# Chewy (CHWY.US)

Canonical: https://gigainvestors.com/s/CHWY

Analysis as of: 2026-10-16T07:27:25.581Z. Financial observations: FY2017–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $21.31 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 6

- Operating margin variation: 1.47×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.12×

- FY2018: -0.16×

- FY2019: -0.08×

- FY2020: -0.05×

- FY2021: -0.01×

- FY2022: -0.01×

- FY2023: 0.01×

- FY2024: -0.00×

- FY2025: 0.01×

- FY2026: 0.02×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 0.0%

- ROIC, second-lowest year: -26.2%

- Typical minus recent gross margin: -3.2 pp

- Typical gross margin (annual median): 26.0%

- Recent gross margin (lower of latest and 3-year median): 29.2%

- Years with nonpositive capital: 8

- Capital spending / revenue: 1.6%

- ROIC including acquisitions, ten-year median: 31.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -123.3%

- FY2018: 0.0%

- FY2019: 0.0%

- FY2020: 0.0%

- FY2021: -26.2%

- FY2022: -13.7%

- FY2023: 8.5%

- FY2024: -1.9%

- FY2025: 88.1%

- FY2026: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 0.84×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $531M

- Net income, five-year total: $630M

- Return on incremental invested capital: 72.1%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 1.5 pp

- Working capital / revenue, final three-year average: -1.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.38×

- FY2023: -0.42×

- FY2024: 1.00×

- FY2025: 1.00×

- FY2026: 1.00×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.0% vs 88.1%

- Per-share earnings: -0.68 to 0.52 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.9%

- Diluted shares, 5-year annual growth: 0.9%

- Per-share value change: $1.20

- Per-share value, starting three-year median: -$0.68

- Per-share value, ending three-year median: $0.52

- Buybacks concentrated in cheaper years (correlation): 0.80

- Average buyback yield: 1.9%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: -$428M

- ROIC, first three-year median: 0.0%

- ROIC, last three-year median: 88.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$0.27

- FY2018: -$1.29

- FY2019: -$0.68

- FY2020: -$0.63

- FY2021: -$0.23

- FY2022: -$0.18

- FY2023: $0.12

- FY2024: $0.09

- FY2025: $0.91

- FY2026: $0.52

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -13.0%

- Receivables to sales index (DSRI): 1.24×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 43.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.10×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.11×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -36.3%

- FY2018: -51.3%

- FY2019: -47.0%

- FY2020: -32.1%

- FY2021: -12.9%

- FY2022: -12.8%

- FY2023: -11.9%

- FY2024: -14.0%

- FY2025: -6.8%

- FY2026: -13.0%

## Holders

## Price story

Down 72% since Oct 2021 · "Chewy Lowers Fiscal 2026 Revenue Guidance on Weak Pet Macro, Morgan Stanley Says" (finance.yahoo.com, Jun 2026) · sales +6.2%

Story as of 2026-10-16T09:58:30.311Z; price observation 2026-10-15.

- 2025-06-11: Chewy falls after full-year guidance overshadows solid Q1 numbers ([seekingalpha.com](https://seekingalpha.com/news/4457173-chewy-falls-after-full-year-guidance-overshadows-solid-q1-numbers?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-12-10: Chewy Quarterly Profit, Revenue Rise but Retailer Issues Bleak Forecast ([finance.yahoo.com](https://finance.yahoo.com/m/78098a23-f125-3d38-bc86-e60d93513b61/chewy-quarterly-profit%2C.html))

- 2026-06-11: Chewy Lowers Fiscal 2026 Revenue Guidance on Weak Pet Macro, Morgan Stanley Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/chewy-lowers-fiscal-2026-revenue-144726863.html))

- 2026-09-09: Chewy shares drop despite earnings beat as free cash flow disappoints ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/chewy-shares-drop-despite-earnings-151800053.html))

### Sales · FY2025–2026

sales +6.2%; source https://www.sec.gov/Archives/edgar/data/1766502/000176650226000034/chwy-20260201.htm; observed 2026-03-25.

- FY2017: $901M 

- FY2018: $2.1B 

- FY2019: $3.5B 

- FY2020: $4.8B 

- FY2021: $7.1B 

- FY2022: $9.0B 

- FY2023: $10B 

- FY2024: $11B 

- FY2025: $12B 

- FY2026: $13B 

### Gross margin · FY2026

gross margin 29.8%; source https://www.sec.gov/Archives/edgar/data/1766502/000176650226000034/chwy-20260201.htm; observed 2026-03-25.

- FY2017: 16.6% 

- FY2018: 17.5% 

- FY2019: 20.2% 

- FY2020: 23.6% 

- FY2021: 25.5% 

- FY2022: 26.6% 

- FY2023: 28.0% 

- FY2024: 28.4% 

- FY2025: 29.2% 

- FY2026: 29.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet retail; annual sales are USD 12.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1766502/000176650226000034/chwy-20260201.htm (filed 2026-03-25); FY2026: revenue 12601500000; grossProfit 3753900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHWY.US: 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.

### Why customers stay

Margins ranged from 28.4% to 29.8% during 2024–26; it earns 0% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2024: grossProfit / revenue = 28.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2025: grossProfit / revenue = 29.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1766502/000176650226000034/chwy-20260201.htm (filed 2026-03-25); FY2026: grossProfit / revenue = 29.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); 10-year return on capital observations [[2017,-1.2333037362126342],[2018,0],[2019,0],[2020,0],[2021,-0.2615322347499277],[2022,-0.1367771072995312],[2023,0.08476625427716693],[2024,-0.018677410951744192],[2025,0.8812589525427178],[2026,1.5764421424884774]]; median 0. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 262.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2024: growth capex 33589000; upkeep 109693000; owner earnings 39580000. Growth capex / owner earnings = 0.8486356745831228.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2025: growth capex 29274000; upkeep 114557000; owner earnings 392738000. Growth capex / owner earnings = 0.07453824177950695.

- Source: https://www.sec.gov/Archives/edgar/data/1766502/000176650226000034/chwy-20260201.htm (filed 2026-03-25); FY2026: growth capex 0; upkeep 129200000; owner earnings 222900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1766502/000176650226000034/chwy-20260201.htm (filed 2026-03-25); FY2026: cash repurchases 262500000 USD.

### Are managers owners

Insiders own 2.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHWY.US SharesStats.PercentInsiders = 2.68 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.7 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Closing price 21.31 USD; reporting-to-trading FX 1; FY2026 annual sales per share 29.59488022545796; price multiple 0.720056977343967. FY2026 cash earnings/share 0.5234852043212775. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2019-06: $35.00 per share

- 2019-07: $33.56 per share

- 2019-08: $33.00 per share

- 2019-09: $24.58 per share

- 2019-10: $24.67 per share

- 2019-11: $24.76 per share

- 2019-12: $29.00 per share

- 2020-01: $26.51 per share

- 2020-02: $29.60 per share

- 2020-03: $37.49 per share

- 2020-04: $43.24 per share

- 2020-05: $44.44 per share

- 2020-06: $44.69 per share

- 2020-07: $52.49 per share

- 2020-08: $61.07 per share

- 2020-09: $54.83 per share

- 2020-10: $61.60 per share

- 2020-11: $77.58 per share

- 2020-12: $89.89 per share

- 2021-01: $101.82 per share

- 2021-02: $101.56 per share

- 2021-03: $84.71 per share

- 2021-04: $79.72 per share

- 2021-05: $73.62 per share

- 2021-06: $79.71 per share

- 2021-07: $83.70 per share

- 2021-08: $88.12 per share

- 2021-09: $68.11 per share

- 2021-10: $75.80 per share

- 2021-11: $68.26 per share

- 2021-12: $58.97 per share

- 2022-01: $47.61 per share

- 2022-02: $47.14 per share

- 2022-03: $40.78 per share

- 2022-04: $29.06 per share

- 2022-05: $24.80 per share

- 2022-06: $34.72 per share

- 2022-07: $38.81 per share

- 2022-08: $34.33 per share

- 2022-09: $30.72 per share

- 2022-10: $38.73 per share

- 2022-11: $43.13 per share

- 2022-12: $37.08 per share

- 2023-01: $45.06 per share

- 2023-02: $40.55 per share

- 2023-03: $37.38 per share

- 2023-04: $31.01 per share

- 2023-05: $29.49 per share

- 2023-06: $39.47 per share

- 2023-07: $33.90 per share

- 2023-08: $23.98 per share

- 2023-09: $18.26 per share

- 2023-10: $19.33 per share

- 2023-11: $17.42 per share

- 2023-12: $23.63 per share

- 2024-01: $17.82 per share

- 2024-02: $17.64 per share

- 2024-03: $15.91 per share

- 2024-04: $14.99 per share

- 2024-05: $21.21 per share

- 2024-06: $27.24 per share

- 2024-07: $24.18 per share

- 2024-08: $28.55 per share

- 2024-09: $29.29 per share

- 2024-10: $26.97 per share

- 2024-11: $33.41 per share

- 2024-12: $33.49 per share

- 2025-01: $38.98 per share

- 2025-02: $37.26 per share

- 2025-03: $32.51 per share

- 2025-04: $37.50 per share

- 2025-05: $45.25 per share

- 2025-06: $42.62 per share

- 2025-07: $36.70 per share

- 2025-08: $40.96 per share

- 2025-09: $40.45 per share

- 2025-10: $33.72 per share

- 2025-11: $34.77 per share

- 2025-12: $33.05 per share

- 2026-01: $29.11 per share

- 2026-02: $27.42 per share

- 2026-03: $27.00 per share

- 2026-04: $25.42 per share

- 2026-05: $22.54 per share

- 2026-06: $19.65 per share

- 2026-07: $22.60 per share

- 2026-08: $23.80 per share

- 2026-09: $18.20 per share

- 2026-10: $21.31 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1766502/000176650226000034/chwy-20260201.htm); period 2026-02-01, filed 2026-03-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.