Is Chewy, Inc.'s (NYSE:CHWY) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?

Simply Wall St.03:18

Chewy's (NYSE:CHWY) stock is up by a considerable 20% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's...

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Given the company's impressive performance, we decided to study its financial indicators more closely as a company's...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-chwy/chewy/news/is-chewy-incs-nysechwy-stocks-recent-performance-being-led-b\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Chewy, Inc.'s (NYSE:CHWY) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Chewy, Inc.'s (NYSE:CHWY) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-16 03:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-chwy/chewy/news/is-chewy-incs-nysechwy-stocks-recent-performance-being-led-b><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Chewy's (NYSE:CHWY) stock is up by a considerable 20% over the past three months.   Given the company's impressive performance, we decided to study its financial indicators more closely as a company's...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-chwy/chewy/news/is-chewy-incs-nysechwy-stocks-recent-performance-being-led-b\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-chwy/chewy/news/is-chewy-incs-nysechwy-stocks-recent-performance-being-led-b","article_id":"2483552565","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4422000-choice1-main-header/1585186589176"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483552565","pubTimestamp":1731698300,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Chewy's (NYSE:CHWY) stock is up by a considerable 20% over the past three months. Given the company's impressive...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","BK4200":"专卖店","LU1941712348.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"AT\" (USD) ACC","NYSE":"纽交所","BK4122":"互联网与直销零售","BK4548":"巴美列捷福持仓","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","CHWY":"Chewy, Inc.","LU1941712264.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"A\" (USD) INC"},"translate_title":"Chewy，Inc.（纽约证券交易所代码：CHWY）股票最近的表现是由其有吸引力的财务前景引领的吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CHWY":1,"NYSE":1},"content_text":"Chewy's (NYSE:CHWY) stock is up by a considerable 20% over the past three months.   Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes.      Particularly, we will be paying attention to Chewy's  ROE today.    Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity.  View our latest analysis for Chewy  How To Calculate Return On Equity?  Return on equity can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Chewy is:74% = US$363m ÷ US$487m (Based on the trailing twelve months to July 2024). The 'return' refers to a company's earnings over the last year.  One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.74 in profit.   What Is The Relationship Between ROE And Earnings Growth?  So far, we've learned that ROE is a measure of a company's profitability.  We now need to evaluate how much profit the company reinvests or \"retains\" for future growth which then gives us an idea about the growth potential of the company.  Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.  Chewy's Earnings Growth And 74% ROE   Firstly, we acknowledge that Chewy has a significantly high ROE.   Secondly, even when compared to the industry average of 19% the company's ROE is quite impressive.   As a result, Chewy's exceptional 74% net income growth seen over the past five years, doesn't come as a surprise.     We then compared Chewy's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 17% in the same 5-year period.   NYSE:CHWY Past Earnings Growth November 15th 2024 Earnings growth is a huge factor in stock valuation.  It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline).   This then helps them determine if the stock is placed for a bright or bleak future.    Has the market priced in the future outlook for CHWY? You can find out in our latest intrinsic value infographic research report.   Is Chewy Using Its Retained Earnings Effectively?    Given that Chewy doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.     Summary    Overall, we are quite pleased with Chewy's performance.      In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings.       With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink.     To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483552565"}