Chegg Stock Analysis, Valuation (NYSE:CHGG)

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$26.29 $0.01 (0.04%) CHGG stock closing price May 21, 2018 (Closing)
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Chegg
Updated on : May 21, 2018
previous close
CHGG 26.3 (0%)
NASDAQ 7394 (0%)
Closing Price On: May 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-6%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Cash Flow
Operating cash flow:
$6.6M
Net Income:
-$2.6M
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
CHGG PS :
10.8
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-6.1%
Return on Equity:
-5.3%
Free Cash Flow Margin:
2.2%
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Chegg Stock Analysis

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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 buy CHGG stock?

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.

Comments on this video and Chegg stock

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.