Chegg Buy or Sell Recommendation

Macroaxis provides Chegg Inc buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Chegg positions. The advice algorithm takes into account all of Chegg Inc available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from Chegg buy-and-hold prospective. Check also Chegg Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus

Time Horizon

Risk Tolerance

Execute Advice
Chegg Inc -- USA Stock  

USD 21.57  0.18  0.84%

Given the investment horizon of 30 days, and your above average risk tolerance our recommendation regarding Chegg Inc is 'Strong Buy'.
For the selected time horizon Chegg Inc has a risk adjusted performance of 0.1001, jensen alpha of 0.2622, total risk alpha of 0.527, sortino ratio of 0.1762 and treynor ratio of 0.615
Macroaxis buy, hold, or sell recommendation module can be used to complement current analysts and expert consensus on Chegg. Our buy, hold, or sell suggestion engine makes use of analyzes the corporation potential to grow using all fundamental data market data available at the time. To make sure Chegg is not overpriced, please confirm all Chegg Inc fundamentals including its Price to Book, Cash and Equivalents and the relationship between Shares Owned by Institutions and Gross Profit . Given that Chegg Inc has Number of Shares Shorted of 23.53 M, we suggest you validate Chegg Inc market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Returns Distribution Density

Mean Return0.23Value At Risk2.79
Potential Upside2.92Standard Deviation2.38
 Return Density 

Institutional Investors

Security TypeSharesValue
Primecap Management CoCommon Shares10.2 M166.4 M
Price T Rowe Associates IncCommon Shares8.9 M145.2 M
Gilder Gagnon Howe Co LlcCommon Shares7.3 M119.8 M
Sylebra Hk Co LtdCommon Shares7 M113.5 M
Par Capital Management IncCommon Shares6.2 M101.9 M
Blackrock IncCommon Shares5.6 M90.8 M
Vanguard Group IncCommon Shares4.8 M78.6 M

Chegg Greeks

Alpha over DOW
Beta against DOW=0.35
Overall volatility
Information ratio =0.15

Chegg Volatility Alert

Chegg Inc has relatively low volatility with skewness of 0.91 and kurtosis of 1.49. However, we advise all investors to independently investigate Chegg Inc to ensure market all accessible information is consistent with the expectations about its upside potential and future risk-adjusted return.
 Better Than Average     
 Worse Than Average Compare Chegg to competition
FundamentalsCheggPeer Average
Return On Equity(6.62) % (15.17) %
Return On Asset(3.67) % (15.64) %
Profit Margin(7.95) % (5.50) %
Operating Margin(8.50) % (10.91) %
Current Valuation2.13 B152.14 B
Shares Outstanding109.96 M1.43 B
Shares Owned by Insiders3.12 % 6.91 %
Shares Owned by Institutions114.72 % 18.37 %
Number of Shares Shorted23.53 M3.24 M
Price to Earning50.86 times40.69 times
Price to Book6.23 times14.44 times
Price to Sales9.57 times17.81 times
Revenue255.07 M9.85 B
Gross Profit174.89 M21.75 B
EBITDA(2.33 M)1.41 B
Net Income(20.28 M)517.71 M
Cash and Equivalents208.2 M3.89 B
Cash per Share1.89 times5.17 times
Debt to Equity0.22 % 0.72 %
Current Ratio4.44 times3.30 times
Book Value Per Share3.57 times13.64 times
Cash Flow from Operations51.15 M1.25 B
Short Ratio18.64 times2.09 times
Earnings Per Share0.20 times2.30 times
Price to Earnings To Growth1.88 times1.22 times
Number of Employees89310.67 K
Market Capitalization2.44 B29.78 B
Total Asset291.36 M126.86 B
Retained Earnings(329.08 M)38.24 B
Working Capital76.72 M3.58 B
Current Asset132.84 M36.8 B
Current Liabilities56.11 M33.34 B
Strong Buy


Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

   Exercise or conversion by Tomasello Robin of 6638 shares of Chegg subject to Rule 16b-3 [view details]
Risk Adjusted Performance0.1001
Market Risk Adjusted Performance0.625
Mean Deviation1.87
Semi Deviation1.72
Downside Deviation1.96
Coefficient Of Variation1050.62
Standard Deviation2.38
Information Ratio0.1452
Jensen Alpha0.2622
Total Risk Alpha0.527
Sortino Ratio0.1762
Treynor Ratio0.615
Maximum Drawdown9.87
Value At Risk2.79
Potential Upside2.92
Downside Variance3.85
Semi Variance2.97
Expected Short fall2.28

Current Valuation

Chegg Current Valuation Analysis
Chegg Inc is the top company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Education and Training Services industry is currently estimated at about 13.65 Billion. Chegg retains roughly 2.13 Billion in current valuation claiming about 16% of equities under Education and Training Services industry.