Chewy vs Ulta Beauty
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KIRA’s take AI analyst
I put Chewy and Ulta Beauty side by side, using each one’s latest annual report. Here is what stands out:
- Chewy is the larger business, with $12.6B of revenue in fiscal 2025 against $12.4B for Ulta Beauty.
- Ulta Beauty grew revenue faster (9.7%, against 6.2%).
- Ulta Beauty kept more of each dollar of sales as operating profit (12.4% operating margin, against 2.0%).
- Ulta Beauty turned more of its sales into free cash flow (8.6% FCF margin, against 4.5%).
- Investors pay more for each dollar of Chewy’s earnings: a P/E of 33.2x against 22.8x for Ulta Beauty.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Chewy
CHWY
3/10
Return on equityPiotroski F-scoreNet debt / EBITDA
Ulta Beauty
ULTA
7/10
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginShare count change
Side by side
Best in the row
| Latest fiscal year | CHWY FY25 | ULTA FY25 |
|---|---|---|
| Size | ||
| Market cap | $9.0B | $27.0B |
| Revenue | $12.6B | $12.4B |
| Free cash flow | $562M | $1.1B |
| Net income | $223M | $1.2B |
| Growth | ||
| Revenue growth | 6.2% | 9.7% |
| 5-year growth | 12.0% | 15.0% |
| Share count change | −1.2% | −5.1% |
| Profitability | ||
| Gross margin | 29.8% | 39.1% |
| Operating margin | 2.0% | 12.4% |
| Net margin | 1.8% | 9.3% |
| FCF margin | 4.5% | 8.6% |
| Return on capital | — | 55.8% |
| Return on equity | 58.7% | 43.6% |
| Balance sheet | ||
| Net debt | −$879M | −$432M |
| Net debt / EBITDA | −2.3x | −0.2x |
| Dividends and buybacks | $263M | $901M |
| Valuation & quality | ||
| P/E | 33.2x | 22.8x |
| Piotroski F-score | 7 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.