Is CHEGG, INC (CHGG) Halal?

NYSE Consumer Defensive United States $77M
✗ NOT HALAL
Confidence: 83/100
CHEGG, INC (CHGG) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 727.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. CHEGG, INC operates in the Consumer Defensive sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 727.2%
/ 30%
455.2%
/ 30%
34.1%
/ 30%
N/A ✗ NOT HALAL
DJIM 727.2%
/ 33%
455.2%
/ 33%
34.1%
/ 33%
N/A ✗ NOT HALAL
MSCI 58.1%
/ 33%
36.3%
/ 33%
2.7%
/ 33%
N/A ✗ NOT HALAL
S&P 727.2%
/ 33%
455.2%
/ 33%
34.1%
/ 33%
N/A ✗ NOT HALAL
FTSE 58.1%
/ 33%
36.3%
/ 33%
2.7%
/ 50%
N/A ✗ NOT HALAL

Financial Highlights

EPS
$-0.96
P/B Ratio
0.6
EV/EBITDA
1.8
EV: $77M
Revenue
$377M
Growth: -49.4%
Beta
2.0
High volatility
Current Ratio
0.9

Profitability

Gross Margin 64.5%
Operating Margin -2.6%
Net Margin -27.4%
Return on Equity (ROE) -66.2%
Return on Assets (ROA) -3.8%

Cash Flow & Balance Sheet

Operating Cash Flow$15M
Free Cash Flow-$13M
Total Debt$69M
Debt-to-Equity61.2
Current Ratio0.9
Total Assets$278M

Price & Trading

Last Close$0.62
50-Day MA$0.66
200-Day MA$1.10
Avg Volume1.2M
Beta2.0
52-Week Range
$0.44
$1.90

About CHEGG, INC (CHGG)

CEO
Mr. Daniel Lee Rosensweig
Employees
564
Sector
Consumer Defensive
Industry
Education & Training Services
Country
United States
Exchange
NYSE
Market Cap
$77M
Currency
USD

Chegg, Inc. provides a learning platform helping businesses bring new skills to their workforce and giving lifelong learners and students the skills and confidence to succeed in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math provides a computational engine to help them understand and solve math problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services. The company also provides a skills-based learning platform to learn technical skills comprising AI, coding, data analytics, and cybersecurity. In addition, it rents and sells print textbooks and eTextbooks; and offers advertising services. The company serves students and companies through direct marketing channels and social media. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.

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Frequently Asked Questions

Is CHEGG, INC (CHGG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), CHEGG, INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is CHEGG, INC's debt ratio?

CHEGG, INC's debt ratio is 727.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 58.1%.

What are CHEGG, INC's key financial metrics?

CHEGG, INC has a market capitalization of $77M, and revenue of $377M. The company maintains a gross margin of 64.5% and a net margin of -27.4%. Return on equity stands at -66.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.