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CHGG

CheggNYSE:CHGG Stock Report

Last Price

US$26.65

Market Cap

US$3.9b

7D

-3.1%

1Y

-73.4%

Updated

25 Jan, 2022

Data

Company Financials +
CHGG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends0/6

CHGG Stock 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

Grand Canyon Education

NasdaqGS:LOPE

US$3.4b

Graham Holdings

NYSE:GHC

US$3.0b

Houghton Mifflin Harcourt

NasdaqGS:HMHC

US$2.2b

Laureate Education

NasdaqGS:LAUR

US$2.1b

Price History & Performance

Summary of all time highs, changes and price drops for Chegg
Historical stock prices
Current Share PriceUS$26.65
52 Week HighUS$115.21
52 Week LowUS$24.25
Beta0.90
1 Month Change-12.77%
3 Month Change-54.27%
1 Year Change-73.40%
3 Year Change-22.66%
5 Year Change270.65%
Change since IPO175.31%

Recent News & Updates

Dec 30

Is Chegg Stock A Buy, Sell, Or Hold After November Drop?

Chegg’s domestic business is slowing and it does not look like the macro environment will be conducive for a pickup in the near future. Investors will have to wait till Jan 24th to see some definitive outcome on Chegg’s legal tussle with Pearson. I believe the former is well-positioned. Chegg may have overpaid for Busuu, but its diversified language-based expertise is a good fit for the former’s current international strategy. Valuations are tasty, and Chegg’s top management has decided to indulge in significant insider buying. The stock has witnessed two negative technical events and has likely benefitted from some buyback momentum in December, but it is still not out of the woods even as the short interest recently spiked.

Shareholder Returns

CHGGUS Consumer ServicesUS Market
7D-3.1%-3.0%-5.8%
1Y-73.4%-69.2%4.2%

Return vs Industry: CHGG underperformed the US Consumer Services industry which returned -69.2% over the past year.

Return vs Market: CHGG underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is CHGG's price volatile compared to industry and market?
CHGG volatility
CHGG Average Weekly Movement15.4%
Consumer Services Industry Average Movement9.7%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: CHGG is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: CHGG's weekly volatility has increased from 9% to 15% 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$3.86b
Earnings (TTM)US$279.00k
Revenue (TTM)US$774.52m

Over9,999x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHGG income statement (TTM)
RevenueUS$774.52m
Cost of RevenueUS$256.33m
Gross ProfitUS$518.19m
ExpensesUS$517.91m
EarningsUS$279.00k

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 07, 2022

Earnings per share (EPS)0.0019
Gross Margin66.91%
Net Profit Margin0.036%
Debt/Equity Ratio123.8%

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?

29.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHGG ($26.65) is trading below our estimate of fair value ($37.84)

Significantly Below Fair Value: CHGG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHGG is poor value based on its PE Ratio (13880.2x) compared to the US Consumer Services industry average (16.9x).

PE vs Market: CHGG is poor value based on its PE Ratio (13880.2x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: CHGG is poor value based on its PEG Ratio (147.5x)


Price to Book Ratio

PB vs Industry: CHGG is overvalued based on its PB Ratio (2.9x) compared to the US Consumer Services industry average (1.5x).


Future Growth

How is Chegg forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

94.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHGG's forecast earnings growth (94.1% per year) is above the savings rate (2%).

Earnings vs Market: CHGG's earnings (94.1% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: CHGG's revenue (11.7% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: CHGG's revenue (11.7% 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 (14.7%).


Past Performance

How has Chegg performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHGG has a large one-off loss of $69.7M impacting its September 30 2021 financial results.

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 10.3% 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 (6%).


Return on Equity

High ROE: CHGG's Return on Equity (0.02%) is considered low.


Financial Health

How is Chegg's financial position?


Financial Position Analysis

Short Term Liabilities: CHGG's short term assets ($1.8B) exceed its short term liabilities ($133.8M).

Long Term Liabilities: CHGG's short term assets ($1.8B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: CHGG has more cash than its total debt.

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 not well covered by operating cash flow (16.5%).

Interest Coverage: CHGG's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


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?

6.5yrs

Average management tenure


CEO

Dan Rosensweig (59 yo)

11.92yrs

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 ($USD10.38M) is above average for companies of similar size in the US market ($USD5.29M).

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


Leadership Team

Experienced Management: CHGG's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: CHGG's board of directors are considered experienced (4.4 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 12.5%.


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
  • Implied Market Cap: US$3.863b
  • Shares outstanding: 144.95m
  • 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 Analysis2022/01/25 06:34
End of Day Share Price2022/01/24 00:00
Earnings2021/09/30
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.