CHEGG INC (CHGG) Stock Fundamental Analysis
NYSE:CHGG - New York Stock Exchange, Inc. - US1630921096 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to CHGG. CHGG was compared to 71 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of CHGG have multiple concerns. CHGG is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CHGG was profitable.
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.
Each year in the past 5 years CHGG had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -96.33%, CHGG is not doing good in the industry: 84.51% of the companies in the same industry are doing better.
CHGG has a worse Return On Equity (-433.76%) than 78.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -96.33% | ||
| ROE | -433.76% | ||
| 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 (70.83%) is better than 87.32% of its industry peers.
In the last couple of years the Gross Margin of CHGG has declined.
The Profit Margin and Operating Margin are not available for CHGG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.83% |
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.
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 -0.93. This is a bad value and indicates that CHGG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CHGG (-0.93) is worse than 64.79% of its industry peers.
The Debt to FCF ratio of CHGG is 9.67, which is on the high side as it means it would take CHGG, 9.67 years of fcf income to pay off all of its debts.
CHGG has a Debt to FCF ratio of 9.67. This is in the better half of the industry: CHGG outperforms 63.38% of its industry peers.
CHGG has a Debt/Equity ratio of 0.66. This is a neutral value indicating CHGG is somewhat dependend on debt financing.
CHGG has a Debt to Equity ratio (0.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 9.67 | ||
| Altman-Z | -0.93 |
ROIC/WACCN/A
WACC1.49%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CHGG may have some problems paying its short term obligations.
CHGG's Current ratio of 0.83 is on the low side compared to the rest of the industry. CHGG is outperformed by 60.56% of its industry peers.
CHGG has a Quick Ratio of 0.83. 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 0.83. This is in the lower half of the industry: CHGG underperforms 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for CHGG have decreased strongly by -30.28% 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.
Looking at the last year, CHGG shows a very negative growth in Revenue. The Revenue has decreased by -13.79% in the last year.
CHGG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.49% yearly.
EPS 1Y (TTM)-30.28%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-52.78%
Revenue 1Y (TTM)-13.79%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-23.67%
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 -40.12% 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 -17.04% on average per year.
EPS Next Y-87.92%
EPS Next 2Y-41.52%
EPS Next 3Y-40.12%
EPS Next 5YN/A
Revenue Next Year-29.88%
Revenue Next 2Y-21.61%
Revenue Next 3Y-17.04%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 0.67, which indicates a rather cheap valuation of CHGG.
97.18% of the companies in the same industry are more expensive than CHGG, based on the Price/Earnings ratio.
CHGG is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.56 indicates a rather cheap valuation of CHGG.
98.59% of the companies in the same industry are more expensive than CHGG, based on the Price/Forward Earnings ratio.
CHGG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.67 | ||
| Fwd PE | 5.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHGG is valued cheaply inside the industry as 94.37% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CHGG is valued cheaper than 98.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.07 | ||
| EV/EBITDA | 1.62 |
4.3 Compensation for Growth
A cheap valuation may be justified as CHGG's earnings are expected to decrease with -40.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.52%
EPS Next 3Y-40.12%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.51
+0.01 (+1.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners81.67%
Inst Owner Change-0.02%
Ins Owners4.77%
Ins Owner Change6.1%
Market Cap53.61M
Analysts46.15
Price Target1.2 (135.29%)
Short Float %10.28%
Short Ratio2.91
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)1
Avg EPS beat(2)4.81%
Min EPS beat(2)-4.76%
Max EPS beat(2)14.38%
EPS beat(4)3
Avg EPS beat(4)4.34%
Min EPS beat(4)-4.76%
Max EPS beat(4)14.38%
EPS beat(8)5
Avg EPS beat(8)1.9%
EPS beat(12)9
Avg EPS beat(12)8.75%
EPS beat(16)11
Avg EPS beat(16)7.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)-0.15%
Revenue beat(4)0
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.02%
Revenue beat(8)2
Avg Revenue beat(8)-0.25%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)0.46%
PT rev (1m)-12.31%
PT rev (3m)-36.77%
EPS NQ rev (1m)-50%
EPS NQ rev (3m)-97.28%
EPS NY rev (1m)-85.66%
EPS NY rev (3m)-86.43%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-17.44%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)-16.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.67 | ||
| Fwd PE | 5.56 | ||
| P/S | 0.09 | ||
| P/FCF | 1.07 | ||
| P/OCF | 0.43 | ||
| P/B | 0.28 | ||
| P/tB | 0.29 | ||
| EV/EBITDA | 1.62 |
EPS(TTM)0.76
EY149.02%
EPS(NY)0.09
Fwd EY18%
FCF(TTM)0.48
FCFY93.74%
OCF(TTM)1.19
OCFY233.56%
SpS5.88
BVpS1.84
TBVpS1.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -96.33% | ||
| ROE | -433.76% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.83% | ||
| FCFM | 8.14% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 9.67 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 95.67% | ||
| Cap/Sales | 12.14% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 290.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | -0.93 |
F-Score5
WACC1.49%
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)-30.28%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-52.78%
EPS Next Y-87.92%
EPS Next 2Y-41.52%
EPS Next 3Y-40.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.79%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-23.67%
Revenue Next Year-29.88%
Revenue Next 2Y-21.61%
Revenue Next 3Y-17.04%
Revenue Next 5YN/A
EBIT growth 1Y42.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-23.6%
EBIT Next 3Y-14.33%
EBIT Next 5YN/A
FCF growth 1Y-69.2%
FCF growth 3Y-33.14%
FCF growth 5Y-6.71%
OCF growth 1Y-49.14%
OCF growth 3Y-22.9%
OCF growth 5Y2%