CHEGG INC (CHGG) Stock Fundamental Analysis
NYSE:CHGG - New York Stock Exchange, Inc. - US1630921096 - Common Stock - Currency: USD
CHGG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 72 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 is cheap, but on the other hand it scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: CHGG reported negative net income in multiple 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 -194.44%, CHGG is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
With a Return On Equity value of -459.49%, CHGG is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -194.44% | ||
| ROE | -459.49% | ||
| 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
Looking at the Gross Margin, with a value of 66.77%, CHGG belongs to the top of the industry, outperforming 81.94% of the companies in the same industry.
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 | 66.77% |
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.
CHGG has more 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 a worse debt to assets ratio.
2.2 Solvency
CHGG has an Altman-Z score of -1.50. This is a bad value and indicates that CHGG is not financially healthy and even has some risk of bankruptcy.
CHGG has a Altman-Z score of -1.50. This is in the lower half of the industry: CHGG underperforms 70.83% of its industry peers.
The Debt to FCF ratio of CHGG is 1.53, which is an excellent value as it means it would take CHGG, only 1.53 years of fcf income to pay off all of its debts.
CHGG's Debt to FCF ratio of 1.53 is amongst the best of the industry. CHGG outperforms 83.33% of its industry peers.
CHGG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
CHGG's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. CHGG outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | -1.5 |
ROIC/WACCN/A
WACC4.05%
2.3 Liquidity
CHGG has a Current Ratio of 1.23. This is a normal value and indicates that CHGG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.23, CHGG is in line with its industry, outperforming 51.39% of the companies in the same industry.
CHGG has a Quick Ratio of 1.23. This is a normal value and indicates that CHGG is financially healthy and should not expect problems in meeting its short term obligations.
CHGG's Quick ratio of 1.23 is in line compared to the rest of the industry. CHGG outperforms 52.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for CHGG have decreased strongly by -59.26% in the last year.
CHGG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.54% yearly.
CHGG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.70%.
The Revenue has been growing by 8.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-59.26%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-123.08%
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-30.38%
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 -41.39% yearly.
The Revenue is expected to decrease by -13.76% on average over the next years. This is quite bad
EPS Next Y-98.32%
EPS Next 2Y-58.77%
EPS Next 3Y-41.39%
EPS Next 5YN/A
Revenue Next Year-32.58%
Revenue Next 2Y-21.79%
Revenue Next 3Y-13.76%
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
A Price/Earnings ratio of 3.86 indicates a rather cheap valuation of CHGG.
Based on the Price/Earnings ratio, CHGG is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHGG to the average of the S&P500 Index (27.53), we can say CHGG is valued rather cheaply.
The Price/Forward Earnings ratio is 13.16, which indicates a correct valuation of CHGG.
Based on the Price/Forward Earnings ratio, CHGG is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CHGG to the average of the S&P500 Index (36.71), we can say CHGG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.86 | ||
| Fwd PE | 13.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHGG indicates a rather cheap valuation: CHGG is cheaper than 97.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CHGG is valued cheaper than 98.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.44 | ||
| EV/EBITDA | 3.28 |
4.3 Compensation for Growth
A cheap valuation may be justified as CHGG's earnings are expected to decrease with -41.39% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-58.77%
EPS Next 3Y-41.39%
5. Dividend
5.1 Amount
CHGG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.7
+0.33 (+24.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners63.65%
Inst Owner Change-0.44%
Ins Owners3.17%
Ins Owner Change-0.91%
Market Cap181.17M
Analysts45
Price Target0.84 (-50.59%)
Short Float %4.85%
Short Ratio1.22
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)0
Avg EPS beat(2)-1522.97%
Min EPS beat(2)-3041.18%
Max EPS beat(2)-4.76%
EPS beat(4)2
Avg EPS beat(4)-756.65%
Min EPS beat(4)-3041.18%
Max EPS beat(4)14.38%
EPS beat(8)4
Avg EPS beat(8)-378.68%
EPS beat(12)8
Avg EPS beat(12)-247.1%
EPS beat(16)11
Avg EPS beat(16)-182.13%
Revenue beat(2)1
Avg Revenue beat(2)1.43%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)3.84%
Revenue beat(4)1
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)3.84%
Revenue beat(8)3
Avg Revenue beat(8)0.32%
Revenue beat(12)5
Avg Revenue beat(12)0.34%
Revenue beat(16)7
Avg Revenue beat(16)0.36%
PT rev (1m)0%
PT rev (3m)-29.79%
EPS NQ rev (1m)-60.71%
EPS NQ rev (3m)-175%
EPS NY rev (1m)0%
EPS NY rev (3m)-89.22%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)-6.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.86 | ||
| Fwd PE | 13.16 | ||
| P/S | 0.32 | ||
| P/FCF | 4.44 | ||
| P/OCF | 1.88 | ||
| P/B | 0.98 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 3.28 |
EPS(TTM)0.44
EY25.88%
EPS(NY)0.13
Fwd EY7.6%
FCF(TTM)0.38
FCFY22.53%
OCF(TTM)0.9
OCFY53.22%
SpS5.3
BVpS1.74
TBVpS1.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -194.44% | ||
| ROE | -459.49% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 66.77% | ||
| FCFM | 7.23% |
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-Score4
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 61.27% | ||
| Cap/Sales | 9.85% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 284.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | -1.5 |
F-Score4
WACC4.05%
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)-59.26%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-123.08%
EPS Next Y-98.32%
EPS Next 2Y-58.77%
EPS Next 3Y-41.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-30.38%
Revenue Next Year-32.58%
Revenue Next 2Y-21.79%
Revenue Next 3Y-13.76%
Revenue Next 5YN/A
EBIT growth 1Y4.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-10.2%
EBIT Next 3Y-14.33%
EBIT Next 5YN/A
FCF growth 1Y-74.17%
FCF growth 3Y-33.14%
FCF growth 5Y-6.71%
OCF growth 1Y-61.26%
OCF growth 3Y-22.9%
OCF growth 5Y2%