CHEGG INC (CHGG) Stock Fundamental Analysis
USA - NYSE:CHGG - US1630921096 - Common Stock
0.9372 USD
0 (-0.46%)
0.94 USD
+0 (+0.3%)
Taking everything into account, CHGG scores 3 out of 10 in our fundamental rating. CHGG was compared to 78 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CHGG was profitable.
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 83.33% of its industry peers.
Looking at the Return On Equity, with a value of -172.25%, CHGG is doing worse than 75.64% of the companies in the same industry.
| 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
CHGG has a better Gross Margin (65.03%) than 76.92% 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 | 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.
Compared to 5 years ago, CHGG has less shares outstanding
CHGG has a worse debt/assets ratio than last year.
2.2 Solvency
CHGG has an Altman-Z score of -2.46. This is a bad value and indicates that CHGG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CHGG (-2.46) is worse than 74.36% 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 | -2.46 |
ROIC/WACCN/A
WACC2.53%
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 62.82% of its industry peers.
CHGG has a Quick Ratio of 0.90. This is a bad value and indicates that CHGG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CHGG (0.90) is worse than 60.26% 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.
Measured over the past years, CHGG shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.54% on average per year.
The Revenue for CHGG has decreased by -25.87% in the past year. This is quite bad
Measured over the past years, CHGG shows a quite strong growth in Revenue. The Revenue has been growing by 8.49% on average per year.
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
Based on estimates for the next years, CHGG will show a very negative growth in Earnings Per Share. The EPS will decrease by -47.15% on average per year.
The Revenue is expected to decrease by -18.59% on average over the next years. This is quite bad
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
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
The Price/Earnings ratio is 3.12, which indicates a rather cheap valuation of CHGG.
96.15% of the companies in the same industry are more expensive than CHGG, based on the Price/Earnings ratio.
CHGG is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.60, the valuation of CHGG can be described as reasonable.
Based on the Price/Forward Earnings ratio, CHGG is valued cheaper than 87.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CHGG to the average of the S&P500 Index (22.27), we can say CHGG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.12 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHGG is valued cheaper than 96.15% of the companies in the same industry.
CHGG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CHGG is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.14 | ||
| EV/EBITDA | 3.12 |
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 |
0.9372
0 (-0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners49.45%
Inst Owner Change-0.81%
Ins Owners3.2%
Ins Owner Change-1.22%
Market Cap101.53M
Revenue(TTM)506.58M
Net Income(TTM)-271911000
Analysts45
Price Target0.84 (-10.37%)
Short Float %6.95%
Short Ratio1.98
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-212.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-280%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.12 | ||
| Fwd PE | 10.6 | ||
| P/S | 0.2 | ||
| P/FCF | 3.14 | ||
| P/OCF | 1.31 | ||
| P/B | 0.64 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 3.12 |
EPS(TTM)0.3
EY32.01%
EPS(NY)0.09
Fwd EY9.43%
FCF(TTM)0.3
FCFY31.83%
OCF(TTM)0.71
OCFY76.18%
SpS4.68
BVpS1.46
TBVpS1.38
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.14
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
ROICexgc growth 3YN/A
ROICexgc 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 | -2.46 |
F-Score6
WACC2.53%
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-17.47%
EBIT Next 3Y-1.51%
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%
CHEGG INC / CHGG FAQ
Can you provide the ChartMill fundamental rating for CHEGG INC?
ChartMill assigns a fundamental rating of 3 / 10 to CHGG.
What is the valuation status of CHEGG INC (CHGG) stock?
ChartMill assigns a valuation rating of 7 / 10 to CHEGG INC (CHGG). This can be considered as Undervalued.
How profitable is CHEGG INC (CHGG) stock?
CHEGG INC (CHGG) has a profitability rating of 2 / 10.
How financially healthy is CHEGG INC?
The financial health rating of CHEGG INC (CHGG) is 4 / 10.