Chegg

CHGG

Education & Training Services · Consumer Defensive

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Winston Score History

The full picture

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.

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

-50.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+90.9% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

8.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$72M 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

Profit per sale

Gross Margin

54.5%

Healthy — 54.5% gross margin

Profit after running costs

Operating Margin

-6.1%

Losing money on operations — -6.1%

Return on the money invested

ROCE

-1.3%

Weak — -1.3% return on capital

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

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Growth

Sales growth

Sales YoY

-47.6%

Shrinking sales (-47.6% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-0.3%

Burning cash (-0.3%)

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

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Stability

What it owes vs what it owns

Debt / Equity

0.29

Conservative — low debt load (0.29)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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