Chewy Experiences Significant Share Price Drop
As of early 2023, Chewy (NYSE: CHWY) has seen its share price fall nearly 20%, making it an attractive proposition for long-term investors. The company’s adjusted EBITDA grew by 26% to $719 million last year, with expectations to rise between $900 million and $930 million this year, reflecting effective strategies such as the ramping up of a new fulfillment center and a focus on higher-margin business segments.
Chewy’s business model demonstrates resilience, with approximately 70% of sales generated from consumables like pet food, and 84% of last quarter’s sales stemming from its autoship program. The stock currently trades at a forward P/E of below 17, a significant discount compared to competitors like Walmart and Costco, which have multiples over 40, despite Chewy’s faster revenue growth and improved profitability.
