CHWYChewy, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.8×) and margins widening, but returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 56% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CHWY?
Chewy, Inc. earns 74% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 65 points above what the capital costs: growth creates value
- Operating margin
- 2.5%
Operating margin · Internet Retail median 6.0% · 12 months to Q2 2026
- Cash conversion
- 2.83×
Cash conversion · 4.45× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −1.3% |
| FY2021 | −0.82% |
| FY2022 | 0.56% |
| FY2023 | −0.21% |
| FY2024 | 0.95% |
| FY2025 | 2.0% |
Details›
- Gross margin12 months to Q2 2026
- 30%
- Operating margin12 months to Q2 2026
- 2.5%
- Net margin12 months to Q2 2026
- 2.1%
- Free cash flow margin
- 4.3%
- Revenue, trailing twelve months
- $13.1B
- Free cash flow, trailing twelve months
- $568M
- Net income, trailing twelve months
- $274M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 74%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Retail
Ranks #5 of 14 by RyuScore