Is Chewy Stock a Good Investment?
Chewy Investment Advice | CHWY |
- Examine Chewy's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Chewy's leadership team and their track record. Good management can help Chewy navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Other Specialty Retail space and any emerging trends that could impact Chewy's business and its evolving consumer preferences.
- Compare Chewy's performance and market position to its competitors. Analyze how Chewy is positioned in terms of product offerings, innovation, and market share.
- Check if Chewy pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Chewy's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Chewy Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Chewy Inc is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Chewy Stock
Researching Chewy's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 93.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.83. Chewy Inc had not issued any dividends in recent years.
To determine if Chewy is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Chewy's research are outlined below:
| Chewy Inc appears to be risky and price may revert if volatility continues | |
| Chewy Inc currently holds 556.8 M in liabilities with Debt to Equity (D/E) ratio of 4.09, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Chewy Inc has a current ratio of 0.83, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Chewy's use of debt, we should always consider it together with its cash and equity. | |
| Chewy Inc has a poor financial position based on the latest SEC disclosures | |
| Over 93.0% of Chewy shares are held by institutions such as insurance companies | |
| Latest headline from cnbc.com: Jim Cramer wants to buy this falling tech stock and touts another reason to like Disney |
Chewy Quarterly Good Will |
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Chewy uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Chewy Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Chewy's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of March 2024 Upcoming Quarterly Report | View | |
| 29th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 27th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Chewy's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Chewy's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-07-19 | 2019-04-30 | -0.07 | -0.08 | -0.01 | 14 | ||
2023-12-06 | 2023-10-31 | -0.06 | -0.08 | -0.02 | 33 | ||
2021-09-01 | 2021-07-31 | -0.02 | -0.04 | -0.02 | 100 | ||
2020-04-02 | 2020-01-31 | -0.17 | -0.15 | 0.02 | 11 | ||
2024-08-28 | 2024-07-31 | 0.01 | 0.05 | 0.04 | 400 | ||
2021-12-09 | 2021-10-31 | -0.04 | -0.08 | -0.04 | 100 | ||
2020-06-09 | 2020-04-30 | -0.16 | -0.12 | 0.04 | 25 | ||
2019-12-09 | 2019-10-31 | -0.16 | -0.2 | -0.04 | 25 |
Know Chewy's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Chewy is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Chewy Inc backward and forwards among themselves. Chewy's institutional investor refers to the entity that pools money to purchase Chewy's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Neuberger Berman Group Llc | 2024-06-30 | 2.3 M | Two Sigma Advisers, Llc | 2024-06-30 | 2.3 M | Renaissance Technologies Corp | 2024-09-30 | 2 M | Balyasny Asset Management Llc | 2024-06-30 | 1.9 M | Fiera Capital Corporation | 2024-06-30 | 1.6 M | Millennium Management Llc | 2024-06-30 | 1.6 M | Clearbridge Advisors, Llc | 2024-06-30 | 1.5 M | Geode Capital Management, Llc | 2024-06-30 | 1.4 M | Mitsubishi Ufj Trust & Banking Corp | 2024-09-30 | 1.4 M | Bc Partners Advisors L.p. | 2024-06-30 | 276 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 19.6 M |
Chewy's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 13.44 B.Market Cap |
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Chewy's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | (0.35) | |
| Return On Capital Employed | (0.02) | (1.45) | |
| Return On Assets | 0.01 | (0.34) | |
| Return On Equity | 0.08 | (1.56) |
Determining Chewy's profitability involves analyzing its financial statements and using various financial metrics to determine if Chewy is a good buy. For example, gross profit margin measures Chewy's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Chewy's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Chewy's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Chewy Inc. Check Chewy's Beneish M Score to see the likelihood of Chewy's management manipulating its earnings.
Evaluate Chewy's management efficiency
Chewy Inc has return on total asset (ROA) of 0.0135 % which means that it generated a profit of $0.0135 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.8516 %, meaning that it created $0.8516 on every $100 dollars invested by stockholders. Chewy's management efficiency ratios could be used to measure how well Chewy manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.35 in 2024. Return On Capital Employed is likely to drop to -1.45 in 2024. At this time, Chewy's Net Tangible Assets are fairly stable compared to the past year. Intangible Assets is likely to rise to about 8.7 M in 2024, whereas Total Assets are likely to drop slightly above 1.6 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.19 | 0.17 | |
| Tangible Book Value Per Share | 1.10 | 0.16 | |
| Enterprise Value Over EBITDA | 51.52 | (134.33) | |
| Price Book Value Ratio | 16.40 | 201.21 | |
| Enterprise Value Multiple | 51.52 | (134.33) | |
| Price Fair Value | 16.40 | 201.21 | |
| Enterprise Value | 12.3 B | 15 B |
Effective management at Chewy has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Beta 1.064 |
Basic technical analysis of Chewy Stock
As of the 21st of November, Chewy shows the mean deviation of 2.24, and Risk Adjusted Performance of 0.1147. Chewy Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Chewy's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Chewy insiders, such as employees or executives, is commonly permitted as long as it does not rely on Chewy's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Chewy insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Chewy's Outstanding Corporate Bonds
Chewy issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Chewy Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Chewy bonds can be classified according to their maturity, which is the date when Chewy Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| CHEVRON P Corp BondUS166764CA68 | View | |
| US166754AS05 Corp BondUS166754AS05 | View | |
| US166754AP65 Corp BondUS166754AP65 | View | |
| CHEVRON USA INC Corp BondUS166756AE66 | View | |
| CHEVRON USA INC Corp BondUS166756AH97 | View | |
| CHEVRON USA INC Corp BondUS166756AL00 | View | |
| CVX 39 15 NOV 24 Corp BondUS166756AP14 | View | |
| US166756AQ96 Corp BondUS166756AQ96 | View |
Understand Chewy's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Chewy's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1147 | |||
| Market Risk Adjusted Performance | 0.4705 | |||
| Mean Deviation | 2.24 | |||
| Semi Deviation | 1.94 | |||
| Downside Deviation | 2.3 | |||
| Coefficient Of Variation | 703.62 | |||
| Standard Deviation | 3.11 | |||
| Variance | 9.7 | |||
| Information Ratio | 0.1115 | |||
| Jensen Alpha | 0.3523 | |||
| Total Risk Alpha | 0.0795 | |||
| Sortino Ratio | 0.1508 | |||
| Treynor Ratio | 0.4605 | |||
| Maximum Drawdown | 15.78 | |||
| Value At Risk | (3.65) | |||
| Potential Upside | 6.34 | |||
| Downside Variance | 5.3 | |||
| Semi Variance | 3.74 | |||
| Expected Short fall | (2.58) | |||
| Skewness | 1.21 | |||
| Kurtosis | 2.03 |
| Risk Adjusted Performance | 0.1147 | |||
| Market Risk Adjusted Performance | 0.4705 | |||
| Mean Deviation | 2.24 | |||
| Semi Deviation | 1.94 | |||
| Downside Deviation | 2.3 | |||
| Coefficient Of Variation | 703.62 | |||
| Standard Deviation | 3.11 | |||
| Variance | 9.7 | |||
| Information Ratio | 0.1115 | |||
| Jensen Alpha | 0.3523 | |||
| Total Risk Alpha | 0.0795 | |||
| Sortino Ratio | 0.1508 | |||
| Treynor Ratio | 0.4605 | |||
| Maximum Drawdown | 15.78 | |||
| Value At Risk | (3.65) | |||
| Potential Upside | 6.34 | |||
| Downside Variance | 5.3 | |||
| Semi Variance | 3.74 | |||
| Expected Short fall | (2.58) | |||
| Skewness | 1.21 | |||
| Kurtosis | 2.03 |
Consider Chewy's intraday indicators
Chewy intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Chewy stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 131023.0 | |||
| Daily Balance Of Power | 1.008065 | |||
| Rate Of Daily Change | 1.04 | |||
| Day Median Price | 35.25 | |||
| Day Typical Price | 35.46 | |||
| Price Action Indicator | 1.24 | |||
| Period Momentum Indicator | 1.25 | |||
| Relative Strength Index | 65.76 |
Chewy Corporate Filings
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
| 4th of November 2024 Other Reports | ViewVerify | |
F4 | 15th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 20th of September 2024 Other Reports | ViewVerify |
Chewy Stock media impact
Far too much social signal, news, headlines, and media speculation about Chewy that are available to investors today. That information is available publicly through Chewy media outlets and privately through word of mouth or via Chewy internal channels. However, regardless of the origin, that massive amount of Chewy data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Chewy news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Chewy relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Chewy's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Chewy alpha.
Chewy Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Chewy can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Chewy Inc Historical Investor Sentiment
Investor biases related to Chewy's public news can be used to forecast risks associated with an investment in Chewy. The trend in average sentiment can be used to explain how an investor holding Chewy can time the market purely based on public headlines and social activities around Chewy Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Chewy's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Chewy and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Chewy news discussions. The higher the estimate score, the more favorable the investor's outlook on Chewy.
Chewy Corporate Management
| Lisa Sibenac | Director | Profile | |
| Sharon McCollam | Independent Director | Profile | |
| Orlena Yeung | Chief Officer | Profile | |
| David Reeder | Chief Officer | Profile | |
| Brian McAndrews | Independent Director | Profile | |
| Shivakumar Menon | Principal Care | Profile |
Additional Tools for Chewy Stock Analysis
When running Chewy's price analysis, check to measure Chewy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chewy is operating at the current time. Most of Chewy's value examination focuses on studying past and present price action to predict the probability of Chewy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chewy's price. Additionally, you may evaluate how the addition of Chewy to your portfolios can decrease your overall portfolio volatility.