Chewy: Expanding Margin Profile

The Asian Investor31.78K FollowersFollow5ShareSavePlay(8min)CommentsSummaryChewy, Inc. delivered a strong Q4 with 8% Y/Y revenue growth and expanding EBITDA and FCF margins.Net sales per active customer rose 2.2% Y/Y to $591, supporting organic revenue growth and underpinning a compelling long-term growth thesis for Chewy's e-commerce platform.Free cash flow surged 48% year-over-year for CHWY to $232M, driven by higher operating cash flow and higher platform metrics, such as NSPAC.CHWY stock trades at a 14.5X forward P/E, about 34% below its 3-year average P/E ratio, reinforcing its attractive valuation and profitability profile. Mr Vito/E+ via Getty Images Chewy, Inc. (CHWY) reported earnings for its fourth fiscal quarter before the market opened on Friday, which led to a 15% upswing in the firm's share price. This was mainly because of a This article was written byThe Asian Investor31.78K FollowersFollowI am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CHWY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.