logologo
  • ENG
    • Русский
    • English
  • All Investment Ideas
    $204 mln$423 mln$901 mln$2104 mln$3533 mln

    Chewy

    Largest pure-play pet e-tailer
    IPO
    Medium risk

    Revenues in 2014-2018

    Invest in Chewy

    This investment idea is no longer available. New applications are not accepted

    View more ideas
    Investment Idea Details
    The Company

    Chewy is the largest pure-play pet e-tailer in the United States. They partner with more than 1,600 of the best and most trusted brands in the pet industry, and create and offer their own private brands.

    From fiscal year 2012 to fiscal year 2018, our net sales per active customer grew from $223 to $334 and our net sales grew from $26 million to $3.5 billion. In addition, Autoship customer sales have grown from $115 million in fiscal year 2014 to $2.3 billion in fiscal year 2018.

    Market Opportunity

    The pet industry in the United States—including food, supplies, veterinary services, and non-medical services—is a growing and highly-attractive market, with 2017 sales reaching approximately $70 billion.

    According to Packaged Facts, spending on pet products and services grew at a 5.4% CAGR from 2012 to 2017 and is projected to continue its historically consistent growth at a 4.2% CAGR from 2017 to 2022

    Risks

    Company has incurred operating losses in the past, expect to incur operating losses in the future and may never achieve or maintain profitability.

    Large IPO - the company is planning to raise almost $800M at the valuation of $7.6B, which is a negative factor for the first day return.

    Competition in the pet products and services retail industry, especially Internet-based competition, is strong and presents an ongoing threat to the success of their business.

    Financials

    Currently, the average EV/Sales multiple in the US retail sector is 3.32x.

    If Chewy goes public at the top of the price range of $19, its EV/Sales will equal 2x at IPO. Based on the above, Chewy is undervalued vs average industry multiples. Considering risks and adverse factors, the expected investment gain would be around +20%.

    How IPO Investments Work
    1. Collection of funds

    2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

    Publication
    11 Jun
    Threshold amount
    $50
    2. Buy shares

    We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

    Submit applications before
    13 Jun
    3. Start Bidding

    The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

    Start Bidding
    14 Jun
    Return forecast
    +20%
    4. Receiving profit

    After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

    End
    17 Sep
    Early profit fixation

    Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

    From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

    The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

    Fee

    FOR ENTRY

    3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

    FOR EXIT

    1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

    SUCCESS

    20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

    TO EARLY EXIT

    Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

    Advantages Enjoyed by Those Investing with United Traders

    RELIABILITY

    Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.

    IN THE PROFIT FROM THE FIRST DAY

    Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

    LOW ENTRY THRESHOLD

    Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

    Invest in Chewy

    This investment idea is no longer available. New applications are not accepted

    View more ideas