T
TubeFolio
Back to Dashboard

Chewy Stock Investors Celebrate as the Company Boasts 22 Million Customers

Parkev Tatevosian, CFA•Aug 31, 2026

Summary

Parkev examines Chewy's position in the $100 billion pet market, highlighting its revenue growth from $3 billion in 2019 to $12.8 billion recently. Parkev notes that the company’s expansion into veterinary care and telehealth provides a high-margin revenue stream that complements its existing e-commerce retail model. Parkev highlights that while the business is capital-intensive because it manages its own inventory and logistics, this allows for greater operational control and efficiency.

CHWY: Parkev identifies Chewy as a buy with a medium conviction level, noting that the company has over 21.5 million customers and an increasing net sales per active customer of $597. Parkev emphasizes the strength of Chewy's recurring sales model, which provides valuable data for supply chain optimization and helps improve operating margins over time. Parkev calculates a fair value for Chewy at $34 per share, which implies a 45% upside from its current market price of approximately $23 per share.

Mentioned Stocks

CHWY
Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev rates Chewy as a buy with medium conviction because the stock is undervalued relative to its fair value. Parkev calculates a fair value of $34 per share, offering a 45% upside from the current price of approximately $23. Additionally, Parkev highlights the company's impressive return on invested capital (ROIC) of 26.25% and a forward PE ratio of 12.6, which Parkev considers cheap for a business with such growth potential and improving margins.

Loading chart...