Chewy Inc. Class A Common Stock (CHWY)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business, not the stock chart. Chewy sells pet food, supplies, and medicines online, largely through its Autoship subscription, with 18,000 employees. The latest filed quarter, fiscal Q2 2026 ended 2026-08-02, showed revenue of $3.3B, net income of $80.5M, and diluted EPS of $0.20, better than fiscal Q2 2025 ended 2025-08-03, when revenue was $3.1B, net income was $62.0M, and diluted EPS was $0.14. For the full fiscal year 2025 ended 2026-02-01, revenue was $12.6B and net income was $222.8M, down from fiscal 2024 ended 2025-02-02 revenue of $11.9B and net income of $392.7M. So sales are growing, but profits have been uneven. FairStock classifies it as a stalwart, with profit growth of 64.7% a year over three years and revenue growth of 7.6%, but the most recent fiscal year shows a profit decline. The balance sheet and returns need care: debt-to-equity is 3.13, Altman Z is 1.85, and ROCE is 6.08%, while ROE of 71.99% looks leverage-flattered. Free cash flow is real: $568.1M trailing, a 7.0% FCF yield on an $8.1B market cap. At the close on 2026-10-13, the price was $19.71, giving a P/E of 30.32, P/B of 21.42, EV/EBITDA of 16.85, PEG of 1.02, and FairStock score of 37/100. The Graham Number is $3.67, so the margin of safety is negative 437.06%. I see a decent repeat-purchase business but no asset cushion; the price already assumes continued profit improvement.

In plain English: Chewy sells pet food, supplies, and medicines online, mostly through repeat subscription orders. The business is growing sales and the latest quarter showed more profit than a year earlier, but overall profits have been uneven and it uses a lot of debt. At $19.71, the price looks high compared with its profits and net assets, so it is not a classic bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-02) · fiscal Q1 2026 10-Q (period ended 2026-05-03) · fiscal Q3 2025 10-Q (period ended 2025-11-02) · fiscal Q2 2025 10-Q (period ended 2025-08-03) · FY2025 10-K (period ended 2026-02-01) · FY2024 10-K (period ended 2025-02-02) · FY2023 10-K (period ended 2024-01-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer