Professional
Added to YB: 2024-06-11
Pitch date: 2024-06-05
CHWY [bullish]
Chewy, Inc.
+14.88%
current return
Author Info
No bio for this author
Company Info
Chewy, Inc., together with its subsidiaries, engages in the e-commerce business in the United States.
Market Cap
$10.1B
Pitch Price
$22.51
Price Target
29.00 (+12%)
Dividend
N/A
EV/EBITDA
25.09
P/E
49.82
EV/Sales
0.79
Sector
Specialty Retail
Category
growth
Chewy's Healthcare and Ads Businesses Should Drive Solid Margin Expansion as Pet Category Recovers
CHWY: Expanding into healthcare & ads to drive margin growth as pet category recovers. Narrow moat from brand loyalty, pet profiles data & comprehensive platform. 2023 online market share ~30%. Oldest cohorts spend $1K+/yr. Expanding private label & healthcare at higher margins. 2033 targets: 15-20% online share, 10%+ adj EBITDA margin. Very high uncertainty from e-commerce competition, regulations & product risks. Exemplary capital allocation with net cash, efficient capex, fulfillment automation & prudent buybacks. $29 fair value estimate.
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