CHEGG INC (CHGG)
US1630921096 - Common Stock
Taking everything into account, CHGG scores 3 out of 10 in our fundamental rating. CHGG was compared to 66 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of CHGG have multiple concerns. CHGG is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CHGG had positive earnings in the past year.
CHGG had a positive operating cash flow in the past year.
In multiple years CHGG reported negative net income over the last 5 years.
In the past 5 years CHGG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.84%, CHGG perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
CHGG has a Return On Equity of 1.51%. This is in the better half of the industry: CHGG outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 1.51% | ||
| ROIC | N/A |
ROA(3y)3.94%
ROA(5y)2.18%
ROE(3y)8.56%
ROE(5y)4.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CHGG has a Profit Margin of 2.07%. This is in the better half of the industry: CHGG outperforms 60.94% of its industry peers.
CHGG has a better Gross Margin (68.60%) than 78.13% of its industry peers.
CHGG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 2.07% | ||
| GM | 68.6% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.34%
GM growth 5Y-1.73%
2. Health
2.1 Basic Checks
CHGG does not have a ROIC to compare to the WACC, probably because it is not profitable.
CHGG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHGG has less shares outstanding
Compared to 1 year ago, CHGG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
CHGG has a Altman-Z score (0.64) which is in line with its industry peers.
The Debt to FCF ratio of CHGG is 4.53, which is a neutral value as it means it would take CHGG, 4.53 years of fcf income to pay off all of its debts.
CHGG's Debt to FCF ratio of 4.53 is fine compared to the rest of the industry. CHGG outperforms 70.31% of its industry peers.
CHGG has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
CHGG's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. CHGG outperforms 51.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.53 | ||
| Altman-Z | 0.64 |
ROIC/WACCN/A
WACC5.33%
2.3 Liquidity
CHGG has a Current Ratio of 0.92. This is a bad value and indicates that CHGG is not financially healthy enough and could expect problems in meeting its short term obligations.
CHGG's Current ratio of 0.92 is on the low side compared to the rest of the industry. CHGG is outperformed by 71.88% of its industry peers.
A Quick Ratio of 0.92 indicates that CHGG may have some problems paying its short term obligations.
CHGG's Quick ratio of 0.92 is on the low side compared to the rest of the industry. CHGG is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for CHGG have decreased strongly by -12.90% in the last year.
Measured over the past years, CHGG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.08% on average per year.
Looking at the last year, CHGG shows a decrease in Revenue. The Revenue has decreased by -6.52% in the last year.
Measured over the past years, CHGG shows a quite strong growth in Revenue. The Revenue has been growing by 17.41% on average per year.
EPS 1Y (TTM)-12.9%
EPS 3Y-5.94%
EPS 5Y15.08%
EPS growth Q2Q-3.7%
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y3.59%
Revenue growth 5Y17.41%
Revenue growth Q2Q-7.06%
3.2 Future
CHGG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.01% yearly.
CHGG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.98% yearly.
EPS Next Y6%
EPS Next 2Y4.04%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue Next Year-4.01%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.98%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CHGG is valuated cheaply with a Price/Earnings ratio of 4.85.
Based on the Price/Earnings ratio, CHGG is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHGG to the average of the S&P500 Index (27.73), we can say CHGG is valued rather cheaply.
CHGG is valuated cheaply with a Price/Forward Earnings ratio of 4.44.
Based on the Price/Forward Earnings ratio, CHGG is valued cheaply inside the industry as 98.44% of the companies are valued more expensively.
CHGG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.85 | ||
| Fwd PE | 4.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHGG is valued cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHGG is valued cheaper than 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.02 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.81
PEG (5Y)0.32
EPS Next 2Y4.04%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHEGG INC
NYSE:CHGG (5/3/2024, 7:04:00 PM)
After market: 5.18 -0.06 (-1.15%)5.24
+0.03 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap532.23M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.85 | ||
| Fwd PE | 4.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.81
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 1.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 2.07% | ||
| GM | 68.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.9%
EPS 3Y-5.94%
EPS 5Y
EPS growth Q2Q
EPS Next Y6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y3.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y