CHEGG INC (CHGG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CHGG • US1630921096

0.68 USD
-0.07 (-9.33%)
Last: Feb 10, 2026, 01:09 PM
Fundamental Rating

3

CHGG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 75 industry peers in the Diversified Consumer Services industry. The financial health of CHGG is average, but there are quite some concerns on its profitability. CHGG is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

2

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.
  • The reported net income has been mixed in the past 5 years: CHGG reported negative net income in multiple years.
  • Of the past 5 years CHGG 4 years had a positive operating cash flow.
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 0 200M -200M -400M -600M -800M

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 69.33% of its industry peers.
  • Looking at the Return On Equity, with a value of -52.54%, CHGG is doing worse than 66.67% of the companies in the same industry.
Industry RankSector 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
CHGG Yearly ROA, ROE, ROICCHGG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200 -300 -400

1.3 Margins

  • CHGG has a better Gross Margin (63.25%) than 77.33% of its industry peers.
  • CHGG's Gross Margin has declined in the last couple of years.
  • CHGG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector 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%
CHGG Yearly Profit, Operating, Gross MarginsCHGG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

4

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.
CHGG Yearly Shares OutstandingCHGG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • Based on the Altman-Z score of -2.73, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
  • CHGG has a Altman-Z score of -2.73. This is in the lower half of the industry: CHGG underperforms 73.33% of its industry peers.
  • There is no outstanding debt for CHGG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 8.14
Altman-Z -2.73
ROIC/WACCN/A
WACC2.13%
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 0 500M 1B 1.5B

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 comparable to the rest of the industry.
  • A Quick Ratio of 0.95 indicates that CHGG may have some problems paying its short term obligations.
  • The Quick ratio of CHGG (0.95) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.95
Quick Ratio 0.95
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 500M 1B 1.5B

2

3. Growth

3.1 Past

  • The earnings per share for CHGG have decreased strongly by -96.05% in the last year.
  • CHGG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -53.01% yearly.
EPS 1Y (TTM)-96.05%
EPS 3Y-71.46%
EPS 5Y-53.01%
EPS Q2Q%-105.88%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-49.36%

3.2 Future

  • CHGG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 167.21% yearly.
  • CHGG is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.71% yearly.
EPS Next Y-66%
EPS Next 2Y167.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-22.93%
Revenue Next 2Y-10.71%
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.
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

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.67, which indicates a rather expensive current valuation of CHGG.
  • CHGG's Price/Earnings is on the same level as the industry average.
  • CHGG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 66.67, the valuation of CHGG can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CHGG is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of CHGG to the average of the S&P500 Index (27.86), we can say CHGG is valued expensively.
Industry RankSector Rank
PE 22.67
Fwd PE 66.67
CHGG Price Earnings VS Forward Price EarningsCHGG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, CHGG is valued cheaper than 85.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.67
EV/EBITDA -0.46
CHGG Per share dataCHGG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • CHGG's earnings are expected to grow with 167.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y167.21%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

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

CHEGG INC

NYSE:CHGG (2/10/2026, 1:09:08 PM)

0.68

-0.07 (-9.33%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-09
Earnings (Next)05-11
Inst Owners48.77%
Inst Owner Change-1.06%
Ins Owners8.08%
Ins Owner Change28.56%
Market Cap74.30M
Revenue(TTM)N/A
Net Income(TTM)-76.74M
Analysts42.86
Price TargetN/A
Short Float %6.42%
Short Ratio4.51
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)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)-166.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.99%
Valuation
Industry RankSector Rank
PE 22.67
Fwd PE 66.67
P/S 0.17
P/FCF 9.67
P/OCF 1.74
P/B 0.51
P/tB 0.53
EV/EBITDA -0.46
EPS(TTM)0.03
EY4.41%
EPS(NY)0.01
Fwd EY1.5%
FCF(TTM)0.07
FCFY10.34%
OCF(TTM)0.39
OCFY57.37%
SpS4.1
BVpS1.34
TBVpS1.27
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0.95
Profitability
Industry RankSector 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 RankSector 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 -2.73
F-Score7
WACC2.13%
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)-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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-49.36%
Revenue Next Year-22.93%
Revenue Next 2Y-10.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-486.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-15.77%
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 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.