, or 2020.

The currency for the dividend has been USD since 2019.

Historical prices for Chewy Inc Registered Shs -A- are available for the years 2024, 2023, 2022, 2021, 2020, 2019, 2018, and 2016.

Here's a summary of the dividend yield for each year:

Comparison and Estimates

Credit: youtube.com, 1 Reason Why I Like Chewy Stock Right Now | CHWY Stock Analysis

As of the current year, Chewy Inc's earnings estimates are based on 22 analyst forecasts, with an average estimate of $0.779 USD. This is a significant increase from the year ago average of $0.092 USD.

The number of analysts providing revenue estimates for Chewy Inc has also increased, with 25 analysts providing estimates for the current year. The average revenue estimate for the current year is $12,353 USD, which is a substantial increase from the next year's average estimate of $14,656 USD.

Here's a summary of the earnings and revenue estimates for Chewy Inc:

Estimates in USD

Estimates in USD are a crucial aspect of understanding a company's financial health and future prospects. Analysts provide estimates for a company's earnings and revenue, which can be found in the "Estimates in USD" section of a company's financial reports.

The number of analysts providing estimates can vary from quarter to quarter. For example, in the current quarter ending 03/31/25, there are no analysts providing estimates, while in the current year ending 01/31/26, there are 22 analysts providing estimates.

Close-up of various snacks and Yan Yan chocolate sticks in a convenience store setting.
Credit: pexels.com, Close-up of various snacks and Yan Yan chocolate sticks in a convenience store setting.

The average estimate for a company's earnings and revenue can also change over time. In the current year ending 01/31/26, the average estimate for Chewy's earnings is $0.779 USD, while in the next year ending 01/31/28, the average estimate is $0.782 USD.

Here is a summary of the average estimates for Chewy's earnings and revenue:

The number of analysts providing estimates and the average estimates can give us an idea of a company's financial health and future prospects.

Compare to: Chwy

If you're looking to analyze similar companies to Chewy, you can do so using key performance metrics. This will help you understand how Chewy stacks up against its competitors.

One way to compare Chewy to other companies is to look at its performance metrics. According to the article, Chewy is the largest e-commerce petcare retailer in the US, generating $11.9 billion in fiscal 2024 sales across pet food, treats, hard goods, and pharmacy categories.

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You can also compare Chewy to other companies by selecting up to 4 stocks to analyze side by side. This will give you a clear picture of how each company is performing in terms of key metrics.

Here are some key statistics that can help you compare Chewy to other companies:

Keep in mind that Chewy has expanded shipping to some parts of Canada, but it currently operates almost entirely in the U.S. This is important to consider when comparing Chewy to other companies that may have a broader geographic reach.

By analyzing Chewy's performance metrics and comparing it to other companies, you can get a better sense of how it stacks up in the market.

Frequently Asked Questions

Who owns the most Chewy stock?

According to publicly available information, Vanguard owns the largest stake in Chewy (CHWY). This significant ownership structure may influence the company's direction and decision-making processes.

Alan Donnelly

Writer

Alan Donnelly is a seasoned writer with a unique voice and perspective. With a keen interest in finance and economics, Alan has established himself as a go-to expert in the field of derivatives, particularly in the realm of interest rate derivatives. Through his in-depth research and analysis, Alan has crafted engaging articles that break down complex financial concepts into accessible and informative content.

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