Added to YB: 2021-04-26
Pitch date: 2021-04-26
CHWY [bearish]
Chewy, Inc.
+72.13%
current return
Author Info
No bio for this author
Company Info
Chewy, Inc., together with its subsidiaries, engages in the e-commerce business in the United States.
Market Cap
$9.7B
Pitch Price
$83.50
Price Target
65.00 (+179%)
Dividend
N/A
EV/EBITDA
18.97
P/E
39.52
EV/Sales
0.75
Sector
Specialty Retail
Category
value
My first short idea: Chewy, Inc (CHWY)
CHWY (short): Chewy’s pandemic-driven growth is expected to slow as consumers return to stores and competitors use broader retail, logistics and same-day delivery networks, raising customer-acquisition and marketing costs against a replicable model. At $84.04, the shares trade at ~225x FY22 adjusted EBITDA versus ~28x for comparable high-growth consumer companies; $8.9B of FY22 sales at 3x P/S supports a $65 value, implying ~22% downside.
Read full article (7 min)