* Note: Prices are in Million (M) USD.
Description:
Chewy, Inc., is dedicated to the pure business of e-commerce in the United States. The company is headquartered in Dania Beach, Florida.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $596 M
Debt : $0 M
EBITDA : $203 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: TRADE & SERVICES
Industry: RETAIL-CATALOG & MAIL-ORDER HOUSES
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 24.68
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $154 M
Average Revenue: $6,725 M
Revenue Converted To Free Cash FLow(%): 2%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 407.41%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $11,861 M
Revenue 4 Years Ago (2021-01-31): $7,146 M
Last 5 Years Average Revenue Growth: 13%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $431 M
Share Count 5 Years Ago (2021-01-31): $407 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.65
Trailing 12-Month Earnings Per Share (EPS): $1.26
Average Earnings Per Share (EPS): $1.46
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -97%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $36
52-Week Low: $20
Threshold Price (15% Above 52-Week Low): $23
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $15,670 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 16 points to above Chewy Inc (CHWY) stock.
Last 3 Years Avg PE (Limited to last 3 years of EPS data) 40, Fair Value PE 12, Industry Based PE is 20 and Growth based PE is 10. Based on these all values average assigned is 20.50.
Value-Trades has assined P/E value 20.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.455.
The fair value of Chewy Inc (CHWY) stock should be (20.50 x $1.455) = $29.83
