CHEGG INC (CHGG)
US1630921096 - Common Stock
We assign a fundamental rating of 3 out of 10 to CHGG. CHGG was compared to 70 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of CHGG have multiple concerns. 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.
In multiple years CHGG reported negative net income over the last 5 years.
Each year in the past 5 years CHGG had a positive operating cash flow.
1.2 Ratios
CHGG's Return On Assets of -81.91% is on the low side compared to the rest of the industry. CHGG is outperformed by 90.48% of its industry peers.
Looking at the Return On Equity, with a value of -443.98%, CHGG is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -81.91% | ||
| ROE | -443.98% | ||
| ROIC | N/A |
ROA(3y)3.94%
ROA(5y)2.18%
ROE(3y)8.56%
ROE(5y)4.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Gross Margin value of 72.67%, CHGG belongs to the best of the industry, outperforming 84.13% 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 | 72.67% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.34%
GM growth 5Y-1.73%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHGG has less shares outstanding
The debt/assets ratio for CHGG has been reduced compared to a year ago.
2.2 Solvency
CHGG has an Altman-Z score of -0.54. 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 -0.54. This is in the lower half of the industry: CHGG underperforms 69.84% of its industry peers.
CHGG has a debt to FCF ratio of 6.19. This is a slightly negative value and a sign of low solvency as CHGG would need 6.19 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.19, CHGG is doing good in the industry, outperforming 61.90% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that CHGG has dependencies on debt financing.
CHGG has a Debt to Equity ratio of 1.31. This is in the lower half of the industry: CHGG underperforms 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | -0.54 |
ROIC/WACCN/A
WACC2.67%
2.3 Liquidity
A Current Ratio of 0.91 indicates that CHGG may have some problems paying its short term obligations.
The Current ratio of CHGG (0.91) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.91 indicates that CHGG may have some problems paying its short term obligations.
The Quick ratio of CHGG (0.91) is worse than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
CHGG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.93%.
Measured over the past years, CHGG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.08% on average per year.
Looking at the last year, CHGG shows a decrease in Revenue. The Revenue has decreased by -9.75% in the last year.
CHGG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.41% yearly.
EPS 1Y (TTM)-15.93%
EPS 3Y-5.94%
EPS 5Y15.08%
EPS Q2Q%-50%
Revenue 1Y (TTM)-9.75%
Revenue growth 3Y3.59%
Revenue growth 5Y17.41%
Sales Q2Q%-13.47%
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 -19.64% yearly.
Based on estimates for the next years, CHGG will show a very negative growth in Revenue. The Revenue will decrease by -13.97% on average per year.
EPS Next Y-29.5%
EPS Next 2Y-21.23%
EPS Next 3Y-19.64%
EPS Next 5YN/A
Revenue Next Year-13.72%
Revenue Next 2Y-14.74%
Revenue Next 3Y-13.97%
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
Based on the Price/Earnings ratio of 1.86, the valuation of CHGG can be described as very cheap.
Based on the Price/Earnings ratio, CHGG is valued cheaply inside the industry as 96.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.48, CHGG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 2.62, the valuation of CHGG can be described as very cheap.
Based on the Price/Forward Earnings ratio, CHGG is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, CHGG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.86 | ||
| Fwd PE | 2.62 |
4.2 Price Multiples
CHGG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CHGG is cheaper than 93.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHGG is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.9 | ||
| EV/EBITDA | 2.93 |
4.3 Compensation for Growth
A cheap valuation may be justified as CHGG's earnings are expected to decrease with -19.64% in the coming years.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-21.23%
EPS Next 3Y-19.64%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHEGG INC
NYSE:CHGG (1/6/2025, 4:01:25 PM)
After market: 1.77 0 (0%)1.77
+0.12 (+7.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners95.59%
Inst Owner Change0.02%
Ins Owners3.86%
Ins Owner Change-0.19%
Market Cap184.63M
Analysts50
Price Target1.9 (7.34%)
Short Float %9.42%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.68%
Min EPS beat(2)4.97%
Max EPS beat(2)14.38%
EPS beat(4)3
Avg EPS beat(4)4.81%
Min EPS beat(4)-2.85%
Max EPS beat(4)14.38%
EPS beat(8)6
Avg EPS beat(8)2.87%
EPS beat(12)10
Avg EPS beat(12)10%
EPS beat(16)12
Avg EPS beat(16)8.71%
Revenue beat(2)0
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-0.15%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.02%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)5
Avg Revenue beat(12)0.33%
Revenue beat(16)8
Avg Revenue beat(16)0.92%
PT rev (1m)0%
PT rev (3m)-42.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.12%
EPS NY rev (1m)1.53%
EPS NY rev (3m)-12.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-23.61%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.86 | ||
| Fwd PE | 2.62 | ||
| P/S | 0.28 | ||
| P/FCF | 1.9 | ||
| P/OCF | 1 | ||
| P/B | 1 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 2.93 |
EPS(TTM)0.95
EY53.67%
EPS(NY)0.68
Fwd EY38.21%
FCF(TTM)0.93
FCFY52.63%
OCF(TTM)1.77
OCFY99.97%
SpS6.35
BVpS1.77
TBVpS1.66
PEG (NY)N/A
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -81.91% | ||
| ROE | -443.98% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 72.67% | ||
| FCFM | 14.68% |
ROA(3y)3.94%
ROA(5y)2.18%
ROE(3y)8.56%
ROE(5y)4.54%
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 3Y0.34%
GM growth 5Y-1.73%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 6.19 | ||
| Debt/EBITDA | 3.51 | ||
| Cap/Depr | 109.56% | ||
| Cap/Sales | 13.2% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 266.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | -0.54 |
F-Score6
WACC2.67%
ROIC/WACCN/A
Cap/Depr(3y)107.52%
Cap/Depr(5y)137.37%
Cap/Sales(3y)13.02%
Cap/Sales(5y)14.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.93%
EPS 3Y-5.94%
EPS 5Y15.08%
EPS Q2Q%-50%
EPS Next Y-29.5%
EPS Next 2Y-21.23%
EPS Next 3Y-19.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.75%
Revenue growth 3Y3.59%
Revenue growth 5Y17.41%
Sales Q2Q%-13.47%
Revenue Next Year-13.72%
Revenue Next 2Y-14.74%
Revenue Next 3Y-13.97%
Revenue Next 5YN/A
EBIT growth 1Y84.02%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1.63%
EBIT Next 3Y-8.04%
EBIT Next 5YN/A
FCF growth 1Y-28.77%
FCF growth 3Y19.13%
FCF growth 5Y30.02%
OCF growth 1Y-25.21%
OCF growth 3Y1.36%
OCF growth 5Y26.8%