CHWYNEUTRAL

Return on Equity (ROE)

63.8%

Higher than 98% of Consumer Cyclical sector peers

Updated 22h ago

Sector Performance

98th percentile

CHWY

63.8%

Sector Median

8.7%

Sector Avg

-37.7%

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Deep Analysis

Chewy’s Return on Equity (ROE) of 63.8% means that for every dollar of shareholders’ equity, the company generated about $0.64 in profit over the latest period — a measure of how efficiently it uses invested capital.

This far exceeds the sector median of 8.7% and places Chewy in the 98th percentile among consumer cyclical peers, indicating exceptional profitability relative to its industry. The year-over-year change is not available, but the quarter-over-quarter change is +42.7%, moving from 44.7% to 63.8% — a sharp increase over the only two data points available. While the level is extremely high and the trend is positive, the limited history (just two quarters) means the sustainability of these returns is unconfirmed, introducing uncertainty rather than a clear opportunity. This strong ROE contradicts the overall NEUTRAL verdict, as such a high and rapidly improving metric typically signals above-average performance that would warrant a more bullish rating.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CHWY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does CHWY's Return on Equity (ROE) compare to its sector?

CHWY's Return on Equity (ROE) of 63.8% compares to a Consumer Cyclical sector median of 8.7%, placing it in the 98th percentile.

Who are CHWY's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: LI (-2.5%), XPEV (-3.6%), HMC (-3.8%), CROX (-6.1%), CZR (-10.7%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.