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Chegg Inc
NYSE:CHGG

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Chegg Inc Logo
Chegg Inc
NYSE:CHGG
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Price: 8.94 USD 4.56% Market Closed
Updated: Mar 1, 2024

Intrinsic Value

Chegg, Inc. operates a learning platform for students. [ Read More ]

The intrinsic value of one CHGG stock under the Base Case scenario is 20.86 USD. Compared to the current market price of 8.94 USD, Chegg Inc is Undervalued by 57%.

Key Points:
CHGG Intrinsic Value
Base Case
20.86 USD
Undervaluation 57%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Chegg Inc

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Fundamental Analysis

Chegg's Solid Financial Performance Despite Declines
2023-Q4 Earnings Call

Chegg's Solid Financial Performance Despite Declines

Despite a 5% decline in subscription services to $641 million, Chegg's overall 2023 performance was strong with total revenue of $716 million. International subscriptions grew, now accounting for $100 million and 14% of total revenue. The company's prudent expense management led to a robust adjusted EBITDA margin of 31% ($222 million) and a free cash flow margin of 24% ($173 million). Debt was substantially reduced and shares repurchased to enhance shareholder value. Q4's revenue outperformed guidance at $188 million, with a notable adjusted EBITDA of $66 million. For Q1 2024, Chegg anticipates revenue between $173 - $175 million and adjusted EBITDA of $43 - $45 million, with a slight decrease expected in interest income due to lower rates and a reduced cash balance.

Financials

Balance Sheet Decomposition
Chegg Inc

Current Assets 414.8m
Cash & Short-Term Investments 330m
Receivables 31.4m
Other Current Assets 53.4m
Non-Current Assets 1.3B
Long-Term Investments 249.5m
PP&E 208.2m
Intangibles 684.4m
Other Non-Current Assets 170.2m
Current Liabilities 518.5m
Accounts Payable 28.2m
Accrued Liabilities 77.9m
Other Current Liabilities 412.4m
Non-Current Liabilities 264.2m
Long-Term Debt 242.8m
Other Non-Current Liabilities 21.4m
Efficiency
Fundamental Scores

CHGG Profitability Score
Profitability Due Diligence

Chegg Inc's profitability score is 52/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Years Revenue Growth
ROE is Increasing
52/100
Profitability
Score

Chegg Inc's profitability score is 52/100. The higher the profitability score, the more profitable the company is.

CHGG Solvency Score
Solvency Due Diligence

Chegg Inc's solvency score is 40/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Negative Net Debt
Short-Term Solvency
40/100
Solvency
Score

Chegg Inc's solvency score is 40/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

CHGG Price Targets Summary
Chegg Inc

Wall Street analysts forecast CHGG stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CHGG is 10.04 USD with a low forecast of 7.07 USD and a high forecast of 13.65 USD.

Lowest
Price Target
7.07 USD
21% Downside
Average
Price Target
10.04 USD
12% Upside
Highest
Price Target
13.65 USD
53% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

CHGG Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

CHGG Price
Chegg Inc

1M 1M
-9%
6M 6M
-16%
1Y 1Y
-42%
3Y 3Y
-91%
5Y 5Y
-78%
10Y 10Y
+41%
Annual Price Range
8.94
52w Low
7.5
52w High
18.6
Price Metrics
Average Annual Return 9.4%
Standard Deviation of Annual Returns 80.53%
Max Drawdown -93%
Shares Statistics
Market Capitalization 919.2m USD
Shares Outstanding 102 949 000
Percentage of Shares Shorted 22.49%

CHGG Return Decomposition
Main factors of price return

What is price return decomposition?

CHGG News

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Last Important Events
Chegg Inc

Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.

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Sentiment Analysis
Chegg Inc

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Company Profile

Chegg Inc Logo
Chegg Inc

Country

United States of America

Industry

Diversified Consumer Services

Market Cap

919.2m USD

Dividend Yield

0%

Description

Chegg, Inc. operates a learning platform for students. The company is headquartered in Santa Clara, California and currently employs 1,613 full-time employees. The company went IPO on 2013-11-13. The Chegg platform provides products and services to support learners to understand their academic course material. The firm also provides personal and professional development skills training. Its Chegg Service product and service offerings include Chegg Service and required materials. Its Chegg Services, which encompasses its subscription services, and which can be accessed internationally through its Websites and on mobile devices. Its required materials include textbooks and eTextbooks. Its Chegg Services subscribers include Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Mathway, and Thinkful. The Chegg Study Pack is an integrated platform of connected academic support services. Its Chegg Writing service consists of a free, ad-supported service and a premium paid subscription service providing students with a suite of tools, including plagiarism detection scans, and grammar and writing fluency checking.

Contact

CALIFORNIA
Santa Clara
3990 Freedom Cir
+14088555700.0
https://www.chegg.com/

IPO

2013-11-13

Employees

1 613

Officers

Co-Chairman, CEO & President
Mr. Daniel Lee Rosensweig
Chief Operating Officer
Mr. Nathan Schultz
Chief Marketing Officer
Ms. Esther Lem
CFO, Principal Financial Officer, Treasurer, Controller & Chief Accounting Officer
Mr. David Longo
Vice President of Investor Relations
Ms. Tracey Ford
General Counsel & Corporate Secretary
Mr. Woodie Dixon Jr.
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Chief Communications Officer
Ms. Heather Hatlo Porter
Chief People Officer
Ms. Debra Thompson
Executive Vice President of Marketing Services
Mr. Mitch Spolan
Chief Strategy Officer
Ms. Lauren Glotzer
Show Less

See Also

Discover More
What is the Intrinsic Value of one CHGG stock?

The intrinsic value of one CHGG stock under the Base Case scenario is 20.86 USD.

Is CHGG stock undervalued or overvalued?

Compared to the current market price of 8.94 USD, Chegg Inc is Undervalued by 57%.