CHEGG INC (CHGG) Fundamental Analysis & Valuation

NYSE:CHGG • US1630921096

Current stock price

0.7253 USD
-0.03 (-3.43%)
Last:

This CHGG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. CHGG Profitability Analysis

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.
  • 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 2025 0 200M -200M -400M -600M -800M

1.2 Ratios

  • CHGG has a worse Return On Assets (-37.20%) than 78.08% of its industry peers.
  • The Return On Equity of CHGG (-86.46%) is worse than 71.23% of its industry peers.
Industry RankSector Rank
ROA -37.2%
ROE -86.46%
ROIC N/A
ROA(3y)-44.16%
ROA(5y)-24.34%
ROE(3y)-172.76%
ROE(5y)-98.91%
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 2025 0 -100 -200 -300 -400

1.3 Margins

  • CHGG's Gross Margin of 60.19% is fine compared to the rest of the industry. CHGG outperforms 75.34% 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 60.19%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.76%
GM growth 5Y-2.45%
CHGG Yearly Profit, Operating, Gross MarginsCHGG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100

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4

2. CHGG Health Analysis

2.1 Basic Checks

  • CHGG does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • CHGG has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for CHGG has been reduced compared to 5 years ago.
  • CHGG has a better debt/assets ratio than last year.
CHGG Yearly Shares OutstandingCHGG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • Based on the Altman-Z score of -3.91, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of -3.91, CHGG is not doing good in the industry: 73.97% 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z -3.91
ROIC/WACCN/A
WACC3.83%
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 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.86 indicates that CHGG may have some problems paying its short term obligations.
  • The Current ratio of CHGG (0.86) is worse than 68.49% of its industry peers.
  • CHGG has a Quick Ratio of 0.86. 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 (0.86) is worse than 61.64% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86
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 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

0

3. CHGG Growth Analysis

3.1 Past

  • CHGG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -96.05%.
  • CHGG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -53.01% yearly.
  • CHGG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -38.97%.
  • Measured over the past years, CHGG shows a very negative growth in Revenue. The Revenue has been decreasing by -10.17% on average per year.
EPS 1Y (TTM)-96.05%
EPS 3Y-71.46%
EPS 5Y-53.01%
EPS Q2Q%-105.88%
Revenue 1Y (TTM)-38.97%
Revenue growth 3Y-21.08%
Revenue growth 5Y-10.17%
Sales Q2Q%-49.36%

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 -202.32% on average per year.
  • The Revenue is expected to decrease by -26.42% on average over the next years. This is quite bad
EPS Next Y-797%
EPS Next 2Y-202.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-40.75%
Revenue Next 2Y-26.42%
Revenue Next 3YN/A
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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1

4. CHGG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 24.18, which indicates a rather expensive current valuation of CHGG.
  • The rest of the industry has a similar Price/Earnings ratio as CHGG.
  • When comparing the Price/Earnings ratio of CHGG to the average of the S&P500 Index (26.21), we can say CHGG is valued inline with the index average.
  • CHGG is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 24.18
Fwd PE N/A
CHGG Price Earnings VS Forward Price EarningsCHGG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CHGG is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 0.64
CHGG Per share dataCHGG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

  • A cheap valuation may be justified as CHGG's earnings are expected to decrease with -202.32% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-202.32%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CHGG Dividend Analysis

5.1 Amount

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

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CHGG Fundamentals: All Metrics, Ratios and Statistics

CHEGG INC

NYSE:CHGG (4/7/2026, 2:27:13 PM)

0.7253

-0.03 (-3.43%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-09
Earnings (Next)05-11
Inst Owners42.83%
Inst Owner Change0%
Ins Owners8.04%
Ins Owner Change29.15%
Market Cap81.09M
Revenue(TTM)376.91M
Net Income(TTM)-103.42M
Analysts42.86
Price TargetN/A
Short Float %6.67%
Short Ratio5.45
Dividend
Industry RankSector 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)95.33%
Min EPS beat(2)90.66%
Max EPS beat(2)100%
EPS beat(4)3
Avg EPS beat(4)-578.7%
Min EPS beat(4)-3041.18%
Max EPS beat(4)535.73%
EPS beat(8)6
Avg EPS beat(8)-287.18%
EPS beat(12)8
Avg EPS beat(12)-191.63%
EPS beat(16)12
Avg EPS beat(16)-138.11%
Revenue beat(2)2
Avg Revenue beat(2)0.17%
Min Revenue beat(2)0.02%
Max Revenue beat(2)0.33%
Revenue beat(4)3
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)3.84%
Revenue beat(8)3
Avg Revenue beat(8)0.15%
Revenue beat(12)5
Avg Revenue beat(12)0.18%
Revenue beat(16)7
Avg Revenue beat(16)0.18%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-200%
EPS NY rev (1m)0%
EPS NY rev (3m)-2150%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-28.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-23.11%
Valuation
Industry RankSector Rank
PE 24.18
Fwd PE N/A
P/S 0.22
P/FCF N/A
P/OCF 5.23
P/B 0.68
P/tB 0.71
EV/EBITDA 0.64
EPS(TTM)0.03
EY4.14%
EPS(NY)-0.21
Fwd EYN/A
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.14
OCFY19.1%
SpS3.37
BVpS1.07
TBVpS1.02
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0.85
Profitability
Industry RankSector Rank
ROA -37.2%
ROE -86.46%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 60.19%
FCFM N/A
ROA(3y)-44.16%
ROA(5y)-24.34%
ROE(3y)-172.76%
ROE(5y)-98.91%
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 3Y-6.76%
GM growth 5Y-2.45%
F-Score6
Asset Turnover1.36
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 35.76%
Cap/Sales 7.46%
Interest Coverage N/A
Cash Conversion 42.88%
Profit Quality N/A
Current Ratio 0.86
Quick Ratio 0.86
Altman-Z -3.91
F-Score6
WACC3.83%
ROIC/WACCN/A
Cap/Depr(3y)65.15%
Cap/Depr(5y)90.8%
Cap/Sales(3y)10.4%
Cap/Sales(5y)11.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-96.05%
EPS 3Y-71.46%
EPS 5Y-53.01%
EPS Q2Q%-105.88%
EPS Next Y-797%
EPS Next 2Y-202.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-38.97%
Revenue growth 3Y-21.08%
Revenue growth 5Y-10.17%
Sales Q2Q%-49.36%
Revenue Next Year-40.75%
Revenue Next 2Y-26.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year471.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-125.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-87.63%
OCF growth 3Y-60.73%
OCF growth 5Y-42.02%

CHEGG INC / CHGG Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CHEGG INC?

ChartMill assigns a fundamental rating of 2 / 10 to CHGG.


What is the valuation status for CHGG stock?

ChartMill assigns a valuation rating of 1 / 10 to CHEGG INC (CHGG). This can be considered as Overvalued.


Can you provide the profitability details for CHEGG INC?

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.