DB:0CG

Stock Analysis Report

Executive Summary

Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials.

Snowflake

Fundamentals

Mediocre balance sheet with limited growth.


Similar Companies

Share Price & News

How has Chegg's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

0CG

1.7%

DE Consumer Services

1.7%

DE Market


1 Year Return

34.6%

0CG

2.9%

DE Consumer Services

7.2%

DE Market

Return vs Industry: 0CG exceeded the German Consumer Services industry which returned 2.9% over the past year.

Return vs Market: 0CG exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

0CGIndustryMarket
7 Day-0.7%1.7%1.7%
30 Day-2.9%-0.7%2.4%
90 Day-23.0%0.01%2.3%
1 Year34.6%34.6%3.5%2.9%10.6%7.2%
3 Year371.2%371.2%-6.6%-10.3%18.4%8.1%
5 Year526.2%526.2%-38.1%-54.2%42.3%22.9%

Price Volatility Vs. Market

How volatile is Chegg's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Chegg undervalued compared to its fair value and its price relative to the market?

8.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 0CG (€29.4) is trading above our estimate of fair value (€17.52)

Significantly Below Fair Value: 0CG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0CG is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: 0CG is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 0CG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 0CG is overvalued based on its PB Ratio (8.5x) compared to the XE Consumer Services industry average (2.4x).


Next Steps

Future Growth

How is Chegg forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

125.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0CG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 0CG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 0CG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 0CG's revenue (20.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 0CG's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 0CG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Chegg performed over the past 5 years?

47.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 0CG is unprofitable, but has reduced losses over the past 5 years at a rate of 47.7% per year.

Accelerating Growth: Unable to compare 0CG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 0CG is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (38.5%).


Return on Equity

High ROE: 0CG has a negative Return on Equity (-3.2%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 0CG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 0CG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Chegg's financial position?


Financial Position Analysis

Short Term Liabilities: 0CG's short term assets ($847.9M) exceeds its short term liabilities ($64.2M)

Long Term Liabilities: 0CG's short term assets (847.9M) do not cover its long term liabilities (892.0M)


Debt to Equity History and Analysis

Debt Level: 0CG's debt to equity ratio (190.2%) is considered high

Reducing Debt: Insufficient data to determine if 0CG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 0CG has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0CG's debt is not covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 0CG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 0CG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 80.5% per year.


Next Steps

  • Explore more healthy companies in the Consumer Services industry.

Dividend

What is Chegg's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 0CG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 0CG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 0CG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0CG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0CG's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Chegg's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Dan Rosensweig (57yo)

9.7yrs

Tenure

US$9,117,507

Compensation

Mr. Daniel Lee Rosensweig, also known as Dan, has been the Chief Executive Officer and President of Chegg, Inc. since February 2010. Mr. Rosensweig serves as a Senior Advisor of TPG Capital, L.P. He serves ...


CEO Compensation Analysis

Compensation vs. Market: Dan's total compensation ($USD9.12M) is about average for companies of similar size in the German market ($USD2.95M).

Compensation vs Earnings: Dan's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.4yrs

Average Tenure

55yo

Average Age

Experienced Management: 0CG's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

55yo

Average Age

Experienced Board: 0CG's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$882,62917 Dec 18
Theodore Schlein
EntityIndividual
Role
Member of the Board of Directors
Director
Shares34,750
Max PriceUS$25.40

Ownership Breakdown


Management Team

  • Dan Rosensweig (57yo)

    Co-Chairman

    • Tenure: 9.7yrs
    • Compensation: US$9.12m
  • Andy Brown (59yo)

    Chief Financial Officer

    • Tenure: 8yrs
    • Compensation: US$3.84m
  • Mike Osier (56yo)

    Chief Information Officer & Chief Outcomes Officer

    • Tenure: 0.8yrs
    • Compensation: US$3.12m
  • Chuck Geiger (52yo)

    Chief Product Officer

    • Tenure: 4.3yrs
    • Compensation: US$2.68m
  • Esther Lem (63yo)

    Chief Marketing Officer

    • Tenure: 8.8yrs
    • Compensation: US$2.53m
  • Nathan Schultz (42yo)

    President of Learning Services

    • Tenure: 7.4yrs
    • Compensation: US$3.12m
  • Dave Borders (45yo)

    General Counsel & Secretary

    • Tenure: 3.5yrs
  • Robin Tomasello (48yo)

    Principal Accounting Officer

    • Tenure: 5.4yrs
  • Tracey Ford

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jenny Brandemuehl (55yo)

    Chief People Officer

    • Tenure: 3.2yrs
    • Compensation: US$2.53m

Board Members

  • Ted Schlein (55yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: US$239.99k
  • Dan Rosensweig (57yo)

    Co-Chairman

    • Tenure: 9.7yrs
    • Compensation: US$9.12m
  • Richard Sarnoff (60yo)

    Co-Chairperson

    • Tenure: 1.3yrs
    • Compensation: US$312.57k
  • Reneé Budig (58yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$234.99k
  • Jed York (38yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$229.99k
  • Marne Levine (48yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: US$234.99k
  • Paul LeBlanc

    Director

    • Tenure: 0.3yrs
  • Melanie Whelan (42yo)

    Director

    • Tenure: 0.3yrs

Company Information

Chegg, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chegg, Inc.
  • Ticker: 0CG
  • Exchange: DB
  • Founded: 2003
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$3.916b
  • Listing Market Cap: US$3.515b
  • Shares outstanding: 119.65m
  • Website: https://www.chegg.com

Number of Employees


Location

  • Chegg, Inc.
  • 3990 Freedom Circle
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHGGNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2013
0CGDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2013

Biography

Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:33
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.