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ATA Creativity Global (AACG)
NASDAQ:AACG
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ATA Creativity Global
(NASDAQ:AACG)
Rating:54Neutral
Price Target:
$2.00
▼(-5.66% Downside)
ATA Creativity Global (AACG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.74M
Dividend YieldN/A
Average Volume (3M)458.36K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth15.48%
EPS Growth24.98%
CountryUS
Employees599
SectorConsumer Defensive
Sector Strength44
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.05
Shares Outstanding31,911,386
10 Day Avg. Volume87,298
30 Day Avg. Volume458,357
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.18
Enterprise Value/Ebitda-1.27
Forecast
1Y Price Target
$2.00Price Target Upside-5.66% Downside
Rating ConsensusHold
Number of Analyst Covering0
ATA Creativity Global Business Overview & Revenue Model
Company DescriptionATA Creativity Global, together with its subsidiaries, provides educational services to individual students through its training center network in China and internationally. Its educational services include portfolio training, research-based learning, overseas study counselling, in-school art classes through cooperation with high schools, foreign language training services, junior art education, and other related educational services to its students. The company also offers online courses for students. As of December 31, 2021, it operated through 21 training centers in 20 cities in China. The company was formerly known as ATA Inc. and changed its name to ATA Creativity Global in September 2019. ATA Creativity Global was founded in 1999 and is headquartered in Beijing, China.
How the Company Makes MoneyATA Creativity Global generates revenue through multiple streams, primarily from tuition fees for its various educational programs and workshops. This includes income from after-school programs, summer camps, and online courses, which are priced based on the duration and complexity of the courses offered. Additionally, the company may engage in partnerships with schools and educational institutions, providing tailored programs that can contribute to its revenue. Merchandise sales related to its courses, such as art supplies or educational materials, could also serve as an auxiliary revenue stream. Marketing collaborations and sponsorships with relevant brands in the creative education space may further enhance its earnings.
ATA Creativity Global Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with significant revenue growth and improved financial performance. While there were some challenges, such as a decrease in student enrollment and minimal growth in credit hours delivered, the company showed strong progress with reduced losses and substantial growth in key revenue sectors.Q2-2025 Updates
Positive Updates
Significant Revenue Growth in Key Services
Combined revenue from overseas study counseling services, other educational services, and research-based learning services increased by more than 50% year-over-year.
Improved Financial Metrics
Total net revenues for Q2 2025 were RMB 55.9 million, an increase of 8% from Q2 2024. Gross profit increased by 10.2%, and gross margin improved to 50.6% from 49.6%.
Decrease in Operating Expenses
Total operating expenses decreased by 9.4% to RMB 42.1 million in Q2 2025, with a notable reduction in sales expenses and general administrative expenses.
Narrowed Net Loss
Net loss attributable to ACG during Q2 2025 was RMB 10.8 million, improved from RMB 16.8 million in the prior year period.
Strong Student Admissions
ACG students received over 4,000 offers from prestigious institutions across six major art disciplines, including offers from Cornell University, Carnegie Mellon University, and Columbia University.
Negative Updates
Decline in Student Enrollment
Total student enrollment for Q2 2025 was 1,050, a decrease of 3.1% from the prior year period, attributed to normalized demand versus a rebound in previous years.
Minimal Growth in Credit Hours Delivered
Credit hours delivered increased only slightly by 0.3% compared to the prior year period, despite a 25.7% increase in project-based programs.
Company Guidance
During the ATA Creativity Global second quarter 2025 financial results call, key metrics highlighted a year-over-year increase in net revenues and gross profit, with a notable 50% growth in revenue from overseas study counseling, other educational services, and research-based learning services. Total net revenues for Q2 2025 were RMB 55.9 million, an 8% increase from Q2 2024, and gross profit rose by 10.2% to RMB 28.3 million. Operating expenses decreased by 9.4% to RMB 42.1 million, resulting in a narrowed operational loss of RMB 13.7 million. For the first half of 2025, net revenues increased by 11.8% to RMB 111.7 million, with gross profit up 12.8% to RMB 53.7 million. Total operating expenses for the half-year decreased by 6.4% to RMB 84.3 million. Looking ahead, the company expects total net revenues for the full year 2025 to be between RMB 276 million and RMB 281 million, reflecting a 3% to 5% year-over-year increase. ACG's focus remains on organic growth, enhancing cost discipline, and expanding international partnerships to maintain its position as a leader in creative art education services.ATA Creativity Global Financial Statement Overview
Summary
ATA Creativity Global shows positive revenue growth but is hindered by ongoing profitability and cash flow challenges. The company's leverage is manageable, yet declining equity and cash flow trends raise financial stability concerns. Continued focus on improving operational efficiency and profitability is crucial to enhance the overall financial health.Income Statement
The income statement highlights consistent revenue growth over the years, with a significant increase from 2023 to 2024. However, the company is experiencing ongoing losses, as evidenced by negative net income and EBIT margins. The gross profit margin is relatively healthy, but the high operating expenses and negative EBIT and EBITDA margins indicate profitability challenges.35
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the declining stockholders' equity and total assets raise concerns. The equity ratio has been decreasing, indicating a weakening capital structure, although the company's cash position provides some stability.40
Negative
Cash Flow
Cash flow analysis reveals a declining trend in operating cash flow, turning negative in 2024. Free cash flow has also deteriorated, indicating challenges in generating cash from operations. The negative free cash flow to net income ratio suggests cash flow issues amidst ongoing losses, posing potential liquidity risks.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 275.73M | 268.06M | 221.62M | 206.82M | 202.21M | 162.17M |
| Gross Profit | 144.74M | 141.26M | 114.66M | 102.51M | 104.80M | 63.65M |
| EBITDA | -20.55M | -18.82M | -19.51M | -34.00M | -43.36M | -74.44M |
| Net Income | -31.49M | -36.10M | -33.66M | -48.59M | -36.41M | -100.58M |
Balance Sheet | ||||||
| Total Assets | 457.34M | 456.93M | 448.94M | 474.46M | 507.18M | 575.62M |
| Cash, Cash Equivalents and Short-Term Investments | 39.41M | 36.52M | 60.17M | 54.98M | 71.34M | 112.72M |
| Total Debt | 46.91M | 35.21M | 22.61M | 36.45M | 40.72M | 47.78M |
| Total Liabilities | 390.95M | 377.28M | 335.97M | 330.95M | 316.28M | 327.87M |
| Stockholders Equity | 66.46M | 79.71M | 113.04M | 143.10M | 187.77M | 198.40M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -23.37M | 6.51M | -16.23M | -36.29M | -32.78M |
| Operating Cash Flow | 0.00 | -3.35M | 8.75M | -14.61M | -31.83M | -27.87M |
| Investing Cash Flow | 0.00 | -20.26M | -3.97M | -2.49M | -10.03M | -19.09M |
| Financing Cash Flow | 0.00 | -93.70K | 403.44K | 188.21K | 827.52K | 6.30M |
ATA Creativity Global Technical Analysis
Positive
2.12
Price Trends
1.47
Positive
1.18
Positive
1.05
Positive
Market Momentum
0.18
Positive
58.45
Neutral
58.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AACG, the sentiment is Positive. The current price of 2.12 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 1.47, and above the 200-day MA of 1.05, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 58.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AACG.
ATA Creativity Global Risk Analysis
ATA Creativity Global disclosed 64 risk factors in its most recent earnings report. ATA Creativity Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ATA Creativity Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.49B | 14.73 | -2.68% | 3.15% | 1.98% | -5.13% | |
54 Neutral | $65.74M | ― | -37.39% | ― | 15.48% | 24.98% | |
51 Neutral | $31.75M | 250.88 | 0.17% | 15.83% | 98.22% | -82.71% | |
| ― | $16.73M | ― | -16.90% | ― | ― | ― | |
| ― | $2.56M | ― | -16.22% | ― | ― | ― | |
| ― | $26.83M | ― | -19.03% | ― | ― | ― | |
41 Neutral | $4.37M | ― | -168.81% | ― | -44.85% | 92.11% |
* Consumer Defensive Sector Average
Performance Comparison
AACG
ATA Creativity Global
2.12
1.50
241.94%
FEDU
Four Seasons Education (Cayman)
14.30
2.56
21.81%
EDTK
Skillful Craftsman Education Technology
1.06
0.00
0.00%
LXEH
Lixiang Education Holding Co
2.28
-0.42
-15.56%
KIDZ
Classover Holdings
1.33
-9.79
-88.04%
JZ
Jianzhi Education Technology Group Company Limited ADR
1.59
-8.11
-83.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.