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

Investment Horizon

  

Risk Tolerance

  
Symbol
Execute Advice
Chegg Inc -- USA Stock  

USD 15.79  0.1  0.64%

Given the investment horizon of 30 days, and your above average risk tolerance our recommendation regarding Chegg Inc is 'Hold'.
For the selected time horizon Chegg Inc has a risk adjusted performance of 0.0874, jensen alpha of 0.1073, total risk alpha of (1.07), sortino ratio of 0.0 and treynor ratio of 0.3285
This buy or sell advice tool can be used to cross verify current analyst consensus on Chegg Inc and to analyze the company potential to grow in the current economic cycle. 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 Return0.48Value At Risk4.06
Potential Upside3.37Standard Deviation2.88
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Primecap Management CoCommon Shares10.7 M159 M
Price T Rowe Associates IncCommon Shares9.3 M137.9 M
Gilder Gagnon Howe Co LlcCommon Shares7 M104.5 M
Sylebra Hk Co LtdCommon Shares7 M103.2 M
Par Capital Management IncCommon Shares6.2 M92.6 M
Blackrock IncCommon Shares5.5 M81.5 M
Vanguard Group IncCommon Shares4.9 M72.5 M

Chegg Greeks

α
Alpha over DOW
=0.11
βBeta against DOW=1.43
σ
Overall volatility
=2.87
 IrInformation ratio =0.0751

Chegg Volatility Alert

Chegg Inc exhibits very low volatility with skewness of -2.12 and kurtosis of 5.77. However, we advise investors to further study Chegg Inc technical indicators to make sure all market info is available and is reliable.
    
 Better Than Average     
    
 Worse Than Average Compare Chegg to competition
FundamentalsCheggPeer Average
Return On Equity(8.71) % (15.17) %
Return On Asset(4.11) % (15.64) %
Profit Margin(10.4) % (5.5) %
Operating Margin(10.17) % (10.91) %
Current Valuation1.42 B152.14 B
Shares Outstanding108.44 M1.43 B
Shares Owned by Insiders2.82 % 6.91 %
Shares Owned by Institutions115.91 % 18.37 %
Number of Shares Shorted23.53 M3.24 M
Price to Earning(50.86) times40.69 times
Price to Book4.63 times14.44 times
Price to Sales7 times17.81 times
Revenue244.62 M9.85 B
Gross Profit134.49 M21.75 B
EBITDA(6.19 M)1.41 B
Net Income(25.43 M)517.71 M
Cash and Equivalents203.14 M3.89 B
Cash per Share1.87 times5.17 times
Debt to Equity0.22 % 0.72 %
Current Ratio3.65 times3.3 times
Book Value Per Share3.41 times13.64 times
Cash Flow from Operations23.66 M1.25 B
Short Ratio18.64 times2.09 times
Earnings Per Share(0.27) times2.3 times
Price to Earnings To Growth2.36 times1.22 times
Number of Employees67210.67 K
Beta1.510.34
Market Capitalization1.71 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
SellBuy
Hold

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
   Exercise or conversion by Ted Schlein of 58175 shares of Chegg subject to Rule 16b-3 [view details]
Risk Adjusted Performance0.0874
Market Risk Adjusted Performance0.3385
Mean Deviation1.95
Coefficient Of Variation600.27
Standard Deviation2.88
Variance8.28
Information Ratio0.0751
Jensen Alpha0.1073
Total Risk Alpha(1.07)
Treynor Ratio0.3285
Maximum Drawdown12.69
Value At Risk(4.06)
Potential Upside3.37
Skewness(2.12)
Kurtosis5.77

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 13.7 Billion. Chegg retains roughly 1.42 Billion in current valuation claiming about 10% of equities under Education and Training Services industry.