CHEGG INC (CHGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHGG - US1630921096 - Common Stock
0.7754 USD
-0.01 (-1.82%)
0.76 USD
-0.02 (-1.99%)
Overall CHGG gets a fundamental rating of 3 out of 10. We evaluated CHGG against 76 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 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.
- In the past 5 years CHGG always reported a positive cash flow from operatings.
1.2 Ratios
- CHGG has a worse Return On Assets (-20.29%) than 69.74% of its industry peers.
- CHGG has a worse Return On Equity (-52.54%) than 67.11% 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 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.
- Compared to 1 year ago, CHGG has more shares outstanding
- The number of shares outstanding for CHGG has been reduced compared to 5 years ago.
- CHGG has a worse debt/assets ratio than last year.
2.2 Solvency
- CHGG has an Altman-Z score of -2.72. This is a bad value and indicates that CHGG is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of -2.72, CHGG is doing worse than 73.68% of the companies in the same industry.
- 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 | -2.72 |
ROIC/WACCN/A
WACC2.19%
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 has a Current ratio (0.95) which 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.
- Looking at the Quick ratio, with a value of 0.95, CHGG is in line with its industry, outperforming 43.42% of the companies in the same industry.
| 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.
- CHGG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.54% yearly.
- CHGG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -32.37%.
- The Revenue has been growing by 8.49% on average over the past years. This is quite good.
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
- CHGG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -34.44% yearly.
- 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 3.69.
- Based on the Price/Earnings ratio, CHGG is valued cheaply inside the industry as 96.05% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of CHGG to the average of the S&P500 Index (27.21), we can say CHGG is valued rather cheaply.
- The Price/Forward Earnings ratio is 76.02, which means the current valuation is very expensive for CHGG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CHGG is on the same level as its industry peers.
- CHGG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.69 | ||
| Fwd PE | 76.02 |
4.2 Price Multiples
- 85.53% of the companies in the same industry are more expensive than CHGG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | -0.26 |
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-88.42%
EPS Next 3Y-34.44%
5. Dividend
5.1 Amount
- CHGG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 -108.05% in the next year.