CHEGG INC (CHGG) Stock Fundamental Analysis
NYSE:CHGG • US1630921096
0.6415 USD
+0.06 (+9.47%)
At close: Feb 20, 2026
0.6569 USD
+0.02 (+2.4%)
After Hours: 2/20/2026, 8:23:00 PM
Overall CHGG gets a fundamental rating of 3 out of 10. We evaluated CHGG against 75 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.
1. Profitability
1.1 Basic Checks
- In the past year CHGG was profitable.
- CHGG had a positive operating cash flow in the past year.
- 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's Return On Assets of -20.29% is on the low side compared to the rest of the industry. CHGG is outperformed by 70.67% of its industry peers.
- Looking at the Return On Equity, with a value of -52.54%, CHGG is doing worse than 69.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.29% | ||
| ROE | -52.54% | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 78.67% 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 3Y-6.76%
GM growth 5Y-2.45%
2. Health
2.1 Basic Checks
- CHGG does not have a ROIC to compare to the WACC, probably because it is not profitable.
- CHGG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- Based on the Altman-Z score of -2.76, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of -2.76, CHGG is not doing good in the industry: 72.00% 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 | -2.76 |
ROIC/WACCN/A
WACC6.58%
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 41.33% of its industry peers.
- CHGG has a Quick 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 Quick ratio of 0.95 is in line compared to the rest of the industry. CHGG outperforms 42.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- CHGG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -96.05%.
- The earnings per share for CHGG have been decreasing by -53.01% on average. This is quite bad
- The Revenue for CHGG has decreased by -38.97% in the past year. This is quite bad
- The Revenue for CHGG have been decreasing by -10.17% on average. This is quite bad
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
- The Earnings Per Share is expected to grow by 167.21% on average over the next years. This is a very strong growth
- The Revenue is expected to decrease by -26.42% on average over the next years. This is quite bad
EPS Next Y-66%
EPS Next 2Y167.21%
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 accelerating: in the next years the growth will be better 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 21.38 indicates a rather expensive valuation of CHGG.
- CHGG's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of CHGG to the average of the S&P500 Index (26.99), we can say CHGG is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 62.89, the valuation of CHGG can be described as expensive.
- CHGG's Price/Forward Earnings ratio is in line with the industry average.
- CHGG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 62.89 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, CHGG is valued cheaply inside the industry as 89.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | -1 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as CHGG's earnings are expected to grow with 167.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y167.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
0.6415
+0.06 (+9.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-09 2026-02-09/amc
Earnings (Next)05-11 2026-05-11/amc
Inst Owners48.77%
Inst Owner Change-10.96%
Ins Owners8.08%
Ins Owner Change28.87%
Market Cap70.10M
Revenue(TTM)376.91M
Net Income(TTM)-76.74M
Analysts42.86
Price TargetN/A
Short Float %6.35%
Short Ratio4.55
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)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-88.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.2%
Revenue NY rev (1m)-23.11%
Revenue NY rev (3m)-30.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 62.89 | ||
| P/S | 0.16 | ||
| P/FCF | 9.12 | ||
| P/OCF | 1.64 | ||
| P/B | 0.48 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | -1 |
EPS(TTM)0.03
EY4.68%
EPS(NY)0.01
Fwd EY1.59%
FCF(TTM)0.07
FCFY10.96%
OCF(TTM)0.39
OCFY60.81%
SpS4.1
BVpS1.34
TBVpS1.27
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0.95
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)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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-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 | -2.76 |
F-Score7
WACC6.58%
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-66%
EPS Next 2Y167.21%
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-486.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year750.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-92.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-76.91%
OCF growth 3Y-60.73%
OCF growth 5Y-42.02%
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 -66% in the next year.