2024-03-21 09:15:00 ET
Summary
- Chewy has a strong balance sheet with no debt and a significant amount of cash, providing stability for the stock.
- The business is experiencing slow growth and the stock is priced at 13x EBITDA, leading to a downgrade to a sell rating.
- Chewy expects revenues to grow by 8% in 2024, but the best-case scenario for EBITDA is $540 million, resulting in a stretched valuation.
- I'm downwards revising CHWY stock to a sell.
Investment Thesis
Chewy ( CHWY ) delivered unimpressive guidance together with its fiscal Q4 2023 results ....
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Chewy Earnings: Disappointing Outlook, Moved To A Sell