CHEGG INC (CHGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHGG - US1630921096 - Common Stock
0.8883 USD
-0.06 (-6.47%)
0.9101 USD
+0.02 (+2.45%)
CHGG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 77 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 correctly, 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.
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 has a worse Return On Assets (-20.29%) than 70.13% of its industry peers.
Looking at the Return On Equity, with a value of -52.54%, CHGG is doing worse than 67.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.29% | ||
| ROE | -52.54% | ||
| 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's Gross Margin of 63.25% is fine compared to the rest of the industry. CHGG outperforms 76.62% 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 | 63.25% |
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
The debt/assets ratio for CHGG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -2.67, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -2.67, CHGG is not doing good in the industry: 75.32% of the companies in the same industry are doing better.
CHGG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | -2.67 |
ROIC/WACCN/A
WACC2.44%
2.3 Liquidity
CHGG has a Current Ratio of 0.95. 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 Current ratio of CHGG (0.95) is worse than 61.04% of its industry peers.
A Quick Ratio of 0.95 indicates that CHGG may have some problems paying its short term obligations.
CHGG has a Quick ratio (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for CHGG have decreased strongly by -77.89% 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 -32.37% 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)-77.89%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-100%
Revenue 1Y (TTM)-32.37%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-43.08%
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 -34.44% yearly.
CHGG is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -21.41% yearly.
EPS Next Y-108.05%
EPS Next 2Y-88.42%
EPS Next 3Y-34.44%
EPS Next 5YN/A
Revenue Next Year-39.13%
Revenue Next 2Y-31.51%
Revenue Next 3Y-21.41%
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
With a Price/Earnings ratio of 4.23, 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 93.51% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, CHGG is valued rather cheaply.
The Price/Forward Earnings ratio is 87.09, which means the current valuation is very expensive for CHGG.
CHGG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.84. CHGG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.23 | ||
| Fwd PE | 87.09 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than CHGG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHGG indicates a somewhat cheap valuation: CHGG is cheaper than 77.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.64 | ||
| EV/EBITDA | 0.54 |
4.3 Compensation for Growth
CHGG's earnings are expected to decrease with -34.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-88.42%
EPS Next 3Y-34.44%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
0.8883
-0.06 (-6.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners48.77%
Inst Owner Change-3.02%
Ins Owners8.08%
Ins Owner Change29.36%
Market Cap97.06M
Revenue(TTM)447.73M
Net Income(TTM)-76.74M
Analysts45
Price Target0.84 (-5.44%)
Short Float %5.57%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)317.87%
Min EPS beat(2)100%
Max EPS beat(2)535.73%
EPS beat(4)2
Avg EPS beat(4)-602.55%
Min EPS beat(4)-3041.18%
Max EPS beat(4)535.73%
EPS beat(8)5
Avg EPS beat(8)-298.87%
EPS beat(12)8
Avg EPS beat(12)-198.94%
EPS beat(16)12
Avg EPS beat(16)-143.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)0.02%
Revenue beat(4)2
Avg Revenue beat(4)0.71%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)3.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.1%
Revenue beat(12)4
Avg Revenue beat(12)0.11%
Revenue beat(16)7
Avg Revenue beat(16)0.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-31.25%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-166.67%
EPS NY rev (3m)-166.67%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-15.2%
Revenue NY rev (1m)-2.99%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.23 | ||
| Fwd PE | 87.09 | ||
| P/S | 0.22 | ||
| P/FCF | 12.64 | ||
| P/OCF | 2.28 | ||
| P/B | 0.66 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 0.54 |
EPS(TTM)0.21
EY23.64%
EPS(NY)0.01
Fwd EY1.15%
FCF(TTM)0.07
FCFY7.91%
OCF(TTM)0.39
OCFY43.92%
SpS4.1
BVpS1.34
TBVpS1.27
PEG (NY)N/A
PEG (5Y)N/A
Graham Number2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.29% | ||
| ROE | -52.54% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 63.25% | ||
| FCFM | 1.72% |
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-Score7
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 8.14 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 42.09% | ||
| Cap/Sales | 7.8% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 195.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | -2.67 |
F-Score7
WACC2.44%
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)-77.89%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-100%
EPS Next Y-108.05%
EPS Next 2Y-88.42%
EPS Next 3Y-34.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-32.37%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-43.08%
Revenue Next Year-39.13%
Revenue Next 2Y-31.51%
Revenue Next 3Y-21.41%
Revenue Next 5YN/A
EBIT growth 1Y-486.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-15.83%
EBIT Next 3Y-0.68%
EBIT Next 5YN/A
FCF growth 1Y-95.25%
FCF growth 3Y-33.14%
FCF growth 5Y-6.71%
OCF growth 1Y-82.44%
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 5 / 10 to CHEGG INC (CHGG). This can be considered as Fairly Valued.
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.