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Ata Creativity Global (AACG)
:AACG
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ATA Creativity Global
(NASDAQ:AACG)
Rating:51Neutral
Price Target:
$1.50
▼(-27.18% Downside)
ATA Creativity Global (AACG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.58M
Dividend YieldN/A
Average Volume (3M)462.80K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth15.48%
EPS Growth24.98%
CountryUS
Employees599
SectorConsumer Defensive
Sector Strength59
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.05
Shares Outstanding31,911,386
10 Day Avg. Volume1,053,466
30 Day Avg. Volume462,796
Financial Highlights & Ratios
PEG Ratio-0.42
Price to Book (P/B)1.22
Price to Sales (P/S)0.36
P/FCF Ratio-4.16
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.18
Enterprise Value/Ebitda-0.68
Forecast
1Y Price Target
$1.50Price Target Upside-27.18% Downside
Rating ConsensusHold
Number of Analyst Covering1
ATA Creativity Global Business Overview & Revenue Model
Company DescriptionATA Creativity Global (AACG) is an innovative education company focused on providing comprehensive creative arts and technology-based learning experiences. Operating primarily in the sectors of creative education and technology integration, AACG offers a range of programs and services designed to nurture creativity in children and young adults. Its core offerings include after-school programs, summer camps, and online courses that cover subjects such as art, music, coding, and design, all aimed at fostering a creative mindset and skill set in students.
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: 28.75%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in revenues from educational services, improved gross profit and margins, and a decrease in operating expenses. However, there were concerns over decreased student enrollment and a net loss. Despite these challenges, the company demonstrated overall financial and operational improvements.Q2-2025 Updates
Positive Updates
Significant Revenue Growth in Educational Services
Second quarter 2025 saw a year-over-year net revenue increase of more than 50% from overseas study counseling services, other educational services, and research-based learning services.
Improvement in Gross Profit and Margin
Gross profit for second quarter 2025 was RMB 28.3 million, an increase of 10.2% from the previous year, with gross margin improving to 50.6% from 49.6%.
Decreased Operating Expenses
Operating expenses for second quarter 2025 decreased by 9.4% compared to the prior year, mainly due to reduced sales and administrative expenses.
Narrowed Operational Loss
Operational loss in second quarter 2025 narrowed to RMB 13.7 million from RMB 20.8 million in the same period of 2024.
Strong Enrollment Offers
ACG students received over 4,000 offers from prestigious institutions across various art disciplines, including top universities like Cornell and Columbia.
Negative Updates
Decrease in Student Enrollment
Total student enrollment for second quarter 2025 decreased by 3.1% from the prior year.
Net Loss Despite Revenue Growth
Net loss attributable to ACG during second quarter 2025 was RMB 10.8 million, although it was an improvement from RMB 16.8 million in the previous year.
Company Guidance
In the second quarter of 2025, ATA Creativity Global (ACG) reported a notable increase in net revenues and gross profit, driven by a more than 50% rise in revenue from overseas study counseling services and other educational services. Total net revenues reached RMB 55.9 million, up 8% from the previous year, while gross profit increased by 10.2% to RMB 28.3 million. The company highlighted a significant reduction in operating expenses, which decreased by 9.4% to RMB 42.1 million, resulting in a narrowed operational loss of RMB 13.7 million. Despite a slight 3.1% decrease in total student enrollment to 1,050, ACG saw a substantial increase in project-based programs, with credit hours delivered up by 25.7%. For the full year 2025, ACG expects net revenues to rise by 3% to 5%, reaching approximately RMB 276 million to RMB 281 million, with portfolio training remaining a key revenue driver. The company continues to focus on organic growth, cost discipline, and enhancing its educational offerings to support diverse student needs, aiming to finish the year strong and maintain its leadership in China's creative art education market.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 | -38.16M | -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
2.06
Price Trends
1.08
Positive
1.01
Positive
0.96
Positive
Market Momentum
0.25
Negative
63.17
Neutral
68.49
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 2.06 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.08, and above the 200-day MA of 0.96, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 63.17 is Neutral, neither overbought nor oversold. The STOCH value of 68.49 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $20.97B | 14.56 | -8.07% | 3.14% | 2.79% | -9.90% | |
55 Neutral | $33.89M | 298.11 | 0.17% | 15.21% | 98.22% | -82.71% | |
51 Neutral | $65.58M | ― | -37.39% | ― | 15.48% | 24.98% | |
39 Underperform | $4.03M | ― | -168.81% | ― | -44.85% | 92.11% |
* Consumer Defensive Sector Average
Performance Comparison
AACG
ATA Creativity Global
2.06
1.46
243.33%
FEDU
Four Seasons Education (Cayman)
15.00
3.54
30.89%
JZ
Jianzhi Education Technology Group Company Limited ADR
1.70
-7.60
-81.72%
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.