Chegg, Inc

Real Estate
Other Consumer Services
www.chegg.com

Earnings Score
Moat Score

Market Cap $276.64M
PE -0
Debt $NaN
Cash $154.98M
EV $NaN
FCF $97.15M

Earnings

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Sales & Net Margins

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Earnings	-$821.28M
EBIT	-$668.49M
ROE	-444%
ROA	-67%
FCF	$97.15M
Equity	$184.98M
Growth Stability	21%
PE	-0.34
PEG	-0.01
PB	1.5
P/FCF	2.85
P/S	0.42
Price/Cash	0.56
Net Margins	-175%
Gross Margins	73%
Op. Margins	-101%
Earnings CAGR	2%
Sales Growth YoY	-13%
Sales Growth QoQ	-16%
Sales CAGR	17%
FCF CAGR	43%
Equity CAGR	18%
Earnings Stability	0
Earnings Growth YoY	1K%

Earnings Growth QoQ	-66%
Earnings CAGR 5Y	31%
Sales CAGR 5Y	8%
FCF CAGR 5Y	1%
Equity CAGR 5Y	-2%
Earnings CAGR 3Y	-6%
Sales CAGR 3Y	-6%
FCF CAGR 3Y	-18%
Equity CAGR 3Y	-31%
Market Cap	$276.64M
Revenue	$662.08M
Assets	$1.00B
Cash	$154.98M
Shares Outstanding	102.84M
Earnings Score	6%
Moat Score	0%
Working Capital	-49.33M
Current Ratio	0.91
Gross Profit	$480.95M
Shares Growth 3y	-10%
Equity Growth QoQ	-49%
Equity Growth YoY	-82%

Assets & ROA

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Stockholders Equity & ROE

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Chegg Inc is an American educational services company that specializes in textbook rentals, course assistance, and online tutoring. The company focuses on high school and college level students who are able to rent textbooks for various courses and return them to the company after completion. Rentals are typically transacted at a low cost relative to the purchase of textbooks at full price. The company offers over 25,000 textbook titles for students to rent and historically has had over 7.8 million students use its services. Chegg also provides course and professor reviews, standardized test preparation, career preparation, and study materials on its website. Textbook rentals provide the majority of the company's revenue followed by online educational services.

SEC Filings

Direct access to Chegg, Inc (CHGG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Chegg, Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Chegg, Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 2%

Stability 0%

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Chegg, Inc Discounted Cash Flow

Fully customizable DCF calculator online for Chegg, Inc.

Years

Calculation mode

= $19B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$97M	$139M	$199M	$284M	$407M	$582M	$833M	$1.2B	$1.7B	$2.4B	$3.5B	$35B
DCF		$126M	$164M	$214M	$278M	$361M	$470M	$611M	$795M	$1B	$1.3B	$13B
Value	$19B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-21%	-20%	-17%	-8%	-5%	-2%	-1%	-0%	35%	3%	-175%
ROA	-	-20%	-14%	-4%	-1%	1%	3%	3%	4%	3%	-67%
ROE	-	-26%	-19%	-5%	-4%	-2%	-1%	-0%	24%	2%	-444%

Bad Net Margins (-175.27%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	-	-	-	-	-	-	21%	21%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (21%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-1%	-16%	0%	26%	28%	57%	20%	-1%	-7%	8%
Earnings YoY growth	-	-9%	-29%	-52%	-27%	-35%	-35%	-77%	-18K%	-93%	31%
Equity YoY growth	-	-6%	-4%	76%	5%	21%	22%	82%	1%	-15%	-2%
FCF YoY growth	-	-113%	-103%	10K%	76%	62%	118%	15%	-15%	7%	1%