Dont think Chewy competes in UK yet (vs what table from Gemini is saying). Why not buy Chewy instead? Trades like 7-8x fwd EV/EBITDA and #1 specialty leader in the space (minus AMZN ofc); got no physical footprint exposure to worry about like PETS; driving better group ROIC via diversifying into health (ie vet clinics)... Wayfair trades at ~15x and probs at worse cash conversion cycle + ROIC. Just food for thought. Thanks
Thanks for write up mate.
Dont think Chewy competes in UK yet (vs what table from Gemini is saying). Why not buy Chewy instead? Trades like 7-8x fwd EV/EBITDA and #1 specialty leader in the space (minus AMZN ofc); got no physical footprint exposure to worry about like PETS; driving better group ROIC via diversifying into health (ie vet clinics)... Wayfair trades at ~15x and probs at worse cash conversion cycle + ROIC. Just food for thought. Thanks
Thanks for highlighting!
I prioritised PETS. Chewy and Wayfair have somewhat high short interest: 12% and 14%.
That said, they look interesting too. Just need more work on understanding the short sellers' case and making sure I'm not missing anything important.