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. While CHGG seems to be doing ok healthwise, there are quite some concerns on its profitability. CHGG has a bad growth rate and is valued cheaply.
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.
CHGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHGG's Return On Assets of -194.44% is on the low side compared to the rest of the industry. CHGG is outperformed by 91.67% of its industry peers.
Looking at the Return On Equity, with a value of -459.49%, CHGG is doing worse than 77.78% of the companies in the same industry.
| 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
With an excellent Gross Margin value of 66.77%, CHGG belongs to the best of the industry, outperforming 81.94% of the companies in the same industry.
CHGG's Gross Margin has declined in the last couple of years.
CHGG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
The number of shares outstanding for CHGG has been increased compared to 1 year ago.
The number of shares outstanding for CHGG has been reduced compared to 5 years ago.
CHGG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -1.53, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.53, CHGG is doing worse than 70.83% of the companies in the same industry.
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 has a better Debt to FCF ratio (1.53) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that CHGG is not too dependend on debt financing.
CHGG has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | -1.53 |
ROIC/WACCN/A
WACC3.84%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CHGG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.23, CHGG perfoms like the industry average, 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.
With a Quick ratio value of 1.23, CHGG perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
CHGG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.26%.
The Earnings Per Share has been decreasing by -3.54% on average over the past years.
CHGG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.70%.
CHGG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.49% yearly.
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
Based on estimates for the next years, CHGG will show a very negative growth in Earnings Per Share. The EPS will decrease by -41.39% on average per year.
CHGG is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.76% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.40, the valuation of CHGG can be described as very cheap.
Based on the Price/Earnings ratio, CHGG is valued cheaper than 95.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.69. CHGG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.57, the valuation of CHGG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CHGG is valued cheaply inside the industry as 86.11% 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 37.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.4 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
CHGG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CHGG is cheaper than 98.61% of the companies 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 | 3.9 | ||
| EV/EBITDA | 2.93 |
4.3 Compensation for Growth
CHGG's earnings are expected to decrease with -41.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-58.77%
EPS Next 3Y-41.39%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:CHGG (7/24/2025, 3:52:58 PM)
1.495
-0.09 (-5.97%)
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 Cap159.32M
Analysts45
Price Target0.84 (-43.81%)
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 | 3.4 | ||
| Fwd PE | 11.57 | ||
| P/S | 0.28 | ||
| P/FCF | 3.9 | ||
| P/OCF | 1.65 | ||
| P/B | 0.86 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 2.93 |
EPS(TTM)0.44
EY29.43%
EPS(NY)0.13
Fwd EY8.64%
FCF(TTM)0.38
FCFY25.62%
OCF(TTM)0.9
OCFY60.51%
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 | -1.53 |
F-Score4
WACC3.84%
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%