One-glance verdict
Undervalued
$51.47 our estimate vs market $20.57
Wall Street consensus: $31.05 (-39.7% lower than our fair-value estimate)
60% below our estimate, below the bear case
Fundamentals snapshot
Chewy, Inc.
CHWY · NYQ · Consumer Cyclical · Internet Retail
Current price
$20.57
52-week range
$17.40 - $43.50
Market cap
$8.42B
Balance sheet
Healthy
55.28x Strong cushion
Net debt $3.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 1.9% last year.
- Reward Returns 63.8% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 4/10 years.
What this company does
Chewy, Inc.
Chewy is an online pet store that sells food, supplies, and medicine directly to pet owners. A large part of its business comes from its "Autoship" subscription program, creating strong recurring revenue (sales that are predictable because customers are signed up to buy repeatedly). This is important because a steady stream of sales helps the company plan for the future and manage its business more reliably.
How the company got here
Chewy was started in 2011 by Ryan Cohen and Michael Day, who wanted to create a large online store for pet products with a strong focus on great customer service. The company grew very quickly and was bought by the retail chain PetSmart in 2017 for $3.35 billion, which at the time was the biggest sale of an e-commerce company. Chewy became a public company in 2019, meaning its shares are now traded on the stock market. Since then, it has continued to grow by adding more products and services, like pet pharmacy items and online vet consultations.
What it actually does
Chewy is an online-only store for pet parents in the United States. Through its website and mobile app, the company sells thousands of products for a wide variety of animals, including dogs, cats, fish, birds, and reptiles. You can find items like pet food, treats, toys, beds, and even prescription medications. A key feature is their Autoship program, which lets customers set up automatic, repeating deliveries of essential supplies so they never run out.
Online Retail
The main way Chewy makes money is by selling pet products directly to customers online. This includes food, treats, toys, and supplies from well-known brands as well as Chewy's own private label brands, like American Journey and Tylee's. A very large portion of these sales, often more than two-thirds, comes from its Autoship subscription program, where customers sign up for recurring deliveries of items they use regularly. This creates a steady and predictable stream of revenue (money the company earns from sales) for the business.
Chewy Health
This is a smaller but rapidly growing part of the company focused on pet healthcare. Through Chewy Health, customers can buy prescription medications from an online pharmacy, get pet insurance, and even have online video calls with veterinarians through a service called "Connect with a Vet". The company is also opening its own physical veterinary clinics, called Chewy Vet Care, to offer services like routine check-ups and surgeries. This segment helps Chewy become a more complete resource for pet owners' needs.
What management is betting on now
Chewy's leadership is focused on expanding its healthcare offerings to become a complete pet care partner. This includes growing its online pharmacy, offering more insurance plans, and opening more of its own veterinary clinics. The company is also working to increase the sales of its own private brands, which can be more profitable, and is starting to expand its business into international markets like Canada. By combining online shopping convenience with a growing range of health services, Chewy aims to build deeper, long-term relationships with pet owners.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$91.48M
FY2025 Q3
$151.77M
FY2025 Q4
$156.60M
FY2026 Q1
$48.70M
FY2026 Q2
$105.90M
FY2026 Q3
$175.80M
FY2026 Q4
$232.00M
FY2027 Q1
$70.80M
Revenue
$3.36B
Net income
$94.80M
Diluted EPS
0.23
Operating cash flow
$108.50M
Free cash flow
$70.80M
Fetching…
Sources
Revenue
$3.26B
Net income
$39.20M
Diluted EPS
0.09
Operating cash flow
$263.40M
Free cash flow
$232.00M
Fetching…
Sources
Revenue
$3.12B
Net income
$59.20M
Diluted EPS
0.14
Operating cash flow
$207.90M
Free cash flow
$175.80M
Fetching…
Sources
Revenue
$3.10B
Net income
$62.00M
Diluted EPS
0.14
Operating cash flow
$133.90M
Free cash flow
$105.90M
Fetching…
Sources
Revenue
$3.12B
Net income
$62.40M
Diluted EPS
0.15
Operating cash flow
$86.40M
Free cash flow
$48.70M
Fetching…
Sources
Revenue
$3.25B
Net income
$22.79M
Diluted EPS
0.07
Operating cash flow
$207.52M
Free cash flow
$156.60M
Fetching…
Sources
Revenue
$2.88B
Net income
$3.93M
Diluted EPS
0.01
Operating cash flow
$183.46M
Free cash flow
$151.77M
Fetching…
Sources
Revenue
$2.86B
Net income
$299.12M
Diluted EPS
0.68
Operating cash flow
$123.41M
Free cash flow
$91.48M
Fetching…
Sources
Is it cheap or expensive?
Fair value $51.47 vs current price $20.57
Wall Street consensus is the average analyst price target: $31.05 (-39.7% lower than our fair-value estimate).
Our most-likely fair value is $51.47 a share — about 150.2% above today's price of $20.57, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $3.3M. Interest coverage 55.3x.
Net debt
$3.30M
Interest coverage
55.28x
Chewy, Inc.'s profit covers its interest bill about 55.3 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CHWY
BASELINE
Chewy, Inc.
Total debt $523.40M Interest coverage 55.28x This is the baseline the peer rows are being compared against.
Total debt $2.78B Interest coverage 0.92x -98% vs CHWY Carries about 60.2x less debt cushion than CHWY.
Total debt $3.67B Interest coverage 0.78x -99% vs CHWY Carries about 70.7x less debt cushion than CHWY.
Total debt $3.08B Interest coverage 19.88x -64% vs CHWY Carries about 2.8x less debt cushion than CHWY.
Total debt $494.04M Interest coverage 5.36x -90% vs CHWY Carries about 10.3x less debt cushion than CHWY.
Total debt $5.62B Interest coverage 3.72x -93% vs CHWY Carries about 14.8x less debt cushion than CHWY.
What you should know
The case for and against CHWY
3 Rewards
0 Risks
Rewards
-
Revenue grew 1.9% last year.
-
Returns 63.8% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
34.28x
Forward P/E
11.19x
P/B
19.87x
P/S
0.66x
EV/EBITDA
21.26x
PEG ratio
0.43x
Profitability
How much profit each dollar creates
Gross margin
29.9%
Operating margin
3.8%
Net margin
2.0%
ROE
63.8%
ROA
6.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.23x
Current ratio
0.78x
Quick ratio
0.32x
Total debt
$523.40M
Total cash
$520.10M
Growth
How the business has been compounding
Revenue TTM
$12.84B
Revenue 5Y CAGR
9.1%
EPS TTM
0.60
EPS 5Y CAGR
63.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$713.70M
Free CF TTM
$562.40M
FCF margin
4.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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