CHEGG INC (CHGG)
US1630921096 - Common Stock
We assign a fundamental rating of 3 out of 10 to CHGG. CHGG was compared to 66 industry peers in the Diversified Consumer Services industry. CHGG may be in some trouble as it scores bad on both profitability and health. CHGG is valued quite cheap, 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.
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
The Return On Assets of CHGG (-81.91%) is worse than 93.75% of its industry peers.
The Return On Equity of CHGG (-443.98%) is worse than 85.94% of its industry peers.
| 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 a decent Gross Margin value of 72.67%, CHGG is doing good in the industry, outperforming 79.69% of the companies in the same industry.
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 | 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
The debt/assets ratio for CHGG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.53, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
CHGG has a Altman-Z score of -0.53. This is in the lower half of the industry: CHGG underperforms 70.31% 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.
CHGG has a better Debt to FCF ratio (6.19) than 60.94% 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.
With a Debt to Equity ratio value of 1.31, CHGG is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | -0.53 |
ROIC/WACCN/A
WACC2.83%
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 67.19% 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.
The Quick ratio of CHGG (0.91) is worse than 67.19% 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%.
CHGG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.08% yearly.
The Revenue has decreased by -9.75% in the past year.
The Revenue has been growing by 17.41% on average over the past years. This is quite good.
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 decrease in Earnings Per Share. The EPS will decrease by -4.23% on average per year.
Based on estimates for the next years, CHGG will show a decrease in Revenue. The Revenue will decrease by -6.82% on average per year.
EPS Next Y-20.63%
EPS Next 2Y-6.68%
EPS Next 3Y-4.23%
EPS Next 5YN/A
Revenue Next Year-11.45%
Revenue Next 2Y-9.12%
Revenue Next 3Y-6.82%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.89 indicates a rather cheap valuation of CHGG.
CHGG's Price/Earnings ratio is rather cheap when compared to the industry. CHGG is cheaper than 96.88% of the companies in the same industry.
CHGG is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 1.90, 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.
CHGG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.89 | ||
| Fwd PE | 1.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHGG is valued cheaper than 92.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHGG is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.93 | ||
| EV/EBITDA | 3.16 |
4.3 Compensation for Growth
A cheap valuation may be justified as CHGG's earnings are expected to decrease with -4.23% in the coming years.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-6.68%
EPS Next 3Y-4.23%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHEGG INC
NYSE:CHGG (11/21/2024, 8:19:26 PM)
Premarket: 1.81 +0.01 (+0.56%)1.8
+0.07 (+4.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap187.76M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.89 | ||
| Fwd PE | 1.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -81.91% | ||
| ROE | -443.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 72.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.93%
EPS 3Y-5.94%
EPS 5Y
EPS Q2Q%
EPS Next Y-20.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.75%
Revenue growth 3Y3.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y