Chegg

CHGG

Education & Training Services · Consumer Defensive

Price

$0.82

+0.04 (+4.70%)

Market Cap

$91.4M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count falling — buybacks

−23.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 141.3M (2021) → 107.5M (2025)

Chegg is an online learning company that helps students with schoolwork, homework, and test prep. Its main products include step-by-step homework help, textbook rentals, tutoring, and study tools. The company mostly serves high school and college students in the United States.

Chegg makes money primarily through subscriptions, where students pay a monthly or annual fee to access its learning tools. It operates mainly in the US but has been trying to grow internationally. The company's main competitive advantage was being an early, well-known name in digital student help — but that position has been seriously damaged by the rise of free AI tools like ChatGPT, which can answer homework questions without a subscription. Chegg's subscriber count has fallen sharply, and its small market cap reflects how much investors doubt the company can rebuild a paying user base in a world where AI tutoring is essentially free.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-47.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+101.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$93M/ year

↓ Declining (-45% vs prior year)

24.8% of revenue

12.4x the sector average (2%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

8.6%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$34M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Chegg's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

59.9%

Premium pricing power — 59.9% gross margin

Operating Margin

-1.6%

Losing money on operations — -1.6%

ROCE

-0.7%

Weak — -0.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

-43.5%

Shrinking sales (-43.5% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-8.0%

Burning cash (-8.0%)

Free cash flow is negative. They are burning cash, not generating it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

0.28

Conservative — low debt load (0.28)

Interest Cover

N/A

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial