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.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$26.65|
|52 Week High||US$115.21|
|52 Week Low||US$24.25|
|1 Month Change||-12.77%|
|3 Month Change||-54.27%|
|1 Year Change||-73.40%|
|3 Year Change||-22.66%|
|5 Year Change||270.65%|
|Change since IPO||175.31%|
Recent News & Updates
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.
|CHGG||US Consumer Services||US Market|
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.
|CHGG Average Weekly Movement||15.4%|
|Consumer Services Industry Average Movement||9.7%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.4%|
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
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
|CHGG fundamental statistics|
Is CHGG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CHGG income statement (TTM)|
|Cost of Revenue||US$256.33m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 07, 2022
|Earnings per share (EPS)||0.0019|
|Net Profit Margin||0.036%|
How did CHGG perform over the long term?See historical performance and comparison
Is Chegg undervalued compared to its fair value and its price relative to the market?
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).
How is Chegg forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
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%).
How has Chegg performed over the past 5 years?
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.
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 ($1.7B).
Debt to Equity History and Analysis
Debt Level: CHGG has more cash than its total debt.
Reducing Debt: Insufficient data to determine if CHGG's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CHGG's debt is not well covered by operating cash flow (16.5%).
Interest Coverage: CHGG's interest payments on its debt are well covered by EBIT (5.4x coverage).
What is Chegg current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CHGG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CHGG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CHGG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CHGG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CHGG's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Rosensweig (59 yo)
Mr. Daniel Lee Rosensweig, also known as Dan, has been the Chief Executive Officer and President of Chegg, Inc. since February 2010. Mr. Rosensweig serves as a Senior Advisor of TPG Capital, L.P. He serves...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($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.
Experienced Management: CHGG's management team is seasoned and experienced (6.5 years average tenure).
Experienced Board: CHGG's board of directors are considered experienced (4.4 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.5%.
Chegg, Inc.'s employee growth, exchange listings and data sources
- 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
- Chegg, Inc.
- 3990 Freedom Circle
- Santa Clara
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/25 06:34|
|End of Day Share Price||2022/01/24 00:00|
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.