CHEGG INC (CHGG) Fundamental Analysis & Valuation

NYSE:CHGG • US1630921096

0.6226 USD
0 (-0.38%)
At close: Mar 9, 2026
0.6225 USD
0 (-0.02%)
Pre-Market: 3/10/2026, 8:34:36 AM

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

Fundamental Rating

2

CHGG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 74 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 does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

2

1. CHGG Profitability Analysis

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.
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

  • Looking at the Return On Assets, with a value of -20.29%, CHGG is doing worse than 70.27% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -52.54%, CHGG is doing worse than 68.92% of the companies in the same industry.
Industry RankSector 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
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

  • The Gross Margin of CHGG (63.25%) is better than 79.73% 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 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

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.
  • 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.
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 -2.76, 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: 72.97% of the companies in the same industry are doing better.
  • 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 -2.76
ROIC/WACCN/A
WACC6.56%
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

  • 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.
  • With a Current ratio value of 0.95, CHGG perfoms like the industry average, outperforming 41.89% of the companies in the same industry.
  • A Quick Ratio of 0.95 indicates that CHGG may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.95, CHGG perfoms like the industry average, outperforming 44.59% of the companies in the same 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

0

3. CHGG Growth Analysis

3.1 Past

  • The earnings per share for CHGG have decreased strongly by -96.05% in the last year.
  • Measured over the past years, CHGG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -53.01% on average per year.
  • Looking at the last year, CHGG shows a very negative growth in Revenue. The Revenue has decreased by -38.97% in the last year.
  • 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

  • CHGG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -202.32% yearly.
  • CHGG is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -26.42% yearly.
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

  • 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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

2

4. CHGG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.75, which indicates a rather expensive current valuation of CHGG.
  • CHGG's Price/Earnings is on the same level as the industry average.
  • CHGG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.45.
  • CHGG is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 20.75
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

  • CHGG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CHGG is cheaper than 90.54% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9
EV/EBITDA -1.05
CHGG Per share dataCHGG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

4.3 Compensation for Growth

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

0

5. CHGG Dividend Analysis

5.1 Amount

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

CHGG Fundamentals: All Metrics, Ratios and Statistics

CHEGG INC

NYSE:CHGG (3/9/2026, 8:04:00 PM)

Premarket: 0.6225 0 (-0.02%)

0.6226

0 (-0.38%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-09
Earnings (Next)05-11
Inst Owners42.83%
Inst Owner Change-10.86%
Ins Owners8.04%
Ins Owner Change28.87%
Market Cap69.10M
Revenue(TTM)376.91M
Net Income(TTM)-76.74M
Analysts42.86
Price TargetN/A
Short Float %7.19%
Short Ratio5.38
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)-31.25%
EPS NY rev (1m)-2150%
EPS NY rev (3m)-3173.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-23.11%
Revenue NY rev (3m)-22.14%
Valuation
Industry RankSector Rank
PE 20.75
Fwd PE N/A
P/S 0.15
P/FCF 9
P/OCF 1.62
P/B 0.47
P/tB 0.5
EV/EBITDA -1.05
EPS(TTM)0.03
EY4.82%
EPS(NY)-0.21
Fwd EYN/A
FCF(TTM)0.07
FCFY11.12%
OCF(TTM)0.38
OCFY61.69%
SpS4.03
BVpS1.32
TBVpS1.25
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0.94
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)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 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 -2.76
F-Score7
WACC6.56%
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-486.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year471.23%
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 2 / 10 to CHGG.


What is the valuation status for CHGG stock?

ChartMill assigns a valuation rating of 2 / 10 to CHEGG INC (CHGG). This can be considered as Overvalued.


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 -797% in the next year.