Chegg, Inc. (CHGG) vs Franklin Covey Company (FC)

Chegg, Inc. and Franklin Covey Company are both Education & Training Services companies. Franklin Covey Company is the larger, with a market value of $182.5M against $66.5M — 2.7× the size. Chegg, Inc. has negative trailing earnings, so its P/E is not meaningful; Franklin Covey Company trades at 89.2×. Franklin Covey Company grew revenue faster over the last twelve months: −6.14% against −47.7%. Franklin Covey Company has the higher net margin (0.83% vs −17.2%) and the higher return on invested capital (13.0% vs −37.8%). Across the 18 metrics below, Franklin Covey Company leads on 12 and Chegg, Inc. on 6.

Valuation

Metric CHGG FC Education & Training Services median
P/E n/m 89.22 12.09
P/S 0.28 0.69 0.80
P/B 0.58 4.21 1.39
Price to free cash flow n/m 16.83 7.31
EV/EBITDA 7.85 8.52 6.36
EV/Sales 0.37 0.65 0.58
Earnings yield (61.70%) 1.12% 3.29%
Free cash flow yield (0.77%) 5.94% 3.03%

Profitability

Metric CHGG FC Education & Training Services median
Gross margin 56.38% 75.18% 55.03%
Operating margin (18.61%) 2.45% 0.00%
Net margin (17.17%) 0.83% 1.77%
Free cash flow margin (0.22%) 4.09% 0.00%
Return on equity (30.74%) 4.03% 0.00%
Return on assets (14.20%) 1.05% 0.00%
Return on invested capital (37.84%) 12.98% 0.00%

Growth

Metric CHGG FC Education & Training Services median
Revenue growth (TTM) (47.68%) (6.14%) 5.84%
EPS growth (last fiscal year) 88.15% (86.21%) 14.71%
Revenue growth, 5-year CAGR (10.17%) 6.12% 4.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CHGG FC Education & Training Services median
Debt to equity 0.00 0.00 0.05
Current ratio 1.35 0.66 1.37
Net debt to EBITDA 1.93 (1.65) (0.04)

Dividend

Metric CHGG FC Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric CHGG FC Education & Training Services median
Market cap 66.53m 182.51m 59.54m

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