CHEGG INC (CHGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHGG - US1630921096 - Common Stock
0.89 USD
-0.01 (-0.95%)
0.9033 USD
+0.01 (+1.49%)
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. CHGG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
In the past 5 years CHGG always reported a positive cash flow from operatings.
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 70.13% of its industry peers.
CHGG has a Return On Equity of -52.54%. This is in the lower half of the industry: CHGG underperforms 67.53% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
The Gross Margin of CHGG (63.25%) is better than 75.32% of its industry peers.
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 | 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%
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHGG has less shares outstanding
Compared to 1 year ago, CHGG has a worse debt to assets ratio.
2.2 Solvency
CHGG has an Altman-Z score of -2.69. This is a bad value and indicates that CHGG is not financially healthy and even has some risk of bankruptcy.
CHGG's Altman-Z score of -2.69 is on the low side compared to the rest of the industry. CHGG is outperformed by 77.92% of its industry peers.
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 | -2.69 |
ROIC/WACCN/A
WACC2.44%
2.3 Liquidity
A Current Ratio of 0.95 indicates that CHGG may have some problems paying its short term obligations.
The Current ratio of CHGG (0.95) is worse than 62.34% 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 has a Quick ratio of 0.95. This is comparable to the rest of the industry: CHGG outperforms 40.26% 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 -77.89%.
CHGG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.54% yearly.
The Revenue for CHGG has decreased by -32.37% in the past year. This is quite bad
Measured over the past years, CHGG shows a quite strong growth in Revenue. The Revenue has been growing by 8.49% on average per year.
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-104.92%
EPS Next 2Y-90.54%
EPS Next 3Y-34.44%
EPS Next 5YN/A
Revenue Next Year-39.08%
Revenue Next 2Y-31.94%
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.
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
With a Price/Earnings ratio of 4.24, the valuation of CHGG can be described as very cheap.
Based on the Price/Earnings ratio, CHGG is valued cheaply inside the industry as 97.40% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.49. CHGG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 130.82, the valuation of CHGG can be described as expensive.
CHGG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, CHGG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.24 | ||
| Fwd PE | 130.82 |
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.
Based on the Price/Free Cash Flow ratio, CHGG is valued a bit cheaper than 76.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.66 | ||
| EV/EBITDA | 0.24 |
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-90.54%
EPS Next 3Y-34.44%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.89
-0.01 (-0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners48.77%
Inst Owner Change-3.02%
Ins Owners8.08%
Ins Owner Change29.37%
Market Cap97.25M
Revenue(TTM)447.73M
Net Income(TTM)-76.74M
Analysts45
Price Target0.84 (-5.62%)
Short Float %6.27%
Short Ratio1.83
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)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)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-62.98%
EPS NY rev (3m)-62.98%
Revenue NQ rev (1m)-14.93%
Revenue NQ rev (3m)-14.93%
Revenue NY rev (1m)-2.9%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.24 | ||
| Fwd PE | 130.82 | ||
| P/S | 0.22 | ||
| P/FCF | 12.66 | ||
| P/OCF | 2.28 | ||
| P/B | 0.67 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 0.24 |
EPS(TTM)0.21
EY23.6%
EPS(NY)0.01
Fwd EY0.76%
FCF(TTM)0.07
FCFY7.9%
OCF(TTM)0.39
OCFY43.83%
SpS4.1
BVpS1.34
TBVpS1.27
PEG (NY)N/A
PEG (5Y)N/A
Graham Number2.51
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)-28.15%
ROA(5y)-16.96%
ROE(3y)-135.99%
ROE(5y)-81.82%
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 3Y1.79%
GM growth 5Y-1.8%
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 | -2.69 |
F-Score7
WACC2.44%
ROIC/WACCN/A
Cap/Depr(3y)92.13%
Cap/Depr(5y)128.49%
Cap/Sales(3y)12.56%
Cap/Sales(5y)14.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-77.89%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-100%
EPS Next Y-104.92%
EPS Next 2Y-90.54%
EPS Next 3Y-34.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-32.37%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-43.08%
Revenue Next Year-39.08%
Revenue Next 2Y-31.94%
Revenue Next 3Y-21.41%
Revenue Next 5YN/A
EBIT growth 1Y-486.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-15.83%
EBIT Next 3Y-0.68%
EBIT Next 5YN/A
FCF growth 1Y-95.25%
FCF growth 3Y-33.14%
FCF growth 5Y-6.71%
OCF growth 1Y-82.44%
OCF growth 3Y-22.9%
OCF growth 5Y2%
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 of CHEGG INC (CHGG) stock?
ChartMill assigns a valuation rating of 6 / 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.
How financially healthy is CHEGG INC?
The financial health rating of CHEGG INC (CHGG) is 4 / 10.