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Chegg

NYSE:CHGG
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHGG
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

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. The last earnings update was 51 days ago. More info.


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CHGG Share Price and Events
7 Day Returns
2.4%
NYSE:CHGG
-0.1%
US Consumer Services
0.4%
US Market
1 Year Returns
65.3%
NYSE:CHGG
2.3%
US Consumer Services
6.8%
US Market
CHGG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Chegg (CHGG) 2.4% -7.4% 14.4% 65.3% 760.1% 630.2%
US Consumer Services -0.1% 5.1% 17.6% 2.3% 103.8% 127%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • CHGG outperformed the Consumer Services industry which returned 2.3% over the past year.
  • CHGG outperformed the Market in United States of America which returned 6.8% over the past year.
Price Volatility
CHGG
Industry
5yr Volatility vs Market

CHGG Value

 Is Chegg undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Chegg to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Chegg.

NYSE:CHGG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CHGG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.977 (1 + (1- 21%) (6.41%))
1.018
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.018 * 5.96%)
8.8%

Discounted Cash Flow Calculation for NYSE:CHGG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Chegg is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CHGG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.8%)
2019 56.82 Analyst x5 52.22
2020 100.63 Analyst x3 85.01
2021 130.98 Est @ 30.17% 101.71
2022 159.71 Est @ 21.93% 113.99
2023 185.54 Est @ 16.17% 121.72
2024 208.07 Est @ 12.14% 125.46
2025 227.46 Est @ 9.32% 126.06
2026 244.15 Est @ 7.34% 124.37
2027 258.70 Est @ 5.96% 121.12
2028 271.61 Est @ 4.99% 116.88
Present value of next 10 years cash flows $1,088.53
NYSE:CHGG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $271.61 × (1 + 2.73%) ÷ (8.8% – 2.73%)
$4,598.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,598.56 ÷ (1 + 8.8%)10
$1,978.92
NYSE:CHGG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,088.53 + $1,978.92
$3,067.45
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,067.45 / 115.87
$26.47
NYSE:CHGG Discount to Share Price
Calculation Result
Value per share (USD) From above. $26.47
Current discount Discount to share price of $38.19
= -1 x ($38.19 - $26.47) / $26.47
-44.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Chegg is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Chegg's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Chegg's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CHGG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.13
NYSE:CHGG Share Price ** NYSE (2019-04-16) in USD $38.19
United States of America Consumer Services Industry PE Ratio Median Figure of 25 Publicly-Listed Consumer Services Companies 28.6x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Chegg.

NYSE:CHGG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CHGG Share Price ÷ EPS (both in USD)

= 38.19 ÷ -0.13

-290.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chegg is loss making, we can't compare its value to the US Consumer Services industry average.
  • Chegg is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Chegg's expected growth come at a high price?
Raw Data
NYSE:CHGG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -290.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
63.2%per year
United States of America Consumer Services Industry PEG Ratio Median Figure of 18 Publicly-Listed Consumer Services Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Chegg, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Chegg's assets?
Raw Data
NYSE:CHGG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $3.56
NYSE:CHGG Share Price * NYSE (2019-04-16) in USD $38.19
United States of America Consumer Services Industry PB Ratio Median Figure of 48 Publicly-Listed Consumer Services Companies 2.66x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
NYSE:CHGG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CHGG Share Price ÷ Book Value per Share (both in USD)

= 38.19 ÷ 3.56

10.74x

* Primary Listing of Chegg.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chegg is overvalued based on assets compared to the US Consumer Services industry average.
X
Value checks
We assess Chegg's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Chegg has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CHGG Future Performance

 How is Chegg expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
63.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Chegg expected to grow at an attractive rate?
  • Chegg's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Chegg's earnings growth is expected to exceed the United States of America market average.
  • Chegg's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CHGG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CHGG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 63.2%
NYSE:CHGG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 19.1%
United States of America Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 33.6%
United States of America Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CHGG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CHGG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 842 81 1
2021-12-31 613 57 2
2020-12-31 479 138 23 10
2019-12-31 394 103 0 11
NYSE:CHGG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 321 75 -15
2018-09-30 299 66 -17
2018-06-30 287 58 -14
2018-03-31 269 57 -16
2017-12-31 255 52 -20
2017-09-30 245 24 -25
2017-06-30 253 49 -30
2017-03-31 250 45 -33
2016-12-31 254 24 -42
2016-09-30 259 13 -37
2016-06-30 269 6 -45
2016-03-31 283 -26 -46

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Chegg's earnings are expected to grow significantly at over 20% yearly.
  • Chegg's revenue is expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CHGG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Chegg Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CHGG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.21 0.28 0.17 6.00
2019-12-31 0.01 0.03 0.00 6.00
NYSE:CHGG Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.13
2018-09-30 -0.15
2018-06-30 -0.13
2018-03-31 -0.16
2017-12-31 -0.20
2017-09-30 -0.27
2017-06-30 -0.32
2017-03-31 -0.36
2016-12-31 -0.47
2016-09-30 -0.41
2016-06-30 -0.51
2016-03-31 -0.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Chegg is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Chegg's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Chegg has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CHGG Past Performance

  How has Chegg performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Chegg's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Chegg does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Chegg's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Chegg's 1-year growth to the US Consumer Services industry average as it is not currently profitable.
Earnings and Revenue History
Chegg's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Chegg Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CHGG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 321.08 -14.89 131.43 114.29
2018-09-30 298.92 -16.58 126.74 103.65
2018-06-30 287.32 -14.38 123.55 94.48
2018-03-31 269.41 -16.50 117.24 88.16
2017-12-31 255.07 -20.28 114.95 81.93
2017-09-30 244.62 -25.43 113.04 76.18
2017-06-30 253.32 -29.98 110.70 72.54
2017-03-31 250.04 -32.96 112.42 68.68
2016-12-31 254.09 -42.25 108.22 66.33
2016-09-30 259.19 -37.13 106.12 63.55
2016-06-30 269.13 -45.23 105.23 62.97
2016-03-31 283.16 -46.35 103.23 60.21
2015-12-31 301.37 -59.21 109.29 59.39
2015-09-30 317.64 -61.15 112.89 57.46
2015-06-30 317.88 -69.43 119.06 55.29
2015-03-31 315.31 -67.54 120.20 54.21
2014-12-31 304.83 -64.76 111.90 49.39
2014-09-30 297.53 -174.42 118.39 49.59
2014-06-30 277.59 -171.23 104.42 46.10
2014-03-31 268.95 -166.34 95.20 43.71
2013-12-31 255.58 -158.41 90.79 41.94
2013-09-30 246.74 -42.31 73.15 39.17
2013-06-30 237.75 -38.29 73.65 39.18
2013-03-31 225.82 -43.41 73.53 39.60
2012-12-31 213.33 -49.04 75.60 39.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Chegg has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Chegg has efficiently used its assets last year compared to the US Consumer Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Chegg improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Chegg's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Chegg has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CHGG Health

 How is Chegg's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Chegg's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Chegg is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Chegg's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Chegg's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Chegg Company Filings, last reported 3 months ago.

NYSE:CHGG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 410.63 283.67 468.01
2018-09-30 388.58 280.13 459.92
2018-06-30 388.72 276.58 465.86
2018-03-31 370.01 0.00 189.09
2017-12-31 391.06 0.00 208.20
2017-09-30 368.95 0.00 203.14
2017-06-30 222.06 0.00 66.09
2017-03-31 214.06 0.00 70.29
2016-12-31 221.94 0.00 77.33
2016-09-30 215.10 0.00 90.21
2016-06-30 221.73 0.00 49.68
2016-03-31 220.40 0.00 61.51
2015-12-31 231.08 0.00 84.83
2015-09-30 220.06 0.00 102.31
2015-06-30 235.35 0.00 62.50
2015-03-31 235.44 0.00 78.90
2014-12-31 247.04 0.00 89.46
2014-09-30 234.73 0.00 83.22
2014-06-30 255.36 0.00 59.21
2014-03-31 251.93 0.00 93.82
2013-12-31 274.24 0.00 113.94
2013-09-30 95.70 21.00 15.93
2013-06-30 110.25 19.75 21.64
2013-03-31 107.74 19.57 30.29
2012-12-31 121.07 19.39 21.03
  • Chegg's level of debt (69.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 69.1% today).
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.

  • Whilst loss making Chegg has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Chegg has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -109.4% per year.
X
Financial health checks
We assess Chegg's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Chegg has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CHGG Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Chegg dividends. Estimated to be 0% next year.
If you bought $2,000 of Chegg shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Chegg's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Chegg's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CHGG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CHGG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Chegg has not reported any payouts.
  • Unable to verify if Chegg's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Chegg's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Chegg has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Chegg's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Chegg's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Chegg afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Chegg has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CHGG Management

 What is the CEO of Chegg's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Rosensweig
COMPENSATION $8,044,994
AGE 56
TENURE AS CEO 9.2 years
CEO Bio

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 as a Senior Advisor of TPG Growth. He serves as an Investor and Advisor of Ozy Media, Inc. and Criteo Corp. He serves as an Executive in Residence of Columbia Business School. He serves as Chief Executive Officer and President of Chegg com at CourseRank LLC. Prior to joining Chegg, Inc. in February 2010, he served as the Chief Executive Officer and President of RedOctane Inc. since April 2009. He served as the Chief Executive Officer and Head\President of Guitar Hero Business at Activision Blizzard, Inc. and Activision Publishing, Inc. since March 2009. Mr. Rosensweig was responsible for shepherding the Santa Monica company's popular game, which was co-developed by Activision's Red Octane and Neversoft studios, launching Guitar Hero 5, Band Hero and DJ Hero in 2009. He joined RedOctane in March 2009. He served as the Chief Executive Officer and President of ZDNet, Inc. from January 1999 to July 2000 and from 1997 to July 2000 respectively. He was an Operating Principal of Quadrangle Capital Partners LP. From 2007 to 2009, Mr. Rosensweig served as an Operating Principal and Partner of Quadrangle Group LLC, where he focused on its media and communications private equity business. He served as President of Ziff Davis Internet. Prior to joining the Quadrangle Group in August 2007, he served as the Chief Operating Officer of Yahoo! Inc. (now Altaba Inc.) from April 2002 to March 31, 2007, where he oversaw its worldwide operations including its product development, marketing, advertising sales and international operations and North American operations. He joined Yahoo in April 2002. He served as the President of CNET Networks, Inc. since October 2000. He was 18-year veteran of Ziff-Davis, where he served in many capacities. He served as the President of Ziff-Davis Internet Publishing Group since 1997, where he oversaw magazine titles such as Inter@ctive Week and Yahoo! Internet Life. He served as an Executive Vice President of ZD Inc.'s Internet Publishing Group from 1996 to 1997. From 1995 to 1996, he served as a Vice President of PC Magazine Group and served as its Publisher from 1994 to 1995. Since joining ZD Inc. in 1983, he served in a number of positions, including Associate Publisher positions at PC Magazine, Computer Shopper and PC Sources. He served as the Managing Director of TVG Capital Partners Limited. Mr. Rosensweig has been Co-Chairman at Chegg, Inc since 2018 and had been its Chairman from March 2010 to 2018. Mr. Rosensweig has been a Director of Adobe Systems Incorporated since January 12, 2009. He serves as a Director of Fender Musical Instruments Corporation, Deja News Inc., Social Programming Network, Inc, Adobe Systems Software Ireland Limited, Reputation.com (UK) Limited, Reputation.com, Inc., Comedy World and Katalyst Media. He participates on the Advisory Board of the non-profit DonorsChoose.org. He was Member of Advisory Board at Criteo Corp. He serves as a Trustee for the James Beard Foundation and Hobart and William Smith Colleges. He serves as a Member of the Advisory Board at Mail.com Media Corporation and served as its Director. He served as a Director of Time Inc. from July 3, 2017 to January 31, 2018. He served as a Director and Member of the Board of Advisors at Penske Media Corporation. He served as a Director of Skyrider, Inc., since May 1, 2007. He served as a Director of Ziff-Davis Inc. since February 10, 1999. He served as a Director of CNET Networks, Inc. He served as a Member of Advisory Board at Criteo SA. He has successful, high-growth consumer business experience. Mr. Rosensweig has a Bachelor of Arts degree in Political Science from Hobart College, Geneva, New York.

CEO Compensation
  • Dan's compensation has increased whilst company is loss making.
  • Dan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Chegg management team in years:

4.9
Average Tenure
54
Average Age
  • The tenure for the Chegg management team is about average.
Management Team

Dan Rosensweig

TITLE
Co-Chairman
COMPENSATION
$8M
AGE
56
TENURE
9.2 yrs

Andy Brown

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
58
TENURE
7.5 yrs

Mike Osier

TITLE
Chief Information Officer & Chief Outcomes Officer
COMPENSATION
$3M
AGE
55
TENURE
0.3 yrs

Esther Lem

TITLE
Chief Marketing Officer
COMPENSATION
$2M
AGE
62
TENURE
8.3 yrs

Chuck Geiger

TITLE
Chief Product Officer
COMPENSATION
$3M
AGE
51
TENURE
3.8 yrs

Nathan Schultz

TITLE
President of Learning Services
COMPENSATION
$3M
AGE
41
TENURE
6.9 yrs

Robin Tomasello

TITLE
Principal Accounting Officer
AGE
47
TENURE
4.9 yrs

Tracey Ford

TITLE
Vice President of Investor Relations

Dave Borders

TITLE
General Counsel & Secretary
AGE
44
TENURE
3 yrs

Jenny Brandemuehl

TITLE
Chief People Officer
COMPENSATION
$2M
AGE
54
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the Chegg board of directors in years:

4.6
Average Tenure
55
Average Age
  • The tenure for the Chegg board of directors is about average.
Board of Directors

Dan Rosensweig

TITLE
Co-Chairman
COMPENSATION
$8M
AGE
56
TENURE
0.8 yrs

Richard Sarnoff

TITLE
Co-Chairperson
COMPENSATION
$204K
AGE
59
TENURE
0.8 yrs

Marne Levine

TITLE
Director
COMPENSATION
$210K
AGE
47
TENURE
5.9 yrs

Reneé Budig

TITLE
Director
COMPENSATION
$210K
AGE
57
TENURE
3.4 yrs

Ted Schlein

TITLE
Director
COMPENSATION
$215K
AGE
54
TENURE
10.3 yrs

John York

TITLE
Director
COMPENSATION
$205K
AGE
37
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Dec 18 Sell Theodore Schlein Individual 13. Dec 18 13. Dec 18 -34,750 $28.84 $-1,002,190
05. Jun 18 Sell John York Individual 01. Jun 18 01. Jun 18 -11,980 $27.89 $-334,122
X
Management checks
We assess Chegg's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Chegg has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CHGG News

Simply Wall St News

Are Insiders Selling Chegg, Inc. (NYSE:CHGG) Stock?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months, the biggest single sale by an insider was when the Director, Theodore Schlein, sold US$1.0m worth of shares at a price of US$28.84 per share. … That means that an insider was selling shares at slightly below the current price (US$36.98).

Simply Wall St -

Announcing: Chegg (NYSE:CHGG) Stock Soared An Exciting 893% In The Last Three Years

But when you hold the right stock for the right time period, the rewards can be truly huge. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. … So we're surprised that the share price has soared by 115% each year over that time.

Simply Wall St -

Chegg, Inc. (NYSE:CHGG): Time For A Financial Health Check

CHGG’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … How does CHGG’s operating cash flow stack up against its debt?

Simply Wall St -

Does Chegg, Inc.'s (NYSE:CHGG) CEO Pay Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … After that, we will consider the growth in the business. … How Does Dan Rosensweig's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Chegg, Inc. (NYSE:CHGG): Cash Is King

I’ve analysed below, the health and outlook of Chegg’s cash flow, which will help you understand the stock from a cash standpoint. … Chegg generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether Chegg’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Should You Be Worried About Insider Transactions At Chegg Inc (NYSE:CHGG)?

So before you buy or sell Chegg Inc (NYSE:CHGG), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … It's not ideal to see that insiders have sold at around the current price of US$27.95

Simply Wall St -

Is Chegg Inc's (NYSE:CHGG) CEO Being Overpaid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Dan Rosensweig's Compensation Compare With Similar Sized Companies. … It would therefore appear that Chegg Inc pays Dan Rosensweig more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

At US$27.30, Is Chegg Inc (NYSE:CHGG) A Buy?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Chegg’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Why Chegg Inc (NYSE:CHGG) Is A Financially Healthy Company

Mid-caps stocks, like Chegg Inc (NYSE:CHGG) with a market capitalization of US$3.03b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. … Don’t forget that this is a general and concentrated examination of Chegg's financial health, so you should conduct further analysis.

Simply Wall St -

How Does Chegg Inc's (NYSE:CHGG) Earnings Growth Stack Up Against Industry Performance?

Today I will take a look at Chegg Inc's (NYSE:CHGG) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, as well as how the rest of the consumer services industry performed. … Were CHGG's earnings stronger than its past performances and the industry. … CHGG is loss-making, with the most recent trailing twelve-month earnings of -US$16.50m (from 31 March 2018), which compared to last year has become.

Simply Wall St -

CHGG Company Info

Description

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. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks. Its digital products and services include Chegg Study, which helps students master challenging concepts on their own; Chegg Writing that enables automatically generate sources in the required formats, when students need to cite their sources in written work; Chegg Tutors that allow students find human help on its learning platform through a network of live tutors; and Chegg Math solver, which helps students to get math help through self-guided and individualized math solutions The company also offers Other Services, such as Test Prep, internships, college admission and scholarship services; rents and sells print textbooks and eTextbooks; and offers supplemental materials and textbook buyback services. Chegg, Inc. was founded in 2003 and is headquartered in Santa Clara, California.

Details
Name: Chegg, Inc.
CHGG
Exchange: NYSE
Founded: 2003
$4,425,135,716
115,871,582
Website: http://www.chegg.com
Address: Chegg, Inc.
3990 Freedom Circle,
Santa Clara,
California, 95054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CHGG Common Stock New York Stock Exchange US USD 13. Nov 2013
DB 0CG Common Stock Deutsche Boerse AG DE EUR 13. Nov 2013
Number of employees
Current staff
Staff numbers
1,087
Chegg employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/17 00:51
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/04/01
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.