Chewy Gross Profit vs. Return On Asset

CHWY Stock  USD 31.37  0.48  1.55%   
Based on the key profitability measurements obtained from Chewy's financial statements, Chewy Inc may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Chewy's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2018-01-31
Previous Quarter
843.8 M
Current Value
843.9 M
Quarterly Volatility
244.2 M
 
Covid
At this time, Chewy's Price To Sales Ratio is fairly stable compared to the past year. Days Sales Outstanding is likely to rise to 6.35 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.17 in 2024. At this time, Chewy's Net Interest Income is fairly stable compared to the past year. Interest Income is likely to rise to about 65.2 M in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (490.2 K) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.170.2836
Way Down
Pretty Stable
For Chewy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chewy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chewy Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chewy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chewy Inc over time as well as its relative position and ranking within its peers.
  
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Is Other Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chewy. If investors know Chewy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chewy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
13.424
Earnings Share
0.92
Revenue Per Share
26.197
Quarterly Revenue Growth
0.026
Return On Assets
0.0135
The market value of Chewy Inc is measured differently than its book value, which is the value of Chewy that is recorded on the company's balance sheet. Investors also form their own opinion of Chewy's value that differs from its market value or its book value, called intrinsic value, which is Chewy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chewy's market value can be influenced by many factors that don't directly affect Chewy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chewy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chewy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chewy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Chewy Inc Return On Asset vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chewy's current stock value. Our valuation model uses many indicators to compare Chewy value to that of its competitors to determine the firm's financial worth.
Chewy Inc is rated fourth in gross profit category among its peers. It is rated fifth in return on asset category among its peers . The ratio of Gross Profit to Return On Asset for Chewy Inc is about  209,696,666,667 . At this time, Chewy's Gross Profit is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Chewy's earnings, one of the primary drivers of an investment's value.

Chewy Return On Asset vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Chewy

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.83 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Chewy

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0135
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Chewy Return On Asset Comparison

Chewy is currently under evaluation in return on asset category among its peers.

Chewy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chewy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chewy will eventually generate negative long term returns. The profitability progress is the general direction of Chewy's change in net profit over the period of time. It can combine multiple indicators of Chewy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-466.9 K-490.2 K
Net Interest Income58.5 M61.4 M
Interest Income62.1 M65.2 M
Operating Income-23.6 M-24.8 M
Net Income From Continuing Ops39.6 M41.6 M
Income Before Tax48.2 M50.6 M
Total Other Income Expense Net71.9 M75.4 M
Net Income Applicable To Common Shares56.6 M59.4 M
Net Income39.6 M41.6 M
Income Tax Expense8.7 M9.1 M
Non Operating Income Net Other-11.8 M-12.4 M
Change To Netincome198.4 M208.3 M
Net Loss 0.09 (0.27)
Income Quality 12.28 (0.07)
Net Income Per E B T 0.82  1.02 

Chewy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Chewy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Chewy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Chewy's important profitability drivers and their relationship over time.

Use Chewy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chewy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chewy will appreciate offsetting losses from the drop in the long position's value.

Chewy Pair Trading

Chewy Inc Pair Trading Analysis

The ability to find closely correlated positions to Chewy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chewy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chewy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chewy Inc to buy it.
The correlation of Chewy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chewy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chewy Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Chewy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Chewy position

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Blockchain Theme
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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.