NYSE:CHGG

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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. More Details


Snowflake Analysis

High growth potential with acceptable track record.


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

Stable Share Price: CHGG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.0%

CHGG

-1.2%

US Consumer Services

-3.3%

US Market


1 Year Return

126.1%

CHGG

40.8%

US Consumer Services

10.9%

US Market

Return vs Industry: CHGG exceeded the US Consumer Services industry which returned 40.8% over the past year.

Return vs Market: CHGG exceeded the US Market which returned 10.9% over the past year.


Shareholder returns

CHGGIndustryMarket
7 Day6.0%-1.2%-3.3%
30 Day-11.0%0.5%-5.7%
90 Day3.9%15.9%8.2%
1 Year126.1%126.1%41.2%40.8%13.4%10.9%
3 Year357.8%357.8%46.5%41.4%34.9%25.9%
5 Year830.7%830.7%248.6%223.6%84.6%63.8%

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

Valuation

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

5118.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHGG ($67.94) is trading above our estimate of fair value ($49.07)

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


Price To Earnings Ratio

PE vs Industry: CHGG is poor value based on its PE Ratio (5118.3x) compared to the US Consumer Services industry average (32.5x).

PE vs Market: CHGG is poor value based on its PE Ratio (5118.3x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: CHGG is poor value based on its PEG Ratio (74.6x)


Price to Book Ratio

PB vs Industry: CHGG is overvalued based on its PB Ratio (16.9x) compared to the US Consumer Services industry average (1.9x).


Next Steps

Future Growth

How is Chegg forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

68.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHGG's forecast earnings growth (68.6% per year) is above the savings rate (2.2%).

Earnings vs Market: CHGG's earnings (68.6% per year) are forecast to grow faster than the US market (23% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHGG's revenue (17.1% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: CHGG's revenue (17.1% 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 high in 3 years time (34.2%)


Next Steps

Past Performance

How has Chegg performed over the past 5 years?

41.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHGG has high quality earnings.

Growing Profit Margin: CHGG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CHGG has become profitable over the past 5 years, growing earnings by 41.6% per year.

Accelerating Growth: CHGG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CHGG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (8.1%).


Return on Equity

High ROE: CHGG's Return on Equity (0.3%) is considered low.


Next Steps

Financial Health

How is Chegg's financial position?


Financial Position Analysis

Short Term Liabilities: CHGG's short term assets ($742.1M) exceed its short term liabilities ($90.5M).

Long Term Liabilities: CHGG's short term assets ($742.1M) do not cover its long term liabilities ($951.0M).


Debt to Equity History and Analysis

Debt Level: CHGG's debt to equity ratio (185.8%) is considered high.

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

Debt Coverage: CHGG's debt is well covered by operating cash flow (20.3%).

Interest Coverage: CHGG's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Next Steps

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?

6.3yrs

Average management tenure


CEO

Dan Rosensweig (58 yo)

10.58yrs

Tenure

US$9,131,071

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 ($USD9.13M) is about average for companies of similar size in the US market ($USD7.46M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Rosensweig
Co-Chairman10.58yrsUS$9.13m1.69%
$ 142.9m
Andrew Brown
Chief Financial Officer8.92yrsUS$4.36m0.15%
$ 13.0m
Nathan Schultz
President of Learning Services8.33yrsUS$4.34m0.18%
$ 15.6m
John Fillmore
Chief Strategy Officer1.75yrsUS$3.11mno data
Robin Tomasello
Principal Accounting Officer6.33yrsno data0.070%
$ 5.9m
Tracey Ford
Vice President of Investor Relationsno datano datano data
Woodie Dixon
General Counselno datano datano data
Esther Lem
Chief Marketing Officer9.75yrsUS$2.53m0.13%
$ 10.7m
Charles Geiger
Chief Product Officer5.17yrsUS$2.68mno data
Mitch Spolan
Executive Vice President of Marketing Services6.33yrsno datano data
Dana Jewell
Secretary0.67yrno datano data

6.3yrs

Average Tenure

53yo

Average Age

Experienced Management: CHGG's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Rosensweig
Co-Chairman10.58yrsUS$9.13m1.69%
$ 142.9m
Theodore Schlein
Independent Director11.75yrsUS$258.71k0.18%
$ 15.2m
Richard Sarnoff
Independent Co-Chairperson & Presiding Director2.17yrsUS$408.05k0.041%
$ 3.4m
Reneé Budig
Independent Director4.83yrsUS$259.96k0.015%
$ 1.2m
John York
Independent Director7.25yrsUS$268.71k0.011%
$ 919.8k
Marne Levine
Independent Director7.33yrsUS$267.46k0.0043%
$ 361.5k
Paul LeBlanc
Independent Director1.17yrsUS$321.73k0.0092%
$ 778.7k
Melanie Whelan
Independent Director1.25yrsUS$327.88k0.0090%
$ 763.5k

3.5yrs

Average Tenure

57yo

Average Age

Experienced Board: CHGG's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CHGG 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 3.9%.


Top Shareholders

Company Information

Chegg, Inc.'s company bio, 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$8.446b
  • Shares outstanding: 124.31m
  • 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
0A4ZLSE (London Stock Exchange)YesCommon StockGBUSDNov 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 Analysis2020/09/25 05:32
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.