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 $205.1M against $84.4M — 2.4× the size. Chegg, Inc. has negative trailing earnings, so its P/E is not meaningful; Franklin Covey Company trades at 99.7×. Franklin Covey Company grew revenue faster over the last twelve months: −6.14% against −47.6%. Franklin Covey Company has the higher net margin (0.83% vs −20.0%) and the higher return on invested capital (13.0% vs −75.1%). Across the 18 metrics below, Franklin Covey Company leads on 13 and Chegg, Inc. on 5.

Valuation

Metric CHGG FC Education & Training Services median
P/E n/m 99.72 13.22
P/S 0.31 0.77 0.99
P/B 0.69 4.71 1.62
Price to free cash flow n/m 18.81 10.06
EV/EBITDA 38.94 9.58 8.56
EV/Sales 0.27 0.73 0.78
Earnings yield (66.85%) 1.00% 3.17%
Free cash flow yield (8.56%) 5.32% 2.81%

Profitability

Metric CHGG FC Education & Training Services median
Gross margin 57.95% 75.18% 54.64%
Operating margin (20.94%) 2.45% 0.00%
Net margin (19.96%) 0.83% 2.98%
Free cash flow margin (2.62%) 4.09% 0.00%
Return on equity (38.34%) 4.03% 0.00%
Return on assets (16.77%) 1.05% 0.00%
Return on invested capital (75.06%) 12.98% 0.00%

Growth

Metric CHGG FC Education & Training Services median
Revenue growth (TTM) (47.59%) (6.14%) 6.97%
EPS growth (last fiscal year) 88.15% (86.21%) 15.68%
Revenue growth, 5-year CAGR (10.17%) 6.12% 4.27%
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 1.17 0.66 1.33
Net debt to EBITDA 1.93 (1.65) (0.15)

Dividend

Metric CHGG FC Education & Training Services median
Dividend yield — — 1.84%
Payout ratio — — 0.23

Size

Metric CHGG FC Education & Training Services median
Market cap 84.35m 205.09m 68.84m

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