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 71 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.
In the past 5 years CHGG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CHGG (-67.23%) is worse than 85.92% of its industry peers.
The Return On Equity of CHGG (-172.25%) is worse than 74.65% of its industry peers.
| 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 81.69% 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.
The number of shares outstanding for CHGG has been increased compared to 1 year ago.
CHGG has less shares outstanding than it did 5 years ago.
CHGG has a worse debt/assets ratio than last year.
2.2 Solvency
CHGG has an Altman-Z score of -2.39. This is a bad value and indicates that CHGG is not financially healthy and even has some risk of bankruptcy.
CHGG has a worse Altman-Z score (-2.39) than 76.06% 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 | -2.39 |
ROIC/WACCN/A
WACC3.15%
2.3 Liquidity
A Current Ratio of 0.90 indicates that CHGG may have some problems paying its short term obligations.
CHGG has a worse Current ratio (0.90) than 61.97% 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 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
CHGG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.15%.
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 -25.87%.
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
The Earnings Per Share is expected to decrease by -41.39% on average over the next years. This is quite bad
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.
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 4.10, the valuation of CHGG can be described as very cheap.
Based on the Price/Earnings ratio, CHGG is valued cheaper than 95.77% of the companies in the same industry.
CHGG is valuated cheaply when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
CHGG is valuated reasonably with a Price/Forward Earnings ratio of 9.52.
90.14% of the companies in the same industry are more expensive than CHGG, based on the Price/Forward Earnings ratio.
CHGG is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.1 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHGG is valued cheaper than 87.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHGG is valued cheaply inside the industry as 98.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.12 | ||
| EV/EBITDA | 6.37 |
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 |
1.23
-0.03 (-2.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners62.92%
Inst Owner Change-20.95%
Ins Owners3.28%
Ins Owner Change-0.91%
Market Cap133.25M
Analysts45
Price Target0.84 (-31.71%)
Short Float %5.33%
Short Ratio1.32
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)0%
EPS NY rev (3m)-89.22%
Revenue NQ rev (1m)-15.2%
Revenue NQ rev (3m)-24.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.1 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.26 | ||
| P/FCF | 4.12 | ||
| P/OCF | 1.72 | ||
| P/B | 0.84 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)0.3
EY24.39%
EPS(NY)0.13
Fwd EY10.5%
FCF(TTM)0.3
FCFY24.25%
OCF(TTM)0.71
OCFY58.05%
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 | -2.39 |
F-Score6
WACC3.15%
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-98.32%
EPS Next 2Y-58.77%
EPS Next 3Y-41.39%
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-32.58%
Revenue Next 2Y-21.79%
Revenue Next 3Y-13.76%
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%