Chegg Stock Analysis, Valuation (NYSE:CHGG)
Chegg Stock Analysis
View the Chegg stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for CHGG stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Chegg Inc Stock Rating 2.3/5
Amigobulls CHGG stock analysis relies on business fundamentals such as Chegg revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. We compare Chegg valuation with its sector peers to gauge relative attractiveness of CHGG stock. Our Chegg stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you sell CHGG stock?
- Over the last twelve months, Chegg posted an average operating loss margin of -6%.
- Chegg posted an average Net loss of -6.1% in the last twelve months.
- The company does not have profits. Hence the PE ratio is meaningless for CHGG stock.
- The company is trading at a price to sales multiple of 10.8, which is higher in comparison to the Internet Software industry average of 2.9, making CHGG stock expensive.
- The company has a negative Return on Invested Capital of -6.1%, which is a red flag.
- A negative ROE of -5.3% indicates that the company is not able to generate profits with the money shareholders have invested.
Chegg Related Company Stock Videos
Amigobulls Chegg stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of CHGG stock and helps investors in making good buy and sell decision.
While doing a study of the company financials, Chegg revenue growth and profit or net income are two main metrics which help in identifying whether CHGG stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about CHGG stock.