To The Moon

If you've got 2 minutes, then I've got 4 charts that you'll want to see if you own shares of pet e-commerce company Chewy $Chewy, Inc.(CHWY)$ or if you're thinking of buying shares

Charts cover:

1) Revenue

2) Gross margin

3) Capital expenditures

4) Net income

Let's go

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1) Revenue

While investors fretted over stiff competition from Amazon, Chewy has tripled its revenue in the last 5 years I've always liked the personal touch it tries to provide its customers -- sometimes reaching out on a pet's birthday or showing support at a pet's passing

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2) Gross margin

Chewy is winning but e-commerce is a low-margin space. Its 28% gross margin in the latest quarter is nothing to write home about That said, Chewy is succeeding with higher-margin products and gross margin is up over 40% (4,000 basis pts) in the last 5 years

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3) Capital expenditures

This might seem an odd metric for Chewy but becoming a $10B+ business required massive investments in its infrastructure Management wisely didn't just invest in its distribution centers, it's also spending to automate them. This is huge

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4) Net income

Chewy's 1st automated distribution center opened in October 2020. It's not a coincidence that its profitability immediately started to soar Chewy finally has net income but its net margin is still lower than 1%

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