CHEGG Shares Plunge to New Low of $15.25
April 2, 2023
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Chegg ($NYSE:CHGG) (NYSE:CHGG) has been hit hard in the markets, reaching a new 52-week low of $15.25. Chegg is an online platform that offers digital educational services including tutoring, test prep, online courses, and textbook rentals to students worldwide. Despite the recent drop in its stock price, Chegg is still well-positioned to capitalize on the digital education boom and its stock may yet recover.
Market Price
On Monday, CHEGG stocks opened at $15.9 and closed at the same price, up by 1.3% from its prior closing price of 15.7. This has led to investors becoming increasingly concerned about the future of the company. Many analysts believe that the stock is likely to remain volatile in the coming days and weeks as the company works to turn things around. chegg-shares-plunge-to-new-low-of-$15.25″>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Chegg. chegg-shares-plunge-to-new-low-of-$15.25″>More…
| Total Revenues | Net Income | Net Margin |
| 766.9 | 266.64 | 27.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chegg. chegg-shares-plunge-to-new-low-of-$15.25″>More…
| Operations | Investing | Financing |
| 255.74 | 104.89 | -744.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Chegg. chegg-shares-plunge-to-new-low-of-$15.25″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.47k | 1.35k | 8.34 |
Key Ratios Snapshot
Some of the financial key ratios for Chegg are shown below. chegg-shares-plunge-to-new-low-of-$15.25″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.1% | -20.6% | 14.3% |
| FCF Margin | ROE | ROA |
| 19.9% | 6.4% | 2.8% |
Analysis
At GoodWhale, we recently conducted an analysis of Chegg’s wellbeing. We can confidently report that, based on our Risk Rating system, Chegg is a high-risk investment in terms of financial and business aspects. In particular, our analysis revealed two risk warnings in their income sheet and balance sheet. If you’re interested in learning more about these risk warnings, we encourage you to register on our website, goodwhale.com. Here, you can access our extensive database of financial reports, get in-depth information on Chegg’s financial stability, and remain up-to-date on the latest news and trends in the industry. chegg-shares-plunge-to-new-low-of-$15.25″>More…
Peers
Chegg Inc is an American education technology company based in Santa Clara, California. The company offers digital and physical textbook rentals, online tutoring, and other student services. Chegg is one of the largest online textbook rental companies in the United States. The company has been criticized for its business model, which has been likened to textbook flipping, and for its environmental impact.
Chegg’s competitors include: CognaEducacao SA, Perdoceo Education Corp, Wah Fu Education Group Ltd.
– CognaEducacao SA ($OTCPK:COGNY)
Cogna Educacao SA is a publicly traded company with a market capitalization of 1.07 billion as of 2022. The company operates in the education sector and provides educational services and products in Brazil and internationally. The company has a return on equity of 2.54%.
– Perdoceo Education Corp ($NASDAQ:PRDO)
Perdoceo Education Corporation is a provider of higher education operating primarily through its two universities, Colorado Technical University and American InterContinental University. The company offers bachelor’s and master’s degrees in a variety of disciplines, including business, computer science, engineering, nursing, and more. Perdoceo Education Corporation is headquartered in Colorado Springs, Colorado.
– Wah Fu Education Group Ltd ($NASDAQ:WAFU)
Wah Fu Education Group Ltd. is a provider of educational services in Mainland China. The Company operates its business through four segments. The Pre-school Education segment offers educational programs and services for children aged three to six. The K-12 Education segment provides educational programs and services for students aged six to 18. The Adult and Other Education segment offers educational programs and services for adults. The International Education segment provides international education programs and services. The Company operates a number of schools, including Wah Fu Kindergarten, Wah Fu Bilingual School, Wah Fu International School and others.
Summary
This is particularly concerning considering that the technology-focused education platform has seen strong revenue growth in the past few quarters. Investors should evaluate Chegg‘s financials to gain insight into the stock’s current performance. Despite this, Chegg has seen impairment charges due to goodwill and intangible assets, which could further reduce investor confidence.
It is also worth noting that Chegg has no debt obligations, making it a favorable investment. In conclusion, investors should consider the potential benefits of investing in Chegg while being mindful of the potential impacts of impairment charges and the company’s aggressive expansion plans.
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