A Business at a Glance
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Chewy, Inc.
CHWY
$8.9B
Mkt Cap
$20.86
+1.96%
Chewy, Inc. (CHWY) has a current P/E ratio of 42.6, compared to its historical median P/E of 40.9. The stock is currently considered Expensive based on its historical valuation range.
Chewy, Inc. (CHWY) has a 5-year average return on invested capital (ROIC) of 52.0%. This indicates strong capital allocation and a potential competitive advantage.
Chewy, Inc. (CHWY) has a market capitalization of $5.0B. It is classified as a mid-cap stock.
Chewy, Inc. (CHWY) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 5.53%.
Based on historical P/E analysis, Chewy, Inc. (CHWY) appears expensive. The current P/E of 42.6 is 4% above its historical median of 40.9. The estimated fair value CAGR (P/E method) is 98.8%.
Chewy, Inc. (CHWY) operates in the Retail-Catalog & Mail-Order Houses industry, within the Consumer Cyclical sector.
Chewy, Inc. (CHWY) reported annual revenue of $12.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Chewy is an online retailer of pet products, supplies, and prescriptions serving pet parents across the United States and Canada through a digital-first platform. The company operates a subscription-based recurring revenue model, with over 80% of net sales flowing through its Autoship program, which provides customers with convenient automatic replenishment of pet essentials at competitive prices. Chewy partners with approximately 3,200 brands and offers approximately 130,000 products and services, complemented by proprietary private brands, generating revenue through product sales, sponsored advertising, and emerging healthcare services including veterinary clinics and fresh-frozen pet food. The company's competitive moat is built on a world-class fulfillment network spanning the U.S. and Canada with the capability to serve over 80% of the U.S. population overnight and nearly 100% within two days, supported by next-generation automated facilities that drive structural cost advantages and operational leverage. Chewy's customer base comprises pet parents who view pets as family members and demonstrate high willingness to pay for premium health and wellness products, with the company serving approximately 21.5 million active customers and generating strong unit economics through high-margin Autoship subscriptions, sponsored advertising, and ecosystem services that deepen customer engagement and lifetime value.
【Margin expansion through operating leverage】 Management expects continued profitability expansion in 2026 driven primarily by operating leverage rather than gross margin gains, as the company scales its next-generation automated fulfillment centers and realizes structural efficiencies from AI-driven productivity improvements. The consumer pet environment has become more challenged with modest pressure on premiumization and product attachment rates, though the company continues to gain market share and sees resilience in core Autoship and active customer trends. Strategic investments in Chewy Vet Care, Chewy Plus membership, and private brands are expected to drive long-term shareholder value and ecosystem engagement, while the company maintains disciplined capital allocation and targets net leverage below 2x adjusted EBITDA. Management remains confident in the secular shift toward e-commerce penetration and Chewy's differentiated flywheel model, positioning the company to deliver consistent, durable EBITDA expansion over the coming years despite near-term consumer headwinds.
| Metric | Target | Period |
|---|---|---|
| Net sales | $13.40 billion–$13.55 billion | FY2026 |
| Adjusted EBITDA margin | 6.6%–6.8% | FY2026 |
| Adjusted EBITDA | approximately $900 million | FY2026 |
| Q2 FY2026 net sales | $3.30 billion–$3.33 billion | Q2 FY2026 |
| Q2 FY2026 adjusted EBITDA margin | 6.3%–6.4% | Q2 FY2026 |
| Q2 FY2026 adjusted diluted EPS | approximately $0.36 | Q2 FY2026 |
| AI-driven efficiencies benefit | low tens of millions of dollars | FY2026 |
| Chewy Vet Care clinics | approximately 60 clinics | exiting FY2026 |
Net sales (FY2026): “For fiscal 2026, we now expect net sales of between approximately $13.40 billion and $13.55 billion, representing approximately 6.3%-7.5% year-over-year growth.”
Adjusted EBITDA margin (FY2026): “we are maintaining our full-year fiscal 2026 adjusted EBITDA margin guidance range at 6.6%-6.8%, or approximately 100 basis points of year-over-year expansion at the midpoint.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 12.6B | 12.6B | 11.9B | 11.1B | 10.1B | 9.0B |
| Net Income | 206M | 223M | 393M | 40M | 50M | -75M |
| EPS | $0.48 | $0.52 | $0.91 | $0.09 | $0.12 | $-0.18 |
| Free Cash Flow | 487M | 562M | 453M | 343M | 119M | 8.6M |
| ROIC | 5.8% | 122.3% | 111.5% | -3.8% | 33.4% | -3.5% |
| Gross Margin | 29.6% | 29.8% | 29.2% | 28.4% | 28.0% | 26.6% |
| Debt/Equity | 0.00 | 1.12 | 10.53 | 5.25 | 14.72 | -53.66 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 202M | 254M | 113M | -24M | 56M | -74M |
| Operating Margin | 1.6% | 2.0% | 0.9% | -0.2% | 0.6% | -0.8% |
| ROE | 44.0% | 58.7% | 101.8% | 11.8% | 82.7% | 159.0% |
| Shares Outstanding | 239M | 428M | 432M | 440M | 416M | 418M |
Chewy, Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
Chewy, Inc. trades at 42.6x trailing earnings, compared to its 15-year median P/E of 40.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 10.2x vs a median of 28.6x. The company's 5-year average ROIC is 52.0% with a gross margin of 28.4%. Total shareholder yield (buybacks) is 5.5%. At current prices, the estimated annualized return to fair value is +147.6%.
Chewy, Inc. (CHWY) has a net profit margin of 1.8%. This is a modest margin.
Chewy, Inc. (CHWY) generated $562 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Chewy, Inc. (CHWY) has a debt-to-equity ratio of 1.12. This indicates moderate leverage.
Chewy, Inc. (CHWY) reported earnings per share (EPS) of $0.52 in its most recent fiscal year.
Chewy, Inc. (CHWY) has a return on equity (ROE) of 58.7%. This indicates the company generates strong returns for shareholders.
Chewy, Inc. (CHWY) has a 5-year average gross margin of 28.4%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 9 years of financial data for Chewy, Inc. (CHWY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Chewy, Inc. (CHWY) has a book value per share of $1.16, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued profitability expansion in 2026 driven primarily by operating leverage rather than gross margin gains, as the company scales its next-generation automated fulfillment centers and realizes structural efficiencies from AI-driven productivity improvements. The consumer pet environment has become more challenged with modest pressure on premiumization and product attachment rates, though the company continues to gain market share and sees resilience in core Autoship and active customer trends. Strategic investments in Chewy Vet Care, Chewy Plus membership, and private brands are expected to drive long-term shareholder value and ecosystem engagement, while the company maintains disciplined capital allocation and targets net leverage below 2x adjusted EBITDA. Management remains confident in the secular shift toward e-commerce penetration and Chewy's differentiated flywheel model, positioning the company to deliver consistent, durable EBITDA expansion over the coming years despite near-term consumer headwinds.
Based on recent SEC filings and earnings calls, Chewy, Inc. (CHWY) has provided the following forward guidance: Net sales: $13.40 billion–$13.55 billion (FY2026); Adjusted EBITDA margin: 6.6%–6.8% (FY2026); Adjusted EBITDA: approximately $900 million (FY2026); Q2 FY2026 net sales: $3.30 billion–$3.33 billion (Q2 FY2026); Q2 FY2026 adjusted EBITDA margin: 6.3%–6.4% (Q2 FY2026), plus 3 additional metrics.
Adjusted EBITDA (FY2026): “At the midpoints of our guidance ranges, this implies approximately $900 million of adjusted EBITDA for the year.”
Q2 FY2026 net sales (Q2 FY2026): “For the second quarter of fiscal 2026, we expect net sales between approximately $3.30 billion and $3.33 billion, representing approximately 6%-7% year-over-year growth.”
Q2 FY2026 adjusted EBITDA margin (Q2 FY2026): “For the second quarter, we expect adjusted EBITDA margin of between 6.3%-6.4%, representing approximately 50 basis points of year-over-year expansion at the midpoint.”
Q2 FY2026 adjusted diluted EPS (Q2 FY2026): “We also expect adjusted diluted EPS for the second quarter to be approximately $0.36.”
AI-driven efficiencies benefit (FY2026): “Based on our current roadmap and implementation progress, we continue to expect AI-driven efficiencies to contribute a low 10 of millions of dollars benefit in fiscal 2026, with a more meaningful ramp expected into 2027 and beyond.”
Chewy Vet Care clinics (exiting FY2026): “Combined, we expect to operate approximately 60 clinics exiting fiscal 2026, with embedded revenue contribution approaching approximately $290 million at a steady state.”