Chegg, Inc. (CHGG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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The Andersons, Inc.

First Advantage Corp.

Chegg, Inc.

LegalZoom.com, Inc.

Why is Chegg, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -207.46% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 77.35 MM
RAW MATERIAL COST(Y) Grown by 7.33% (YoY)
CASH AND EQV(HY) Lowest at USD 175.98 MM

Risky - Market Cap of less than 100 cr

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -64.90%, its profits have fallen by -1600%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -64.90% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Chegg, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chegg, Inc.

-64.9%

-0.66

115.04%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.09%

EBIT Growth (5y)

-207.46%

EBIT to Interest (avg)

-1.68

Debt to EBITDA (avg)

2.37

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.91

Tax Ratio

19.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

2.30%

ROE (avg)

5.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.94

EV to EBIT

-3.40

EV to EBITDA

3.27

EV to Capital Employed

0.93

EV to Sales

0.27

PEG Ratio

Dividend Yield

ROCE (Latest)

-27.24%

ROE (Latest)

-68.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DEBT-EQUITY RATIO (HY)

Lowest at -1.15 %

NET PROFIT(Q)

At USD -9.24 MM has Grown at 92.8%

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 77.35 MM

RAW MATERIAL COST(Y)

Grown by 7.33% (YoY

CASH AND EQV(HY)

Lowest at USD 175.98 MM

NET SALES(Q)

Lowest at USD 105.12 MM

OPERATING PROFIT(Q)

Lowest at USD 6.19 MM

PRE-TAX PROFIT(Q)

Lowest at USD -8.02 MM

Here's what is working for Chegg, Inc.

Net Profit

At USD -9.24 MM has Grown at 92.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at -1.15 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Chegg, Inc.

Net Sales

At USD 105.12 MM has Fallen at -35.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -8.02 MM has Fallen at -180.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow

Lowest at USD 77.35 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 105.12 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 6.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD -8.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Cash and Eqv

Lowest at USD 175.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.33% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales