CHEGG INC (CHGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHGG - US1630921096 - Common Stock
0.92 USD
-0.04 (-4.12%)
0.9212 USD
+0 (+0.13%)
We assign a fundamental rating of 3 out of 10 to CHGG. 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.
CHGG had a positive operating cash flow in the past year.
In multiple years CHGG reported negative net income over the last 5 years.
Each year in the past 5 years CHGG had a positive operating cash flow.
1.2 Ratios
CHGG has a worse Return On Assets (-20.29%) than 71.05% of its industry peers.
With a Return On Equity value of -52.54%, CHGG is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
| 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
Looking at the Gross Margin, with a value of 63.25%, CHGG is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
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.
CHGG has more shares outstanding than it did 1 year ago.
CHGG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CHGG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -2.67, we must say that CHGG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -2.67, 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 | -2.67 |
ROIC/WACCN/A
WACC2.6%
2.3 Liquidity
A Current Ratio of 0.95 indicates that CHGG may have some problems paying its short term obligations.
The Current ratio of CHGG (0.95) is worse than 60.53% of its industry peers.
A Quick Ratio of 0.95 indicates that CHGG may have some problems paying its short term obligations.
CHGG has a Quick ratio of 0.95. This is comparable to the rest of the industry: CHGG outperforms 42.11% of its industry peers.
| 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.
The Revenue for CHGG has decreased by -32.37% in the past year. This is quite bad
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)-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.
CHGG is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -21.41% yearly.
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
CHGG is valuated cheaply with a Price/Earnings ratio of 4.38.
CHGG's Price/Earnings ratio is rather cheap when compared to the industry. CHGG is cheaper than 93.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of CHGG to the average of the S&P500 Index (26.84), we can say CHGG is valued rather cheaply.
A Price/Forward Earnings ratio of 90.20 indicates a quite expensive valuation of CHGG.
CHGG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CHGG to the average of the S&P500 Index (23.40), we can say CHGG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.38 | ||
| Fwd PE | 90.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHGG is valued cheaper than 100.00% of the companies in the same industry.
CHGG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHGG is cheaper than 77.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.09 | ||
| EV/EBITDA | 0.59 |
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% |
0.92
-0.04 (-4.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners48.77%
Inst Owner Change-3.02%
Ins Owners8.08%
Ins Owner Change29.36%
Market Cap100.53M
Revenue(TTM)447.73M
Net Income(TTM)-76.74M
Analysts45
Price Target0.84 (-8.7%)
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)-166.67%
EPS NY rev (3m)-166.67%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-15.2%
Revenue NY rev (1m)-2.99%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.38 | ||
| Fwd PE | 90.2 | ||
| P/S | 0.22 | ||
| P/FCF | 13.09 | ||
| P/OCF | 2.36 | ||
| P/B | 0.69 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 0.59 |
EPS(TTM)0.21
EY22.83%
EPS(NY)0.01
Fwd EY1.11%
FCF(TTM)0.07
FCFY7.64%
OCF(TTM)0.39
OCFY42.4%
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 of CHEGG INC (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.
How financially healthy is CHEGG INC?
The financial health rating of CHEGG INC (CHGG) is 4 / 10.