Chewy Inc logo

Chewy Inc(CHWY)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$20.62
09/18/2026
(24-hour delay)

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Upturn Advisory & Investor View for CHWY

09/18/2026: CHWY (1-star) is currently NOT-A-BUY. Pass it for now.

Chewy Inc is a prominent US-based e-commerce retailer specializing in the pet care market. The company has built a strong reputation through its customer-focused service and its highly successful Autoship subscription model, which generates significant recurring revenue. Its growth strategy is centered on expanding its pet health and pharmacy ecosystems to capture more of the pet owner's budget. However, investors must consider the intense competitive landscape from massive e-commerce giants and the ongoing pressure on marketing and logistics margins. The company best suits growth-oriented investors looking for exposure to the stable, resilient pet care market while monitoring operational efficiency and competitive dynamics.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitThe company continues to expand its addressable market through health services and infrastructure investment.
Momentum investorMixed fitMomentum is conditional on positive market sentiment toward consumer discretionary spending and growth targets.
Value investorMixed fitValuation is often premium due to the company's growth profile, which may deter traditional value investors.
Dividend investorWeak fitChewy does not currently pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitThe stock exhibits price volatility and carries inherent risks associated with the competitive e-commerce sector.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock can experience significant swings based on consumer spending data and earnings reports.
Valuation riskMediumInvestors pay for future growth expectations, which leaves the stock vulnerable if targets are missed.
Competition risk (e-commerce giants)HighAggressive pricing and fulfillment capabilities from Amazon and Walmart put constant pressure on margins.
Business qualityStrongThe high percentage of recurring revenue from Autoship provides a stable foundation for the business.
Dividend incomeLow / noneInvestors should not expect income generation from this stock.
Execution riskMediumScaling automated fulfillment requires precise operational execution to maintain profitability.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -18.86%
Avg. Invested days 28
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/18/2026

Upturn Scorecard

Upturn Star Rating

CHWY receives a 3-star rating, supported by strong analyst coverage. The rating is constrained by soft quantitative characteristics, and weak price momentum.

Company Fundamentals

CHWY has moderate overall fundamentals (3 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2026 versus FY2025, growth and ownership metrics are mixed: negative earnings growth (-43.3%), soft cash generation (FCF margin 4.5%), moderate revenue growth (+6.2%).

Financial Health Rating

CHWY's financial health is supported by solid cash strength, including free-cash-flow generation (4.5% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Free-cash-flow growth is CHWY's strongest growth driver at +24.3% FY2026 versus FY2025 (solid, 4 stars). By comparison, while earnings growth (-43.3%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 101.7% and approximately 20.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 2.68% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BC Partners PE LP 43.96%
BlackRock Inc 5.41%
Canada Pension Plan Investment Board 5.03%
AQR Capital Management LLC 4.07%
Vanguard Capital Management, LLC 2.59%

Unit Economics (Per $1K Revenue)

CHWY generates approximately $298 of gross profit, $20 of operating income, and $45 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

Effective Tax Rate: 15.38%

Quantitative Style Profile

CHWY has a high-quality profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Quality TiltHigh VolatilitySmall / Mid Cap RiskShort Squeeze Risk

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 8.40B USD
Price to earnings Ratio 32.15
1Y Target Price 28.82
Price to earnings Ratio 32.15
1Y Target Price 28.82
Volume (30-day avg) 8.3M shares
Beta 1.42
52 Weeks Range 17.40 - 40.55
Updated Date 09/18/2026
52 Weeks Range 17.40 - 40.55
Updated Date 09/18/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.65

How Company Makes Money

Business areaWhat it includesRetail investor read
ConsumablesPet food, treats, and supplies delivered via direct-to-consumer e-commerce.This is the primary revenue driver that keeps customers coming back regularly.
Chewy HealthPrescription medication, specialized diets, and telehealth services.This is a higher-margin growth segment that increases total customer lifetime value.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Earnings Date

Report Date 2026-09-09
When Before Market
Estimate 0.18
Actual 0.16

Profitability

Profit Margin 2.09%
Operating Margin (TTM) 2.46%

Management Effectiveness

Return on Assets (TTM) 6.08%
Return on Equity (TTM) 71.99%

Valuation

Trailing PE 32.15
Forward PE 14.43
Enterprise Value 8.91B
Price to Sales(TTM) 0.64
Enterprise Value 8.91B
Price to Sales(TTM) 0.64
Enterprise Value to Revenue 0.68
Enterprise Value to EBITDA 17.48
Shares Outstanding 225.45M
Shares Floating 46.86M
Shares Outstanding 225.45M
Shares Floating 46.86M
Percent Insiders 2.68
Percent Institutions 101.66

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Chewy Inc

Exchange NYSE
Headquarters Plantation, FL, United States
IPO Launch date 2019-06-14
CEO & Director Mr. Sumit Singh
Sector Consumer Cyclical
Industry Internet Retail
Full time employees 18000
Full time employees 18000

Chewy, Inc., together with its subsidiaries, engages in the e-commerce business in the United States. It offers pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services. The company serves its customer through its retail websites and mobile applications, including Autoship subscription program. Chewy, Inc. was founded in 2010 and is based in Plantation, Florida.