Key Takeaways:
- Chewy (CHWY, Financial) achieves a notable 14% return on capital employed, spotlighting its shift toward profitability.
- Despite a 24% stock decline over five years, increased capital reinvestment indicates potential for future growth.
- Current liabilities ratio presents potential risks that investors should carefully consider.
Chewy's Financial Performance Overview
Chewy Inc. (CHWY) has demonstrated a marked improvement in financial health by achieving a 14% return on capital employed. This milestone underscores the company's transition towards profitability. While the stock has dipped by 24% over the past five years, the upward trend in capital reinvestment suggests promising growth prospects. However, investors should remain cautious of the high current liabilities ratio, which introduces potential risks.
Wall Street Analysts' Forecasts
According to the projections from 22 analysts, Chewy Inc. (CHWY, Financial) holds an average target price of $39.26 over the coming year. The forecasts range from a high estimate of $47.00 to a low of $27.00, representing a potential upside of 13.48% from the current price of $34.60. For more in-depth estimate data, visit the Chewy Inc (CHWY) Forecast page.
Brokerage Recommendations
The consensus from 31 brokerage firms places Chewy Inc. (CHWY, Financial) at an average recommendation of 2.0, signaling an "Outperform" status. This rating is part of a scale that ranges from 1 (Strong Buy) to 5 (Sell).
GuruFocus's Valuation
GuruFocus estimates suggest that the GF Value of Chewy Inc. (CHWY, Financial) in one year is projected to be $39.31. This estimation implies a 13.61% upside from its present price of $34.60. The GF Value reflects GuruFocus' assessment of the stock's fair trading value, derived from historical multiples, past business growth, and future business performance forecasts. Additional detailed data can be accessed on the Chewy Inc (CHWY) Summary page.
