CHEGG INC (CHGG) Stock Fundamental Analysis
NYSE:CHGG - New York Stock Exchange, Inc. - US1630921096 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CHGG. CHGG was compared to 71 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of CHGG have multiple concerns. CHGG has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
CHGG had positive earnings in the past year.
CHGG had a positive operating cash flow in the past year.
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
The Return On Assets of CHGG (-81.91%) is worse than 90.63% of its industry peers.
Looking at the Return On Equity, with a value of -443.98%, CHGG is doing worse than 84.38% 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
Looking at the Gross Margin, with a value of 72.67%, CHGG belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Gross Margin of CHGG has declined.
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.
Compared to 1 year ago, CHGG has less shares outstanding
Compared to 5 years ago, CHGG has less shares outstanding
CHGG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.55, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
CHGG has a worse Altman-Z score (-0.55) than 67.19% of its industry peers.
The Debt to FCF ratio of CHGG is 6.19, which is on the high side as it means it would take CHGG, 6.19 years of fcf income to pay off all of its debts.
CHGG's Debt to FCF ratio of 6.19 is fine compared to the rest of the industry. CHGG outperforms 64.06% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that CHGG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.31, CHGG is doing worse than 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | -0.55 |
ROIC/WACCN/A
WACC2.34%
2.3 Liquidity
CHGG has a Current Ratio of 0.91. This is a bad value and indicates that CHGG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.91, CHGG is doing worse than 64.06% of the companies in the same industry.
CHGG has a Quick Ratio of 0.91. This is a bad value and indicates that CHGG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.91, CHGG is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
| 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%.
The Earnings Per Share has been growing by 15.08% on average over the past years. This is quite good.
The Revenue has decreased by -9.75% in the past 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
Based on estimates for the next years, CHGG will show a very negative growth in Earnings Per Share. The EPS will decrease by -22.11% on average per year.
Based on estimates for the next years, CHGG will show a very negative growth in Revenue. The Revenue will decrease by -14.35% on average per year.
EPS Next Y-30.05%
EPS Next 2Y-23.35%
EPS Next 3Y-22.11%
EPS Next 5YN/A
Revenue Next Year-13.72%
Revenue Next 2Y-15.14%
Revenue Next 3Y-14.35%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 1.51 indicates a rather cheap valuation of CHGG.
Compared to the rest of the industry, the Price/Earnings ratio of CHGG indicates a rather cheap valuation: CHGG is cheaper than 96.88% of the companies listed in the same industry.
CHGG is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 2.23, which indicates a rather cheap valuation of CHGG.
98.44% of the companies in the same industry are more expensive than CHGG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CHGG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.51 | ||
| Fwd PE | 2.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHGG indicates a rather cheap valuation: CHGG is cheaper than 93.75% of the companies listed 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 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.54 | ||
| EV/EBITDA | 2.66 |
4.3 Compensation for Growth
A cheap valuation may be justified as CHGG's earnings are expected to decrease with -22.11% in the coming years.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-23.35%
EPS Next 3Y-22.11%
5. Dividend
5.1 Amount
CHGG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.43
-0.04 (-2.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners95.59%
Inst Owner Change-0.82%
Ins Owners3.86%
Ins Owner Change6.33%
Market Cap149.16M
Analysts48
Price Target1.77 (23.78%)
Short Float %10.91%
Short Ratio3.46
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)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)-6.73%
PT rev (3m)-41.53%
EPS NQ rev (1m)-2.96%
EPS NQ rev (3m)-56.45%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-11.87%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-23.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.51 | ||
| Fwd PE | 2.23 | ||
| P/S | 0.23 | ||
| P/FCF | 1.54 | ||
| P/OCF | 0.81 | ||
| P/B | 0.81 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 2.66 |
EPS(TTM)0.95
EY66.43%
EPS(NY)0.64
Fwd EY44.78%
FCF(TTM)0.93
FCFY65.14%
OCF(TTM)1.77
OCFY123.74%
SpS6.35
BVpS1.77
TBVpS1.66
PEG (NY)N/A
PEG (5Y)0.1
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 | -0.55 |
F-Score6
WACC2.34%
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-30.05%
EPS Next 2Y-23.35%
EPS Next 3Y-22.11%
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-15.14%
Revenue Next 3Y-14.35%
Revenue Next 5YN/A
EBIT growth 1Y84.02%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1.68%
EBIT Next 3Y-9.4%
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%