CHEGG INC (CHGG) Stock Fundamental Analysis
NYSE:CHGG - New York Stock Exchange, Inc. - US1630921096 - Common Stock - Currency: USD
CHGG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 71 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 bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year CHGG was profitable.
CHGG had a positive operating cash flow in the past year.
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 (-194.44%) than 91.55% of its industry peers.
With a Return On Equity value of -459.49%, CHGG is not doing good in the industry: 78.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -194.44% | ||
| ROE | -459.49% | ||
| 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's Gross Margin of 66.77% is amongst the best of the industry. CHGG outperforms 83.10% 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 | 66.77% |
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
Compared to 5 years ago, CHGG has less shares outstanding
Compared to 1 year ago, CHGG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -1.60, 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 -1.60, CHGG is doing worse than 70.42% of the companies in the same industry.
The Debt to FCF ratio of CHGG is 1.53, which is an excellent value as it means it would take CHGG, only 1.53 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CHGG (1.53) is better than 83.10% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that CHGG is not too dependend on debt financing.
CHGG has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | -1.6 |
ROIC/WACCN/A
WACC3.25%
2.3 Liquidity
CHGG has a Current Ratio of 1.23. This is a normal value and indicates that CHGG is financially healthy and should not expect problems in meeting its short term obligations.
CHGG has a Current ratio of 1.23. This is comparable to the rest of the industry: CHGG outperforms 50.70% of its industry peers.
A Quick Ratio of 1.23 indicates that CHGG should not have too much problems paying its short term obligations.
CHGG has a Quick ratio (1.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
CHGG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.26%.
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 -19.70%.
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)-59.26%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-123.08%
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-30.38%
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 -41.39% on average per year.
CHGG is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.76% yearly.
EPS Next Y-98.32%
EPS Next 2Y-58.77%
EPS Next 3Y-41.39%
EPS Next 5YN/A
Revenue Next Year-32.58%
Revenue Next 2Y-21.79%
Revenue Next 3Y-13.76%
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
The Price/Earnings ratio is 2.91, which indicates a rather cheap valuation of CHGG.
95.77% 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 27.30, CHGG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.91, the valuation of CHGG can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHGG indicates a rather cheap valuation: CHGG is cheaper than 90.14% of the companies listed in the same industry.
CHGG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.91 | ||
| Fwd PE | 9.91 |
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.
Based on the Price/Free Cash Flow ratio, CHGG is valued cheaply inside the industry as 98.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.34 | ||
| EV/EBITDA | 2.05 |
4.3 Compensation for Growth
CHGG's earnings are expected to decrease with -41.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-58.77%
EPS Next 3Y-41.39%
5. Dividend
5.1 Amount
No dividends for CHGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.28
-0.03 (-2.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners63.65%
Inst Owner Change0%
Ins Owners3.17%
Ins Owner Change5.61%
Market Cap136.41M
Analysts45
Price Target0.84 (-34.38%)
Short Float %7.63%
Short Ratio2.01
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)0
Avg EPS beat(2)-1522.97%
Min EPS beat(2)-3041.18%
Max EPS beat(2)-4.76%
EPS beat(4)2
Avg EPS beat(4)-756.65%
Min EPS beat(4)-3041.18%
Max EPS beat(4)14.38%
EPS beat(8)4
Avg EPS beat(8)-378.68%
EPS beat(12)8
Avg EPS beat(12)-247.1%
EPS beat(16)11
Avg EPS beat(16)-182.13%
Revenue beat(2)1
Avg Revenue beat(2)1.43%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)3.84%
Revenue beat(4)1
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)3.84%
Revenue beat(8)3
Avg Revenue beat(8)0.32%
Revenue beat(12)5
Avg Revenue beat(12)0.34%
Revenue beat(16)7
Avg Revenue beat(16)0.36%
PT rev (1m)-33.11%
PT rev (3m)-29.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-185.71%
EPS NY rev (1m)-43.18%
EPS NY rev (3m)-86.11%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)-6.72%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.91 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.24 | ||
| P/FCF | 3.34 | ||
| P/OCF | 1.41 | ||
| P/B | 0.73 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 2.05 |
EPS(TTM)0.44
EY34.38%
EPS(NY)0.13
Fwd EY10.09%
FCF(TTM)0.38
FCFY29.92%
OCF(TTM)0.9
OCFY70.68%
SpS5.3
BVpS1.74
TBVpS1.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -194.44% | ||
| ROE | -459.49% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 66.77% | ||
| FCFM | 7.23% |
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-Score4
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 61.27% | ||
| Cap/Sales | 9.85% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 284.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | -1.6 |
F-Score4
WACC3.25%
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)-59.26%
EPS 3Y-16.17%
EPS 5Y-3.54%
EPS Q2Q%-123.08%
EPS Next Y-98.32%
EPS Next 2Y-58.77%
EPS Next 3Y-41.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y-7.34%
Revenue growth 5Y8.49%
Sales Q2Q%-30.38%
Revenue Next Year-32.58%
Revenue Next 2Y-21.79%
Revenue Next 3Y-13.76%
Revenue Next 5YN/A
EBIT growth 1Y4.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-10.2%
EBIT Next 3Y-14.33%
EBIT Next 5YN/A
FCF growth 1Y-74.17%
FCF growth 3Y-33.14%
FCF growth 5Y-6.71%
OCF growth 1Y-61.26%
OCF growth 3Y-22.9%
OCF growth 5Y2%