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ATA Creativity Global (AACG)
NASDAQ:AACG
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ATA Creativity Global
(NASDAQ:AACG)
Rating:44Neutral
Price Target:
$1.00
▼(-13.04%Downside)
ATA Creativity Global (AACG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.21M
Dividend YieldN/A
Average Volume (3M)14.17K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth20.89%
EPS Growth10.87%
CountryUS
Employees599
SectorConsumer Cyclical
Sector Strength68
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.06
Shares Outstanding31,911,386
10 Day Avg. Volume19,639
30 Day Avg. Volume14,168
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)1.44
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.00Price Target Upside-13.04% Downside
Rating ConsensusHold
Number of Analyst Covering0
ATA Creativity Global Business Overview & Revenue Model
Company DescriptionATA Creativity Global (AACG) is an educational services company specializing in providing innovative and creative educational experiences. The company operates in the education sector, focusing on delivering personalized learning solutions and creative teaching methodologies. AACG offers a wide range of services, including art education, online learning platforms, and various workshops aimed at enhancing creative thinking and skills development.
How the Company Makes MoneyATA Creativity Global generates revenue primarily through tuition fees and educational service charges. The company offers a variety of educational programs and workshops, which are paid for by students or educational institutions. Additionally, AACG may partner with schools, colleges, or other educational organizations to provide specialized curriculum and training services, generating income from these collaborations. The company's emphasis on creative and personalized education solutions helps attract a diverse student base, contributing to its revenue streams.
ATA Creativity Global Earnings Call Summary
Earnings Call Date:May 16, 2025
(Q1-2025)
| % Change Since: 22.34%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant growth in revenue and strategic achievements, despite challenges with student enrollment numbers and continued net loss.Q1-2025 Updates
Positive Updates
Increase in Net Revenue and Gross Profit
Q1 2025 saw a 16% increase in both net revenue and gross profit, driven by portfolio training and research-based learning services.
Growth in Portfolio Training Programs
Portfolio training program credit hours delivery increased by 5.8% and generated an 11.5% growth in revenue.
Recognition as a Leading Brand
ACG was awarded the 2025 Forbes China Studying Abroad leading brand, highlighting its positive industry reputation.
Positive Student Feedback and Admissions
Students received admissions from prestigious institutions, including Ivy League schools and top art schools.
Efficient Cost Management
Operating expenses slightly decreased, and loss from operations reduced from RMB21.7 million in Q1 2024 to RMB16.8 million in Q1 2025.
Negative Updates
Decrease in Student Enrollment
Total student enrollment decreased by 19.4% in Q1 2025 compared to the previous year.
Net Loss
Net loss attributable to ACG during Q1 2025 was RMB13.3 million, though this was an improvement from the previous year's net loss of RMB17.9 million.
Company Guidance
During the first quarter of 2025, ATA Creativity Global (ACG) reported a 15.9% increase in total net revenues, reaching RMB55.8 million, driven primarily by their portfolio training and research-based learning services. The company saw an 11.5% growth in revenue from portfolio training programs, which accounted for approximately 74% of total credit hours delivered. Despite a 19.4% decrease in total student enrollment, the delivery of credit hours increased by 5.8%, with project-based programs experiencing a 15.5% rise. ACG's gross profit also rose by 15.9% to RMB25.4 million, maintaining a gross margin of 45.5%. Operating expenses slightly decreased to RMB42.2 million, contributing to a reduced net loss of RMB13.3 million compared to the prior year. For the full year 2025, ACG expects total net revenues to range between RMB276 million and RMB281 million, representing a year-over-year increase of 3% to 5%.ATA Creativity Global Financial Statement Overview
Summary
Despite positive revenue growth, AACG faces significant profitability and cash flow challenges. The company's leverage is manageable, but declining equity and negative free cash flow raise concerns about financial stability.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 268.06M | 221.62M | 206.82M | 202.21M | 162.17M |
| Gross Profit | 141.26M | 114.66M | 102.51M | 104.80M | 63.65M |
| EBITDA | -18.82M | -19.51M | -34.00M | -43.36M | -74.44M |
| Net Income | -36.10M | -33.66M | -48.59M | -36.41M | -100.58M |
Balance Sheet | |||||
| Total Assets | 456.93M | 448.94M | 474.46M | 507.18M | 575.62M |
| Cash, Cash Equivalents and Short-Term Investments | 36.52M | 60.17M | 54.98M | 71.34M | 112.72M |
| Total Debt | 35.21M | 22.61M | 36.45M | 40.72M | 47.78M |
| Total Liabilities | 377.28M | 335.97M | 330.95M | 316.28M | 327.87M |
| Stockholders Equity | 79.71M | 113.04M | 143.10M | 187.77M | 198.40M |
Cash Flow | |||||
| Free Cash Flow | -23.37M | 6.51M | -16.23M | -36.29M | -32.78M |
| Operating Cash Flow | -3.35M | 8.75M | -14.61M | -31.83M | -27.87M |
| Investing Cash Flow | -20.26M | -3.97M | -2.49M | -10.03M | -19.09M |
| Financing Cash Flow | -93.70K | 403.44K | 188.21K | 827.52K | 6.30M |
ATA Creativity Global Technical Analysis
Positive
1.15
Price Trends
0.87
Positive
0.90
Positive
0.91
Positive
Market Momentum
0.03
Negative
76.49
Negative
50.00
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 1.15 is above the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.87, and above the 200-day MA of 0.91, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 76.49 is Negative, neither overbought nor oversold. The STOCH value of 50.00 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
Performance Comparison
AACG
ATA Creativity Global
1.15
0.48
71.64%
FEDU
Four Seasons Education (Cayman)
15.60
3.77
31.87%
JZ
Jianzhi Education Technology Group Company Limited ADR
1.86
-7.10
-79.24%
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.