Market Cap
US$12.5b
Last Updated
2021/01/23 00:37 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with mediocre balance sheet.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: CHGG's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-0.9%
CHGG
8.5%
US Consumer Services
2.3%
US Market
1 Year Return
126.8%
CHGG
34.6%
US Consumer Services
23.7%
US Market
Return vs Industry: CHGG exceeded the US Consumer Services industry which returned 34.6% over the past year.
Return vs Market: CHGG exceeded the US Market which returned 23.7% over the past year.
Shareholder returns
| CHGG | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.9% | 8.5% | 2.3% |
| 30 Day | 4.1% | 8.3% | 4.7% |
| 90 Day | 11.7% | 8.8% | 14.5% |
| 1 Year | 126.8%126.8% | 35.0%34.6% | 26.5%23.7% |
| 3 Year | 458.7%458.7% | 56.5%50.9% | 45.0%35.4% |
| 5 Year | 1,570.2%1,570.2% | 272.3%244.2% | 126.2%100.9% |
Long-Term 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
3 days ago | Simply Wall St
Is There More Growth In Store For Chegg's (NYSE:CHGG) Returns On Capital?4 weeks ago | Simply Wall St
Should You Investigate Chegg, Inc. (NYSE:CHGG) At US$92.47?1 month ago | Simply Wall St
Analysts Expect Breakeven For Chegg, Inc. (NYSE:CHGG) Before LongValuation
Is Chegg undervalued compared to its fair value and its price relative to the market?
19.31x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: CHGG ($96.87) is trading above our estimate of fair value ($69.28)
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 (19.3x) compared to the US Consumer Services industry average (2.7x).
Next Steps
Future Growth
How is Chegg forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
81.4%
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 (14.8% per year) is forecast to grow faster than the US market (10.6% per year).
High Growth Revenue: CHGG's revenue (14.8% 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 (31.4%)
Next Steps
Past Performance
How has Chegg performed over the past 5 years?
36.9%
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 36.9% 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 (10.6%).
Return on Equity
High ROE: CHGG has a negative Return on Equity (-3.73%), as it is currently unprofitable.
Next Steps
Financial Health
How is Chegg's financial position?
Financial Position Analysis
Short Term Liabilities: CHGG's short term assets ($1.3B) exceed its short term liabilities ($143.0M).
Long Term Liabilities: CHGG's short term assets ($1.3B) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: CHGG's debt to equity ratio (238.1%) 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 59.5% per year.
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?
6.7yrs
Average management tenure
CEO
Dan Rosensweig (58 yo)
10.92yrs
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 ($USD10.57M).
Compensation vs Earnings: Dan's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Chairman | 10.92yrs | US$9.13m | 1.52% $ 189.5m | |
| Chief Financial Officer | 9.25yrs | US$4.36m | 0.15% $ 18.2m | |
| President of Learning Services | 8.67yrs | US$4.34m | 0.18% $ 21.9m | |
| President of Chegg Skills | 2.08yrs | US$3.11m | 0.10% $ 12.8m | |
| Principal Accounting Officer | 6.67yrs | no data | 0.043% $ 5.3m | |
| Vice President of Investor Relations | no data | no data | no data | |
| General Counsel & Corporate Secretary | 0.33yr | no data | no data | |
| Chief Communications Officer | 0.33yr | no data | no data | |
| Chief Marketing Officer | 10.08yrs | US$2.53m | 0.12% $ 14.8m | |
| Chief People Officer | 0.83yr | no data | no data | |
| Chief Product Officer | 5.5yrs | US$2.68m | no data | |
| Executive Vice President of Marketing Services | 6.67yrs | no data | no data |
6.7yrs
Average Tenure
53yo
Average Age
Experienced Management: CHGG's management team is seasoned and experienced (6.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Chairman | 10.92yrs | US$9.13m | 1.52% $ 189.5m | |
| Independent Director | 12.08yrs | US$258.71k | 0.17% $ 21.7m | |
| Independent Co-Chairperson & Presiding Director | 2.5yrs | US$408.05k | 0.039% $ 4.9m | |
| Independent Director | 5.17yrs | US$259.96k | 0.014% $ 1.8m | |
| Independent Director | 7.58yrs | US$268.71k | 0.011% $ 1.3m | |
| Independent Director | 7.67yrs | US$267.46k | 0.0041% $ 515.3k | |
| Independent Director | 1.5yrs | US$321.73k | 0.0089% $ 1.1m | |
| Independent Director | 1.58yrs | US$327.88k | 0.0087% $ 1.1m | |
| Director | 0.083yr | no data | no data |
2.5yrs
Average Tenure
57yo
Average Age
Experienced Board: CHGG's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CHGG insiders have only sold shares 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 6.5%.
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$12.478b
- Shares outstanding: 128.81m
- Website: https://www.chegg.com
Number of Employees
Location
- Chegg, Inc.
- 3990 Freedom Circle
- Santa Clara
- California
- 95054
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CHGG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 2013 |
| 0CG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 2013 |
| 0A4Z | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Nov 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 00:37 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.