CHEGG INC (CHGG) Stock Fundamental Analysis
NYSE:CHGG - New York Stock Exchange, Inc. - US1630921096 - Common Stock - Currency: USD
Overall CHGG gets a fundamental rating of 3 out of 10. We evaluated CHGG against 71 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 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.
In the past year CHGG had a positive cash flow from operations.
In multiple years CHGG reported negative net income over the last 5 years.
CHGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -194.44%, CHGG is doing worse than 91.55% of the companies in the same industry.
CHGG's Return On Equity of -459.49% is on the low side compared to the rest of the industry. CHGG is outperformed by 78.87% of its industry peers.
| 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
CHGG has a Gross Margin of 66.77%. This is amongst the best in the industry. CHGG outperforms 83.10% of its industry peers.
CHGG's Gross Margin has declined in the last couple of years.
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.
Compared to 1 year ago, CHGG has more shares outstanding
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 -1.58. This is a bad value and indicates that CHGG is not financially healthy and even has some risk of bankruptcy.
CHGG's Altman-Z score of -1.58 is on the low side compared to the rest of the industry. CHGG is outperformed by 71.83% of its industry peers.
CHGG has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.53, CHGG belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
CHGG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
CHGG has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: CHGG outperforms 43.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | -1.58 |
ROIC/WACCN/A
WACC3.28%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CHGG should not have too much problems paying its short term obligations.
CHGG's Current ratio of 1.23 is in line compared to the rest of the industry. CHGG outperforms 50.70% of its industry peers.
A Quick Ratio of 1.23 indicates that CHGG should not have too much problems paying its short term obligations.
CHGG has a Quick ratio of 1.23. This is comparable to the rest of the industry: CHGG outperforms 52.11% 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.
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%.
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
The Earnings Per Share is expected to decrease by -41.39% on average over the next years. This is quite bad
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 3.14, the valuation of CHGG can be described as very cheap.
CHGG's Price/Earnings ratio is rather cheap when compared to the industry. CHGG is cheaper than 95.77% of the companies in the same industry.
CHGG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 10.68, the valuation of CHGG can be described as reasonable.
Based on the Price/Forward Earnings ratio, CHGG is valued cheaper than 90.14% of the companies in the same industry.
CHGG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.14 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
CHGG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CHGG is cheaper than 98.59% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHGG indicates a rather cheap valuation: CHGG is cheaper than 98.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.6 | ||
| EV/EBITDA | 2.27 |
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 |
1.38
+0.17 (+14.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners63.65%
Inst Owner Change-15.76%
Ins Owners3.17%
Ins Owner Change5.65%
Market Cap147.07M
Analysts42
Price Target0.84 (-39.13%)
Short Float %7.63%
Short Ratio2.01
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)-33.11%
PT rev (3m)-38.43%
EPS NQ rev (1m)37.78%
EPS NQ rev (3m)-153.33%
EPS NY rev (1m)-43.18%
EPS NY rev (3m)-98.01%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)-7.38%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.14 | ||
| Fwd PE | 10.68 | ||
| P/S | 0.26 | ||
| P/FCF | 3.6 | ||
| P/OCF | 1.53 | ||
| P/B | 0.79 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 2.27 |
EPS(TTM)0.44
EY31.88%
EPS(NY)0.13
Fwd EY9.36%
FCF(TTM)0.38
FCFY27.75%
OCF(TTM)0.9
OCFY65.56%
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 | -1.58 |
F-Score4
WACC3.28%
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%