Stock fact sheet · data as of
Chewy, Inc. (CHWY): fair value, margin of safety and Wheel Score
Consumer Cyclical · Specialty Retail · United States · Blend
Is CHWY undervalued?
At 21.31 (close of 16 Oct 2026), CHWY trades 18% under the GLS average fair value of 26.02. 4 of the 8 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between Graham Number (3.72) and Payback Time (55.35). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files CHWY under Blend.
Nine valuation models for CHWY
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 18.36 | -14% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 3.72 | -83% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 33.58 | +58% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 14.31 | -33% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 41.23 | +93% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 34.14 | +60% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 55.35 | +160% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 7.48 | -65% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.07 | -110% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 28.85 | +35% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Chewy, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability CHWY scores 7.4/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 21.9%, ROE 44.7%, ROA 6.6% - with debt at 1.04 times equity and a free-cash-flow yield of 6.6%.
Chewy, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Reportable 100% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded Congressional buy was on 28 Sep 2026.
| Piotroski F-score | 7 / 9 | ROIC | 21.9% |
|---|---|---|---|
| GLS Moat | 7.4 / 10 | ROE | 44.7% |
| Debt / equity | 1.04 | ROA | 6.6% |
| Free-cash-flow yield | 6.6% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 86: Prime
With a Wheel Score of 86, Chewy, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 20/25, Health 16/20, Moat 11/15, Premium 20/20, Stability 19/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 50% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 239,831 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 8.5M shares a day on a market cap of $8.6B, with a beta of 1.38 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 20 / 25 | 18% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 11 / 15 | moat 7.4/10 | |
| Premium | 20 / 20 | implied volatility 50% | |
| Stability | 19 / 20 | 8.5M shares/day, $8.6B cap, beta 1.38 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 9 Dec 2026, 54 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Retail
The 12 companies below are the closest to Chewy, Inc. by market cap within the Specialty Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ETSY Etsy, Inc. | 89.18 | 91.93 | +3% | 73Good | $8.2B |
| MUSA Murphy USA Inc. | 544.73 | 357.54 | -52% | 58Fair | $10.0B |
| GLBE Global-e Online Ltd. | 40.23 | 33.03 | -22% | 64Fair | $6.8B |
| VIPS Vipshop Holdings Limited | 12.86 | 210.66 | +94% | 84Prime | $6.1B |
| FIVE Five Below, Inc. | 223.23 | 225.38 | +1% | 79Good | $12.3B |
| DKS DICK'S Sporting Goods, Inc. | 140.84 | 163.52 | +14% | 76Good | $12.5B |
| GME GameStop Corp. | 28.02 | 38.65 | +28% | 72Good | $14.1B |
| W Wayfair Inc. | 104.78 | 83.75 | -25% | 44Weak | $14.4B |
| TSCO Tractor Supply Company | 32.74 | 21.97 | -49% | 67Good | $17.1B |
| BBWI Bath & Body Works, Inc. | 20.44 | 53.29 | +62% | 84Prime | $4.1B |
| BBY Best Buy Co., Inc. | 94.17 | 93.88 | -0% | 78Good | $19.8B |
| ASO Academy Sports and Outdoors, Inc. | 58.47 | 91.83 | +36% | 87Prime | $3.6B |
⚖ Compare CHWY with 7 of them All Consumer Cyclical stocks →
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Start free See the Sunday ScanQuestions about CHWY
Is CHWY undervalued right now?
By the GLS models, moderately: at 21.31 the stock trades 18% below the average fair value of 26.02 (data as of 16 Oct 2026).
What is the Wheel Score of CHWY and what does it mean?
CHWY scores 86 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CHWY?
26.02 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Chewy, Inc. report earnings next?
The next earnings report is due on 9 Dec 2026 (before the open), 54 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CHWY have listed options, and how liquid are they?
Yes. The nightly snapshot found 600 listed contracts with 239,831 open interest across all expiries and implied volatility of 50% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.