Chewy Beneish M Score

CHWY -  USA Stock  

USD 44.86  1.23  2.67%

This module uses fundamental data of Chewy to approximate the value of its Beneish M Score. Chewy M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Chewy Piotroski F Score and Chewy Altman Z Score analysis.

Chewy Beneish M Score 

 
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Total Debt is likely to drop to about 351.7 M in 2022. Debt Non Current is likely to drop to about 351.7 M in 2022.
At this time, it appears that Chewy Inc is an unlikely manipulator. The earnings manipulation may begin if Chewy's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Chewy executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Chewy's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.03
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.08
Asset Quality
N/A
Expense Coverage
1.0
Gross Margin Strengs
1.27
Accruals Factor
1.0
Depreciation Resistance
1.05
Net Sales Growth
1.03
Financial Leverage Condition
1.09

Chewy Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Chewy's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues924.3 M900.6 M
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense264 M257.3 M
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations7.4 M7.3 M
Fairly Up
Decreasing
Very volatile
Depreciation Amortization and Accretion5.2 MM
Fairly Up
Decreasing
Slightly volatile
Total Assets1.6 BB
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net629.4 M583.3 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables100.5 M90.6 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities1.7 BB
Fairly Down
Increasing
Slightly volatile
Current Assets1.1 B1.4 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current637.9 M591.3 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities1.4 B1.6 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current449.2 M416.4 M
Significantly Up
Increasing
Slightly volatile
Total Debt351.7 M377.5 M
Significantly Down
Increasing
Slightly volatile
Debt Non Current351.7 M377.5 M
Significantly Down
Increasing
Slightly volatile
Gross Margin0.210.166
Significantly Up
Decreasing
Slightly volatile

Chewy Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Chewy's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Chewy in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Chewy's degree of accounting gimmicks and manipulations.

About Chewy Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

5.18 MillionShare
Chewy Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Chewy reported Depreciation Amortization and Accretion of 5.04 Million in 2021

About Chewy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Chewy Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Chewy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Chewy Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. The company was founded in 2010 and is headquartered in Dania Beach, Florida. Chewy operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 18500 people.

Chewy Investors Sentiment

The influence of Chewy's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Chewy. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Chewy Implied Volatility

    
  73.14  
Chewy's implied volatility exposes the market's sentiment of Chewy Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Chewy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Chewy stock will not fluctuate a lot when Chewy's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Chewy in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Chewy's short interest history, or implied volatility extrapolated from Chewy options trading.

Current Sentiment - CHWY

Chewy Inc Investor Sentiment

Macroaxis portfolio users are unresponsive in their opinion about investing in Chewy Inc. What is your opinion about investing in Chewy Inc? Are you bullish or bearish?
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Pair Trading with Chewy

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chewy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chewy will appreciate offsetting losses from the drop in the long position's value.

Chewy Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Chewy and Farfetch Ltd Cl. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  
Continue to Chewy Piotroski F Score and Chewy Altman Z Score analysis. Note that the Chewy Inc information on this page should be used as a complementary analysis to other Chewy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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Is Chewy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chewy. If investors know Chewy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chewy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Chewy Inc is measured differently than its book value, which is the value of Chewy that is recorded on the company's balance sheet. Investors also form their own opinion of Chewy's value that differs from its market value or its book value, called intrinsic value, which is Chewy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chewy's market value can be influenced by many factors that don't directly affect Chewy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chewy's value and its price as these two are different measures arrived at by different means. Investors typically determine Chewy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chewy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.