CHEGG INC (CHGG) Stock Fundamental Analysis
NYSE:CHGG - US1630921096 - Common Stock
1.71 USD
+0.04 (+2.4%)
1.7 USD
-0.01 (-0.58%)
We assign a fundamental rating of 3 out of 10 to CHGG. CHGG was compared to 73 industry peers in the Diversified Consumer Services industry. The financial health of CHGG is average, but there are quite some concerns on its profitability. CHGG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CHGG had positive earnings in the past year.
In the past year CHGG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CHGG reported negative net income in multiple years.
Each year in the past 5 years CHGG had a positive operating cash flow.
1.2 Ratios
CHGG's Return On Assets of -67.23% is on the low side compared to the rest of the industry. CHGG is outperformed by 86.30% of its industry peers.
With a Return On Equity value of -172.25%, CHGG is not doing good in the industry: 78.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -67.23% | ||
| ROE | -172.25% | ||
| ROIC | N/A |
ROA(3y)-28.15%
ROA(5y)-16.96%
ROE(3y)-135.99%
ROE(5y)-81.82%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of CHGG (65.03%) is better than 78.08% of its industry peers.
In the last couple of years the Gross Margin of CHGG has declined.
The Profit Margin and Operating Margin are not available for CHGG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65.03% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y-1.8%
2. Health
2.1 Basic Checks
CHGG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CHGG has more shares outstanding
Compared to 5 years ago, CHGG has less shares outstanding
The debt/assets ratio for CHGG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -2.26, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
CHGG has a Altman-Z score of -2.26. This is in the lower half of the industry: CHGG underperforms 78.08% of its industry peers.
There is no outstanding debt for CHGG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | -2.26 |
ROIC/WACCN/A
WACC4.04%
2.3 Liquidity
A Current Ratio of 0.90 indicates that CHGG may have some problems paying its short term obligations.
The Current ratio of CHGG (0.90) is worse than 64.38% of its industry peers.
A Quick Ratio of 0.90 indicates that CHGG may have some problems paying its short term obligations.
CHGG has a Quick ratio of 0.90. This is in the lower half of the industry: CHGG underperforms 63.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for CHGG have decreased strongly by -71.15% in the last year.
The Earnings Per Share has been decreasing by -3.54% on average over the past years.
The Revenue for CHGG has decreased by -25.87% in the past year. This is quite bad
The Revenue has been growing by 8.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-71.15%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-58.33%
Revenue 1Y (TTM)-25.87%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-35.57%
3.2 Future
CHGG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -47.15% yearly.
Based on estimates for the next years, CHGG will show a very negative growth in Revenue. The Revenue will decrease by -18.59% on average per year.
EPS Next Y-103.02%
EPS Next 2Y-65.89%
EPS Next 3Y-47.15%
EPS Next 5YN/A
Revenue Next Year-37.26%
Revenue Next 2Y-28.03%
Revenue Next 3Y-18.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 5.70, the valuation of CHGG can be described as very cheap.
Based on the Price/Earnings ratio, CHGG is valued cheaper than 93.15% of the companies in the same industry.
CHGG is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
CHGG is valuated rather expensively with a Price/Forward Earnings ratio of 19.34.
Based on the Price/Forward Earnings ratio, CHGG is valued a bit cheaper than the industry average as 67.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, CHGG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.7 | ||
| Fwd PE | 19.34 |
4.2 Price Multiples
CHGG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CHGG is cheaper than 63.01% of the companies in the same industry.
94.52% of the companies in the same industry are more expensive than CHGG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.73 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
CHGG's earnings are expected to decrease with -47.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-65.89%
EPS Next 3Y-47.15%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.71
+0.04 (+2.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners62.92%
Inst Owner Change-20.89%
Ins Owners3.28%
Ins Owner Change-1.63%
Market Cap185.24M
Analysts45
Price Target0.84 (-50.88%)
Short Float %5.47%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1252.72%
Min EPS beat(2)-3041.18%
Max EPS beat(2)535.73%
EPS beat(4)2
Avg EPS beat(4)-623.96%
Min EPS beat(4)-3041.18%
Max EPS beat(4)535.73%
EPS beat(8)5
Avg EPS beat(8)-311.19%
EPS beat(12)8
Avg EPS beat(12)-203%
EPS beat(16)11
Avg EPS beat(16)-149.49%
Revenue beat(2)1
Avg Revenue beat(2)1.89%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)3.84%
Revenue beat(4)1
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)3.84%
Revenue beat(8)2
Avg Revenue beat(8)0.11%
Revenue beat(12)4
Avg Revenue beat(12)0.28%
Revenue beat(16)6
Avg Revenue beat(16)0.21%
PT rev (1m)0%
PT rev (3m)-33.11%
EPS NQ rev (1m)-212.5%
EPS NQ rev (3m)-1976.88%
EPS NY rev (1m)-280%
EPS NY rev (3m)-202.27%
Revenue NQ rev (1m)-15.2%
Revenue NQ rev (3m)-24.31%
Revenue NY rev (1m)-6.93%
Revenue NY rev (3m)-8.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.7 | ||
| Fwd PE | 19.34 | ||
| P/S | 0.37 | ||
| P/FCF | 5.73 | ||
| P/OCF | 2.4 | ||
| P/B | 1.17 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)0.3
EY17.54%
EPS(NY)0.09
Fwd EY5.17%
FCF(TTM)0.3
FCFY17.44%
OCF(TTM)0.71
OCFY41.75%
SpS4.68
BVpS1.46
TBVpS1.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -67.23% | ||
| ROE | -172.25% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65.03% | ||
| FCFM | 6.38% |
ROA(3y)-28.15%
ROA(5y)-16.96%
ROE(3y)-135.99%
ROE(5y)-81.82%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y-1.8%
F-Score6
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 51.6% | ||
| Cap/Sales | 8.89% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 803.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | -2.26 |
F-Score6
WACC4.04%
ROIC/WACCN/A
Cap/Depr(3y)92.13%
Cap/Depr(5y)128.49%
Cap/Sales(3y)12.56%
Cap/Sales(5y)14.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-71.15%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-58.33%
EPS Next Y-103.02%
EPS Next 2Y-65.89%
EPS Next 3Y-47.15%
EPS Next 5YN/A
Revenue 1Y (TTM)-25.87%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-35.57%
Revenue Next Year-37.26%
Revenue Next 2Y-28.03%
Revenue Next 3Y-18.59%
Revenue Next 5YN/A
EBIT growth 1Y-106.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-11.3%
EBIT Next 3Y-6.48%
EBIT Next 5YN/A
FCF growth 1Y-80.78%
FCF growth 3Y-33.14%
FCF growth 5Y-6.71%
OCF growth 1Y-68.79%
OCF growth 3Y-22.9%
OCF growth 5Y2%