CHEGG INC (CHGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHGG - US1630921096 - Common Stock
0.9548 USD
+0.03 (+2.94%)
0.97 USD
+0.02 (+1.59%)
CHGG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 76 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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
Looking at the Return On Assets, with a value of -20.29%, CHGG is doing worse than 69.74% of the companies in the same industry.
Looking at the Return On Equity, with a value of -52.54%, CHGG is doing worse than 67.11% of the companies in the same industry.
| 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 77.63% 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 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.
The number of shares outstanding for CHGG has been increased compared to 1 year ago.
CHGG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CHGG has a worse debt to assets ratio.
2.2 Solvency
CHGG has an Altman-Z score of -2.67. This is a bad value and indicates that CHGG is not financially healthy and even has some risk of bankruptcy.
CHGG has a Altman-Z score of -2.67. This is in the lower half of the industry: CHGG underperforms 72.37% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | -2.67 |
ROIC/WACCN/A
WACC2.6%
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.
The Current ratio of CHGG (0.95) is comparable to the rest of the industry.
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 43.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for CHGG have decreased strongly by -77.89% in the last year.
Measured over the past years, CHGG shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.54% on average per year.
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.
Based on estimates for the next years, CHGG will show a very negative growth in Revenue. The Revenue will decrease by -21.41% on average per year.
EPS Next Y-108.05%
EPS Next 2Y-88.42%
EPS Next 3Y-34.44%
EPS Next 5YN/A
Revenue Next Year-39.13%
Revenue Next 2Y-31.51%
Revenue Next 3Y-21.41%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
CHGG is valuated cheaply with a Price/Earnings ratio of 4.55.
93.42% of the companies in the same industry are more expensive than CHGG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.00, CHGG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 93.61, 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.
The average S&P500 Price/Forward Earnings ratio is at 23.70. CHGG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 93.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHGG indicates a rather cheap valuation: CHGG is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHGG indicates a somewhat cheap valuation: CHGG is cheaper than 78.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.58 | ||
| EV/EBITDA | 0.56 |
4.3 Compensation for Growth
A cheap valuation may be justified as CHGG's earnings are expected to decrease with -34.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-88.42%
EPS Next 3Y-34.44%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
0.9548
+0.03 (+2.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners48.77%
Inst Owner Change0%
Ins Owners8.08%
Ins Owner Change29.36%
Market Cap104.33M
Revenue(TTM)447.73M
Net Income(TTM)-76.74M
Analysts45
Price Target0.84 (-12.02%)
Short Float %5.87%
Short Ratio2.32
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)-31.25%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-63.62%
EPS NY rev (3m)-166.67%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-15.2%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 93.61 | ||
| P/S | 0.23 | ||
| P/FCF | 13.58 | ||
| P/OCF | 2.45 | ||
| P/B | 0.71 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 0.56 |
EPS(TTM)0.21
EY21.99%
EPS(NY)0.01
Fwd EY1.07%
FCF(TTM)0.07
FCFY7.36%
OCF(TTM)0.39
OCFY40.86%
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 | -2.67 |
F-Score7
WACC2.6%
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-108.05%
EPS Next 2Y-88.42%
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-39.13%
Revenue Next 2Y-31.51%
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-15.77%
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 5 / 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 -108.05% in the next year.