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 Image 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 Image 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 Image 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 Image 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% Image