CHEGG INC (CHGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHGG - US1630921096 - Common Stock
0.7774 USD
+0.03 (+3.65%)
Taking everything into account, CHGG scores 3 out of 10 in our fundamental rating. CHGG was compared to 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 Return On Assets of -20.29%. This is in the lower half of the industry: CHGG underperforms 69.74% of its industry peers.
- 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
- CHGG has a Gross Margin of 63.25%. This is in the better half of the industry: CHGG outperforms 77.63% of its industry peers.
- CHGG's Gross Margin has declined in the last couple of years.
- 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 | 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
- CHGG has less shares outstanding than it did 5 years ago.
- CHGG has a worse debt/assets ratio than last year.
2.2 Solvency
- CHGG has an Altman-Z score of -2.73. 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 -2.73. This is in the lower half of the industry: CHGG underperforms 73.68% 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 | -2.73 |
ROIC/WACCN/A
WACC2.13%
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 of 0.95. This is comparable to the rest of the industry: CHGG outperforms 40.79% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- CHGG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.89%.
- The Earnings Per Share has been decreasing by -3.54% on average over the past years.
- Looking at the last year, CHGG shows a very negative growth in Revenue. The Revenue has decreased by -32.37% in the last year.
- 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
- 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.
- The Revenue is expected to decrease by -21.41% on average over the next years. This is quite bad
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 3.70 indicates a rather cheap valuation of CHGG.
- CHGG's Price/Earnings ratio is rather cheap when compared to the industry. CHGG is cheaper than 96.05% of the companies in the same industry.
- CHGG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 76.22, the valuation of CHGG can be described as expensive.
- CHGG's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CHGG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.7 | ||
| Fwd PE | 76.22 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, CHGG is valued cheaply inside the industry as 85.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.06 | ||
| EV/EBITDA | -0.46 |
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.