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Chegg Inc (CHGG)



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Upturn Advisory Summary
08/28/2025: CHGG (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $2.79
1 Year Target Price $2.79
0 | Strong Buy |
0 | Buy |
2 | Hold |
2 | Sell |
1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -54.26% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 152.74M USD | Price to earnings Ratio - | 1Y Target Price 2.79 |
Price to earnings Ratio - | 1Y Target Price 2.79 | ||
Volume (30-day avg) 5 | Beta 1.77 | 52 Weeks Range 0.44 - 2.73 | Updated Date 08/28/2025 |
52 Weeks Range 0.44 - 2.73 | Updated Date 08/28/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -2.57 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-08-05 | When - | Estimate 0.05 | Actual 0.1 |
Profitability
Profit Margin -53.68% | Operating Margin (TTM) -13.82% |
Management Effectiveness
Return on Assets (TTM) -3.44% | Return on Equity (TTM) -103.91% |
Valuation
Trailing PE - | Forward PE 1.84 | Enterprise Value 142189626 | Price to Sales(TTM) 0.3 |
Enterprise Value 142189626 | Price to Sales(TTM) 0.3 | ||
Enterprise Value to Revenue 0.28 | Enterprise Value to EBITDA 2.97 | Shares Outstanding 108327000 | Shares Floating 102958304 |
Shares Outstanding 108327000 | Shares Floating 102958304 | ||
Percent Insiders 3.89 | Percent Institutions 49.34 |
Upturn AI SWOT
Chegg Inc

Company Overview
History and Background
Chegg Inc. was founded in 2005 as Instatutor.com, an online tutoring service. It later rebranded as Chegg and expanded into textbook rentals and other student services. Over time, it has evolved into a comprehensive online learning platform, facing challenges in recent years with the advent of freely available AI tools.
Core Business Areas
- Chegg Services: Provides a suite of online learning resources, including homework help, textbook solutions, writing tools, and skill development courses.
- Required Materials: Primarily textbooks and e-books and services such as Textbook rentals and digital access (formerly called Chegg Study Pack). Although a major component of revenue in the past, this area is in decline.
Leadership and Structure
Nathan Schultz is the CEO of Chegg. The company operates with a functional organizational structure, dividing departments by expertise (e.g., Engineering, Marketing, Finance).
Top Products and Market Share
Key Offerings
- Chegg Study: Offers step-by-step solutions to textbook problems, expert Q&A, and practice exams. Chegg has a strong position in the online homework help market, but market share is hard to quantify exactly. Competitors include Course Hero, Quizlet, and direct competition from free AI tools such as ChatGPT, Google's Gemini, Microsoft's Copilot.
- Chegg Writing: Provides tools for grammar checking, plagiarism detection, and citation assistance. It is a subscription based service. Market share data is not readily available. Competitors include Grammarly and other online writing tools.
- Chegg Math Solver: This product addresses math specific questions that are in line with course work. Market share data is not readily available. Competitors include Wolfram Alpha and Photomath
Market Dynamics
Industry Overview
The online education market is growing, driven by increasing demand for flexible and affordable learning options. However, the market is becoming increasingly competitive, with a growing number of free and paid online resources.
Positioning
Chegg Inc. positions itself as a comprehensive online learning platform catering to college and high school students. Its competitive advantage lies in its extensive library of solutions, wide recognition among students, and brand reputation. However, it struggles against new AI tools.
Total Addressable Market (TAM)
The global online education market is estimated to be worth hundreds of billions of dollars. Chegg's position within the TAM is significant, although its growth is now challenged by the expansion of AI tools.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Large database of textbook solutions
- Established customer base
- Subscription-based revenue model
Weaknesses
- High reliance on textbook-related content
- Vulnerable to competition from free AI tools
- Concerns about academic integrity
- Fluctuating stock price
Opportunities
- Expansion into new subjects and skills
- Partnerships with universities
- International expansion
- Development of AI-powered learning tools
Threats
- Increasing competition from free AI tools
- Declining enrollment in traditional education
- Changes in textbook publishing industry
- Economic downturns impacting student spending
Competitors and Market Share
Key Competitors
- CRSE
- QUIZ
- GOOG
- MSFT
Competitive Landscape
Chegg faces intense competition from Course Hero (CRSE) and Quizlet (QUIZ) as well as broader competition from freely available AI tools from Google (GOOG) and Microsoft (MSFT). Chegg's advantage is its brand name recognition, but it must innovate to compete with AI tools.
Major Acquisitions
Mathway
- Year: 2017
- Acquisition Price (USD millions): 0
- Strategic Rationale: Expanded Chegg's math-solving capabilities and broadened its service offerings.
Growth Trajectory and Initiatives
Historical Growth: Chegg experienced significant growth prior to 2023, fueled by the increasing demand for online learning resources.
Future Projections: Analyst estimates show lower projections than the high-growth years for Chegg's revenue and earnings.
Recent Initiatives: Chegg is focusing on integrating AI into its platform and expanding its skill development offerings.
Summary
Chegg faces significant challenges as AI tools are now eroding their business. While Chegg has a strong brand and large database of solutions, it must innovate to remain competitive. The company's vulnerability to competition from free AI tools is a primary concern. Its growth trajectory is projected to be slower than the previous years.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings, Analyst reports, Market research reports
Disclaimers:
This analysis is based on available information and is not financial advice. Market conditions and company performance may change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Chegg Inc
Exchange NYSE | Headquaters Santa Clara, CA, United States | ||
IPO Launch date 2013-11-13 | CEO, President & Director Mr. Nathan Schultz | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 1241 | Website https://www.chegg.com |
Full time employees 1241 | Website https://www.chegg.com |
Chegg, Inc. provides individualized learning support to students that helps build essential academic, life, and job skills to achieve success in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, a language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside. The company also provides a skills-based learning platform to learn technical skills comprising AI, coding, data analytics, and cybersecurity, as well as competencies consisting of emotional intelligence, mindset, emerging leadership, and decision making. In addition, it rents and sells print textbooks and eTextbooks; and offers advertising services. The company serves students and companies through direct marketing channels and social media. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.

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