CHWY

Chewy Inc - Ordinary Shares - Class A

Consumer, TMT


Presented:08/22/2022
Price:$41.15
Cap:$17.31B
Current Price:$28.86
Cap:$11.77B

Presented

Date08/22/2022
Price$41.15
Market Cap$17.31B
Ent Value$12.23B
P/E RatioN/A
Book Value$0.14
Div Yield0%
Shares O/S420.61M
Ave Daily Vol5,920,418
Short Int38.80%

Current

Price$28.86
Market Cap$11.77B
Chewy, Inc. operates as a pure-play pet e-tailer in the United States. It supplies pet medications, food, treats and other pet-health products and services for dogs, cats, fish, birds, small pets, horses, and reptiles. The company was founded by Ryan Cohen and Michael Day in September 2011 and is headquartered in Dania Beach, FL.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Chewy Inc (CHWY), PetMed Express Inc (PETS)

Highlights

The presenter is short shares of Chewy Inc (CHWY), an online retailer of pet food and related products. CHWY is viewed as a COVID beneficiary and posted impressive growth during the 2020 - 2021 period before profitability tumbled this year. The online pet food retail industry is a duopoly of CHWY and AMZN that enjoys sticky customer retention rates and price elasticity. He believes that the company is prioritizing short-term profitability over long-term growth and values the stock at anywhere between $20 - $50, which should provide a good risk/reward at the current share price as investors overemphasize EBITDA figures and ignore customer growth.

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Idea Discussion

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