CheggCHGG -4.52%37 Pretax Margin % is 0.14% as of Mar. 2026. GuruFocus rates CHGG with a GF Score™ of 37/100 and a GF Value™ of $0.80 (Fairly Valued). The stock has 5 warning signs investors should review. Among 255 Education companies, Chegg ranks worse than 86.27% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Chegg's Pre-Tax Income for the
three
months ended in Mar. 2026 was $0.1 Mil. Chegg's Revenue for the
three
months ended in Mar. 2026 was $63.3 Mil. Therefore, Chegg's pretax margin for the quarter that ended in Mar. 2026 was 0.14%.
The historical rank and industry rank for Chegg's Pretax Margin % or its related term are showing as below:
CHGG'
s Pretax Margin % Range Over the Past 10 Years
Min: -111.46 Med: -2.95 Max: 13.55
Current: -26.22
CHGG's Pretax Margin % is ranked worse than 86.27% of 255
companies
in the Education industry
Industry Median: 8.24
vs CHGG: -26.22
Chegg (NYSE:CHGG) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Chegg Pretax Margin % Related Terms
Chegg Pretax Margin % Historical Data
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The historical data trend for Chegg's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHGG vs LGCY, COE, STG: Pretax Margin % Comparison
For the Education & Training Services subindustry, Chegg's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chegg Pretax Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Chegg's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Chegg's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Chegg (CHGG) has a Pretax Margin % of 0.14% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Chegg and its competitors. According to the industry distribution chart, Chegg ranks #220 out of 255 companies in the Education industry, placing it in the top 86.3%.
Is Chegg's Pretax Margin % too high?
Chegg's current Pretax Margin % is 0.14%. The Education industry median Pretax Margin % is 8.24. Chegg's value of 0.14% is 98.3% below this industry median. Based on the distribution chart, Chegg ranks #220 out of 255 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Chegg has a GF Score™ of 37/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chegg's Pretax Margin % compare to LGCY and COE?
According to the Education industry distribution chart, Chegg ranks #220 out of 255 companies for Pretax Margin %. This places Chegg in the lower half of its industry. The industry median Pretax Margin % is 8.24. Chegg's value of 0.14% is 98.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Education company?
The median Pretax Margin % among Education companies is 8.24, based on 255 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chegg's current Pretax Margin % of 0.14% is 98.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Chegg and its competitors. For the Education industry, the median Pretax Margin % is 8.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chegg's current Pretax Margin % is 0.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chegg stock overvalued right now?
Based on GuruFocus' analysis, Chegg (CHGG) is currently considered Fairly Valued. The stock's GF Value™ is $0.80, compared to a current price of $0.85 — trading 6.7% above its estimated fair value. The current Pretax Margin % is 0.14% and 98.3% below the Education industry median of 8.24. Chegg's overall GF Score™ is 37/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Chegg (CHGG), the current Pretax Margin % is 0.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Chegg (CHGG) Overvalued in 2026?
Based on GuruFocus' analysis, Chegg stock appears to be overvalued.
The current stock price of $0.85 is trading 6.7% above its estimated GF Value™ of $0.80.
GuruFocus considers Chegg to be Fairly Valued.
Key valuation signals for CHGG:
Pretax Margin %: 0.14%
GF Value™: $0.80 vs. price of $0.85 (6.7% above fair value)
Industry Position: 98.3% below the Education median (#220 of 255)
No single metric tells the full story. See the CHGG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chegg Inc is an American educational services company. The Chegg platform provides products and services to support learners with their academic course materials, as well as their career and personal skills development. The company's service and product offerings fall into two categories: Chegg Skilling; and Academic Services, which derives maximum revenue. Geographically, it derives in United States and International.
37GF Score
Get the complete analysis for CHGG
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