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ATA Creativity Global (AACG)
NASDAQ:AACG
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ATA Creativity Global
(NASDAQ:AACG)
47Neutral
ATA Creativity Global (AACG) vs. S&P 500 (SPY)
Market Cap
$29.73M
Dividend YieldN/A
Average Volume (3M)19.59K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth20.89%
EPS Growth10.87%
CountryUS
Employees599
SectorConsumer Cyclical
Sector Strength73
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.06
Shares Outstanding31,911,386
10 Day Avg. Volume19,953
30 Day Avg. Volume19,585
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.73
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
ATA Creativity Global Business Overview & Revenue Model
Company DescriptionATA Creativity Global (AACG) is an education services company that operates primarily in China. The company is dedicated to providing innovative and high-quality educational services, focusing on creativity cultivation. AACG offers a variety of educational programs designed to enhance creative thinking, including art and design courses, as well as other cultural and artistic activities. Its core services are tailored to students seeking to enhance their creative skills and pursue further education opportunities in creative fields.
How the Company Makes MoneyATA Creativity Global makes money through tuition fees and program-related charges paid by students enrolled in its educational programs. The company's revenue model is primarily based on offering specialized courses in art and design, which attracts students looking to develop their skills in these areas. AACG may also generate additional income through partnerships with educational institutions and cultural organizations that collaborate on program offerings or provide resources and expertise to enhance the curriculum. The company's focus on creativity and art education allows it to tap into a niche market of students and parents willing to invest in specialized education that prepares students for careers in creative industries.
ATA Creativity Global Financial Statement Overview
Summary
ATA Creativity Global shows revenue growth and improvements in cash flow management. However, persistent profitability issues, such as negative EBIT and net income, present significant challenges. The low leverage provides some financial stability, but the declining equity is concerning.Income Statement
The income statement shows some growth in total revenue, with a year-over-year increase of approximately 7.14% in 2023. However, the company has been consistently reporting negative EBIT and net income, indicating ongoing operational and profitability challenges. The gross profit margin has remained stable, but the negative net income margin highlights the company's struggle to control expenses and achieve profitability.45
Neutral
Balance Sheet
The balance sheet indicates a relatively low debt-to-equity ratio of 0.20, reflecting a conservative approach to leverage. However, stockholders' equity has decreased over the years, and the equity ratio stands at 25.18%, suggesting limited asset backing by equity. The overall financial stability is moderate, with a significant portion of assets financed by liabilities.50
Neutral
Cash Flow
The cash flow statement shows improvement in free cash flow from negative to positive in 2023, indicating enhanced cash management. The operating cash flow has also turned positive, which is a positive sign. However, the free cash flow to net income ratio and operating cash flow to net income ratio highlight challenges in translating profit into cash flow, given the negative net income.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 250.75M | 221.62M | 206.82M | 202.21M | 162.17M | 97.77M | Gross Profit |
| 129.97M | 114.66M | 102.51M | 104.80M | 63.65M | 35.86M | EBIT |
| -50.93M | -41.50M | -56.59M | -66.39M | -104.36M | -108.84M | EBITDA |
| -45.43M | -19.51M | -34.00M | -43.36M | -74.44M | -91.29M | Net Income Common Stockholders |
| -40.80M | -33.66M | -48.59M | -36.41M | -100.58M | -134.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 213.87M | 60.17M | 54.98M | 71.34M | 112.72M | 154.20M | Total Assets |
| 428.50M | 448.94M | 474.46M | 507.18M | 575.62M | 667.65M | Total Debt |
| 0.00 | 22.61M | 36.45M | 40.72M | 47.78M | 25.55M | Net Debt |
| -213.87M | -37.56M | -18.53M | -30.62M | -64.94M | -128.65M | Total Liabilities |
| 83.03M | 335.97M | 330.95M | 316.28M | 327.87M | 317.02M | Stockholders Equity |
| 345.47M | 113.04M | 143.10M | 187.77M | 198.40M | 300.24M |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 6.51M | -16.23M | -36.29M | -32.78M | -59.16M | Operating Cash Flow |
| 0.00 | 8.75M | -14.61M | -31.83M | -27.87M | -57.88M | Investing Cash Flow |
| 0.00 | -3.97M | -2.49M | -10.03M | -19.09M | -36.95M | Financing Cash Flow |
| 0.00 | 403.44K | 188.21K | 827.52K | 6.30M | 57.57M |
ATA Creativity Global Technical Analysis
Neutral
0.92
Price Trends
0.95
Negative
0.91
Positive
0.86
Positive
Market Momentum
<0.01
Positive
46.62
Neutral
53.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AACG, the sentiment is Neutral. The current price of 0.92 is below the 20-day moving average (MA) of 0.95, below the 50-day MA of 0.95, and above the 200-day MA of 0.86, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 53.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Performance Comparison
AACG
ATA Creativity Global
0.92
0.01
1.10%
FEDU
Four Seasons Education (Cayman)
9.00
0.04
0.45%
JZ
Jianzhi Education Technology Group Company Limited ADR
0.40
-1.68
-80.77%
ATA Creativity Global Earnings Call Summary
Earnings Call Date:May 16, 2025
(Q1-2025)
| % Change Since: -2.13%|
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%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.