CHEGG INC (CHGG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CHGG • US1630921096

0.769 USD
-0.02 (-2.9%)
At close: Jan 30, 2026
0.7403 USD
-0.03 (-3.73%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

3

Taking everything into account, CHGG scores 3 out of 10 in our fundamental rating. CHGG was compared to 76 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 valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

2

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.
  • In the past 5 years CHGG always reported a positive cash flow from operatings.
CHGG Yearly Net Income VS EBIT VS OCF VS FCFCHGG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M -800M

1.2 Ratios

  • With a Return On Assets value of -20.29%, CHGG is not doing good in the industry: 69.74% of the companies in the same industry are doing better.
  • Looking at the Return On Equity, with a value of -52.54%, CHGG is doing worse than 67.11% of the companies in the same industry.
Industry RankSector 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
CHGG Yearly ROA, ROE, ROICCHGG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200 -300 -400

1.3 Margins

  • The Gross Margin of CHGG (63.25%) is better than 77.63% 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 RankSector 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%
CHGG Yearly Profit, Operating, Gross MarginsCHGG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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4

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
  • The number of shares outstanding for CHGG has been reduced compared to 5 years ago.
  • The debt/assets ratio for CHGG is higher compared to a year ago.
CHGG Yearly Shares OutstandingCHGG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
CHGG Yearly Total Debt VS Total AssetsCHGG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • CHGG has an Altman-Z score of -2.72. 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 (-2.72) than 73.68% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 8.14
Altman-Z -2.72
ROIC/WACCN/A
WACC2.18%
CHGG Yearly LT Debt VS Equity VS FCFCHGG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

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.
  • CHGG's Current ratio of 0.95 is in line compared to the rest of the industry. CHGG outperforms 40.79% 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 comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.95
Quick Ratio 0.95
CHGG Yearly Current Assets VS Current LiabilitesCHGG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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1

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.
  • Looking at the last year, CHGG shows a very negative growth in Revenue. The Revenue has decreased by -32.37% in the last year.
  • CHGG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.49% yearly.
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

  • Based on estimates for the next years, CHGG will show a very negative growth in Earnings Per Share. The EPS will decrease by -34.44% on average per year.
  • The Revenue is expected to decrease by -21.41% on average over the next years. This is quite bad
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.
CHGG Yearly Revenue VS EstimatesCHGG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M
CHGG Yearly EPS VS EstimatesCHGG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

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4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 3.66, the valuation of CHGG can be described as very cheap.
  • 96.05% 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 28.30, which is the current average of the S&P500 Index.
  • CHGG is valuated quite expensively with a Price/Forward Earnings ratio of 75.39.
  • The rest of the industry has a similar Price/Forward Earnings ratio as CHGG.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. CHGG is valued rather expensively when compared to this.
Industry RankSector Rank
PE 3.66
Fwd PE 75.39
CHGG Price Earnings VS Forward Price EarningsCHGG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, CHGG is valued cheaper than 85.53% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.94
EV/EBITDA -0.25
CHGG Per share dataCHGG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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%

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0

5. Dividend

5.1 Amount

  • CHGG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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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 for CHGG stock?

ChartMill assigns a valuation rating of 4 / 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.


What is the earnings growth outlook for CHEGG INC?

The Earnings per Share (EPS) of CHEGG INC (CHGG) is expected to decline by -108.05% in the next year.