CHWY

Chewy Inc - Ordinary Shares - Class A

Consumer


Presented:09/26/2024
Price:$29.63
Cap:$12.09B
Current Price:$28.86
Cap:$11.77B

Presented

Date09/26/2024
Price$29.63
Market Cap$12.09B
Ent Value$10.82B
P/E Ratio35.6x
Book Value$1.17
Div Yield11.4%
Shares O/S407.90M
Ave Daily Vol8,861,746
Short IntN/A

Current

Price$28.86
Market Cap$11.77B
Chewy, Inc. operates as an online retailer of pet food and other pet-related products and services. It supplies pet medications, food, treats and other pet-health products and services for dogs, cats, fish, birds, small pets, horses, and reptiles. It has a portfolio of pet healthcare offerings that includes Chewy Pharmacy, Connect with a Vet, and CarePlus, an exclusive suite of pet-first insurance and wellness plans. The company was founded by Ryan Cohen and Michael Day in September 2011 and is headquartered in Plantation, FL.

Publicly traded companies mentioned herein: Chewy Inc (CHWY)

Highlights

The presenter is long shares of Chewy Inc (CHWY), an online retailer with 8% market share in the $144B pet food and supplies category. The stock fell from $24 per share in mid-December 2023 to $16 in mid-February and was choppy for the next few months due to concerns around macroeconomic headwinds and TAM saturation. However, this sentiment seemed to ignore the building blocks that can drive HSD% revenue growth and >20% incremental margins. While CHWY has since rallied to the current $30 per share, he feels these tailwinds remain underappreciated by the Street and therefore sees ~25% upside in his base case and ~75% upside in his bull case over the next 12 months.

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Idea Discussion

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