Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
CheggCHGG -2.63%37 5-Year ROIIC % is 19.74 as of Dec. 2025. 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 213 Education companies, Chegg ranks better than 69.95% on this metric.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Chegg's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 19.74%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Chegg's 5-Year ROIIC % or its related term are showing as below:
CHGG's 5-Year ROIIC % is ranked better than 69.95% of 213
companies
in the Education industry
Industry Median: 5.06
vs CHGG: 19.74
Chegg (NYSE:CHGG) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Chegg 5-Year ROIIC % Related Terms
Chegg 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Chegg's 5-Year ROIIC % 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.
For the Education & Training Services subindustry, Chegg's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Education Industry
For the Education industry and Consumer Defensive sector, Chegg's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Chegg's 5-Year ROIIC % falls into.
Chegg's 5-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( -114.856 (Dec. 2025) - 56.753 (Dec. 2020) )
/
( 239.842 (Dec. 2025) - 1109.041 (Dec. 2020) )
=
-171.609
/
-869.199
=
19.74%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Chegg (CHGG) has a 5-Year ROIIC % of 19.74 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Chegg and its competitors. According to the industry distribution chart, Chegg ranks #64 out of 213 companies in the Education industry, placing it in the top 30%.
Is Chegg's 5-Year ROIIC % too high?
Chegg's current 5-Year ROIIC % is 19.74. The Education industry median 5-Year ROIIC % is 5.06. Chegg's value of 19.74 is 290.1% above this industry median. Based on the distribution chart, Chegg ranks #64 out of 213 companies in the Education industry, which is above the industry midpoint. 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 5-Year ROIIC % compare to LGCY and COE?
According to the Education industry distribution chart, Chegg ranks #64 out of 213 companies for 5-Year ROIIC %. This puts Chegg in the upper half of its industry. The industry median 5-Year ROIIC % is 5.06. Chegg's value of 19.74 is 290.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Education company?
The median 5-Year ROIIC % among Education companies is 5.06, based on 213 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chegg's current 5-Year ROIIC % of 19.74 is 290.1% above 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Chegg and its competitors. For the Education industry, the median 5-Year ROIIC % is 5.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chegg's current 5-Year ROIIC % is 19.74. 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 $0.82 — trading 2.9% above its estimated fair value. The current 5-Year ROIIC % is 19.74 and 290.1% above the Education industry median of 5.06. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Chegg (CHGG), the current 5-Year ROIIC % is 19.74 as of Dec. 2025. 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 $0.82 is trading 2.9% above its estimated GF Value™ of $0.80.
GuruFocus considers Chegg to be Fairly Valued.
Key valuation signals for CHGG:
5-Year ROIIC %: 19.74
GF Value™: $0.80 vs. price of $0.82 (2.9% above fair value)
Industry Position: 290.1% above the Education median (#64 of 213)
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
5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHGG has been successfully added to your 
