CHGG

HoldBargain BinAI concern

Chegg, Inc. · Consumer Defensive · United States · $78M cap · $465K/day traded

$0.6971 -4.5% · close 28 Oct · scored 29 Oct

Bargain Bin: Looks like a bargain; the quality and the trend say why it is in the bin.

46
StockRank
Get score and insider alerts
Quality
42
Value
73
Momentum
24

As of 29 Oct 2026, MoatMap's StockRank for Chegg, Inc. (CHGG) is 46/100, ranked against 24,000+ stocks in 35 markets (Quality 42, Value 73, Momentum 24, each scored against its sector).

Does StockRank work? Each month we publish how every decile did, whichever way it went. See the record →

P/E (TTM)
—
peers 21.8x
ROE
-38.3%
peers 10.0%
D/E
0.4x
peers 0.8x
Dividend %
—
trailing yield
AI CONVICTION THESIS

Chegg's core homework-help subscription business has been in structural decline since generative AI chatbots began offering similar answers for free, and the market value has shrunk to about $81M. Management is now pivoting towards 'employability' services, and the shares fell about 15% on the Q2 2026 call. Repaying the convertible notes in full removes a near-term solvency worry, and a buyback is active. However, the original product's demand is being substituted rather than cyclically weak, and the new strategy is unproven.

The ranks quoted here are from the day it was written; today's Quality, Value and Momentum are the bars above.

ABOUT CHEGG, INC.

Read

Chegg, Inc. is a leading direct-to-student learning platform that provides digital study tools, textbook rentals, and online tutoring services. The company's competitive moat is anchored by its massive, proprietary database of millions of step-by-step homework solutions and expert Q&A, which creates high switching costs and strong brand loyalty among students. It is currently focused on integrating advanced artificial intelligence capabilities to enhance its personalized learning assistant and expand its global subscriber base.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026EFwd CAGR
Revenue766.9M716.3M617.6M376.9M-21.1%265.5M198.0M-47.5%
EPS2.090.16-8.10-0.96-92.3%-0.48——
Shares126.5M102.8M104.9M111.0M-12.2%111.0M——
Debt1.2B617.9M504.5M69.0M-61.4%50.7M——
Equity1.1B944.6M193.0M119.6M-52.5%———
Op CF255.7M246.2M125.2M15.5M-60.7%10.0M——
Inv CF104.9M268.7M11.3M282.3M————
Fin CF-744.8M-852.8M-109.1M-428.5M————
Loading 1Y...
PRICE (1Y) · USD-5.8%
0.670.690.720.740.7617 Sep8 Oct28 Oct
SMA 50SMA 200

Price checkNo clear trendExperimental

No clear trend: not near its 52-week low, and not in a steady uptrend.

SwingsVery bumpy

Swung more than 96% of stocks we rank over the past year (106% a year).

How this is worked out

StockRank judges the business. The price check reads only the chart: it is the price side of the Momentum score, in words.

The rules: Still falling is a new 52-week low in the last two weeks, at least 25% below the high. Finding a floor is no new low since. Turning up is 20 or more trading days without a new low, at least 10% off it, and back above a rising 50-day average. In an uptrend is above the 200-day average and within 15% of the high.

In 2,112 US drawdowns since 2001, buying while the price was still falling was followed by a further 20% drop 42% of the time. Waiting for a turn like this one cut that to 33%, at about 7% higher prices and with no better returns. Part of that cut is simply not buying: 13% of falls never turned, and waiting kept those out. Among turns that were bought, 38% still fell another 20%, and 33% of turns were followed by a new low within six months. The benefit was largest in crashes such as 2008 and 2020.

What it measures: day-to-day price moves over the past year, as a yearly figure, ranked against every stock we cover. Very calm under 20% a year, Calm 20 to 30%, Average 30 to 40%, Bumpy 40 to 55%, Very bumpy above that.

What we found: across about 13,500 stocks in 34 markets (2002 to 2025), past swings were a good guide to the next year's, and bumpier stocks fell further. How much further changed too much between eras to put a number on it.

Calm is not safe: a calm stock can still slide steadily.

Rules fixed before any data was fetched. Describes the chart, not a recommendation.

Close
$0.6971
RSI (14)
42.4
52-Week Range-55.3% from high
Low $0.45High $1.56

SCORE BREAKDOWN

Quality
42
ROIC
-37.6%1.7
ROE
-38.3%2.6
GP/Assets
61.9%91.0
Op. Margin
-6.1%8.2
FCF/Assets
18.0%94.4
Piotroski
649.8
Int. Cover
-50.0x0.8
D/E Ratio
0.43x44.5
Current Ratio
1.17x29.8
Value
73
P/E (TTM)
—N/A
EV/EBITDA
0.7x99.1
P/FCF
1.6x98.8
P/B
0.7x84.7
P/S
0.3x83.9
Div Yield
—N/A
Momentum
24
52W High %
45%9.9
RS 6M
-48%3.5
SMA 50/200
0.87x15.9
EPS Rev 4W
0.0%55.7
EPS Rev 12W
-40.0%2.4
EPS Improve
+85%70.8
Q Growth
—N/A

FUNDAMENTALS

Market Cap
$78M
P/E (Forward)
-10.0x
Gross Margin
64.8%

SECTOR PEERS

Closest peers in Consumer Defensive, ranked by industry match, size, and score similarity. Cross-listings of CHGG are excluded.

TickerCompanyMkt CapStockRankSignal
CHGGChegg, Inc.(you)$78M46Hold
LGCYLegacy Education Inc.$131M55Hold
SKILSkillsoft Corp.$54M30Sell
FCFranklin Covey Co.$233M31Sell
KLCKinderCare Learning Companies, Inc.$210M12Strong Sell
APEIAmerican Public Education, Inc.$893M63Hold
LINCLincoln Educational Services Corporation$688M21Sell
COURCoursera, Inc.$1.5B25Sell
UTIUniversal Technical Institute, Inc.$1.2B15Strong Sell
MHMcGraw Hill, Inc.$2.8B65Hold

Peer medians: ROE 10.0% · P/E 21.8x · Gross margin 34.5%

Company Deep Dive

Business segments breakdown, earnings transcript analysis, management credibility scoring, competitive landscape, and scenario modelling.

Request Deep Dive(50 Feathers)

Chegg, Inc. (CHGG): Stock Score Summary

Chegg, Inc. (CHGG) has a MoatMap StockRank of 46/100 based on Quality (42/100), Value (73/100), and Momentum (24/100) factor scores. The current signal is HOLD. Chegg's core homework-help subscription business has been in structural decline since generative AI chatbots began offering similar answers for free, and the market value has shrunk to about $81M. Management is now pivoting towards 'employability' services, and the shares fell about 15% on the Q2 2026 call. Repaying the convertible notes in full removes a near-term solvency worry, and a buyback is active. However, the original product's demand is being substituted rather than cyclically weak, and the new strategy is unproven.

Chegg, Inc. is a leading direct-to-student learning platform that provides digital study tools, textbook rentals, and online tutoring services. The company's competitive moat is anchored by its massive, proprietary database of millions of step-by-step homework solutions and expert Q&A, which creates high switching costs and strong brand loyalty among students. It is currently focused on integrating advanced artificial intelligence capabilities to enhance its personalized learning assistant and expand its global subscriber base.

Key Financial Metrics

Price$0.6971
Market Cap$78M
P/E (Forward)-10.03
Price/Book0.66
Return on Equity-38.3%
Return on Invested Capital-37.6%
Debt/Equity0.43x
Gross Margin64.8%
Operating Margin-6.1%
Revenue Growth-50.7%
Free Cash Flow$50M

Chegg, Inc. operates in the Education & Training Services industry, part of the Consumer Defensive sector (United States).

Frequently Asked Questions

What is Chegg, Inc.’s (CHGG) StockRank?
MoatMap’s StockRank for Chegg, Inc. (CHGG) is 46/100, with a Hold signal. It is a composite of Quality (42), Value (73), and Momentum (24), each scored against its sector. The composite is then ranked across MoatMap’s universe of 24,000+ stocks.
Does Chegg, Inc. have an economic moat?
Chegg, Inc. (CHGG) has a Quality factor score of 42/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Chegg, Inc. a buy, hold, or sell?
MoatMap’s current signal for Chegg, Inc. (CHGG) is Hold, based on a StockRank of 46/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Chegg, Inc. in?
Chegg, Inc. (CHGG) operates in the Consumer Defensive sector, specifically the Education & Training Services industry (United States).