CHGG

CheggNYSE:CHGG Stock Report

Market Cap

US$11.3b

7D

-0.4%

1Y

22.1%

Updated

18 Sep, 2021

Data

Company Financials +
CHGG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

CHGG Overview

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 to learn their course materials, succeed in their classes, and save money on required materials.

Chegg Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chegg
Historical stock prices
Current Share PriceUS$78.25
52 Week HighUS$63.75
52 Week LowUS$115.21
Beta0.84
1 Month Change1.05%
3 Month Change-2.18%
1 Year Change22.08%
3 Year Change148.26%
5 Year Change989.83%
Change since IPO708.37%

Recent News & Updates

Sep 11
What Is Chegg, Inc.'s (NYSE:CHGG) Share Price Doing?

What Is Chegg, Inc.'s (NYSE:CHGG) Share Price Doing?

Chegg, Inc. ( NYSE:CHGG ) saw significant share price movement during recent months on the NYSE, rising to highs of...

Jul 29
Returns On Capital Are Showing Encouraging Signs At Chegg (NYSE:CHGG)

Returns On Capital Are Showing Encouraging Signs At Chegg (NYSE:CHGG)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...

Jul 18

Chegg: A Well-Recognized Edtech Positioned For Growth

The e-learning industry is poised for strong growth over the next decade. Chegg has strong brand recognition which positions it well to take advantage of industry trends. The company is trading at a premium.

Jul 08
Are Investors Undervaluing Chegg, Inc. (NYSE:CHGG) By 48%?

Are Investors Undervaluing Chegg, Inc. (NYSE:CHGG) By 48%?

How far off is Chegg, Inc. ( NYSE:CHGG ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

CHGGUS Consumer ServicesUS Market
7D-0.4%0.07%-0.6%
1Y22.1%-53.8%33.8%

Return vs Industry: CHGG exceeded the US Consumer Services industry which returned -53.8% over the past year.

Return vs Market: CHGG underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is CHGG's price volatile compared to industry and market?
CHGG volatility
CHGG Beta0.84
Industry Beta0.90
Market Beta1

Stable Share Price: CHGG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CHGG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20052,594Dan Rosensweighttps://www.chegg.com

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 to learn their course materials, succeed in their classes, and save money on required materials. The company offers Chegg Services, which include subscription services; and required materials that comprise its print textbooks and eTextbooks. Its subscription services include Chegg Study, which helps students master challenging concepts on their own; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math solver, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various Chegg Services product offerings, including Chegg Study, Chegg Writing, Chegg Math Solver, video content, and practice quizzes, which creates an integrated platform of connected academic support services; and Thinkful, a skills-based learning platform that offers professional courses in the areas of software engineering, UX/UI design, digital marketing, data science, product management, data analytics, product design, and technical project management directly to students.

Chegg Fundamentals Summary

How do Chegg's earnings and revenue compare to its market cap?
CHGG fundamental statistics
Market CapUS$11.32b
Earnings (TTM)-US$43.51m
Revenue (TTM)US$756.60m

15.0x

P/S Ratio

-260.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHGG income statement (TTM)
RevenueUS$756.60m
Cost of RevenueUS$251.60m
Gross ProfitUS$505.00m
ExpensesUS$548.51m
Earnings-US$43.51m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.33
Gross Margin66.75%
Net Profit Margin-5.75%
Debt/Equity Ratio125.2%

How did CHGG perform over the long term?

See historical performance and comparison

Valuation

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

8.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CHGG ($78.25) is trading above our estimate of fair value ($71.86)

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


Price To Earnings Ratio

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

PE vs Market: CHGG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CHGG is overvalued based on its PB Ratio (8.5x) compared to the US Consumer Services industry average (1.9x).


Future Growth

How is Chegg forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

69.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHGG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CHGG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CHGG's is expected to become profitable in the next 3 years.

Revenue vs Market: CHGG's revenue (16.7% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: CHGG's revenue (16.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHGG's Return on Equity is forecast to be low in 3 years time (19.1%).


Past Performance

How has Chegg performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHGG is currently unprofitable.

Growing Profit Margin: CHGG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CHGG is unprofitable, but has reduced losses over the past 5 years at a rate of 9.3% per year.

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

Earnings vs Industry: CHGG is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (35.4%).


Return on Equity

High ROE: CHGG has a negative Return on Equity (-3.25%), as it is currently unprofitable.


Financial Health

How is Chegg's financial position?


Financial Position Analysis

Short Term Liabilities: CHGG's short term assets ($2.1B) exceed its short term liabilities ($113.5M).

Long Term Liabilities: CHGG's short term assets ($2.1B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: CHGG's debt to equity ratio (125.2%) is considered high.

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


Balance Sheet


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 CHGG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CHGG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 55.2% per year.


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if CHGG'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 CHGG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Dan Rosensweig (59 yo)

11.58yrs

Tenure

US$10,381,080

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 ($USD10.38M) is about average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: CHGG's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: CHGG's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Chegg, Inc.
  • Ticker: CHGG
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$11.321b
  • Shares outstanding: 144.68m
  • Website: https://www.chegg.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:12
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.