ATA Creativity Global (AACG) AI Stock Analysis

• Market Cap: $37.02M
• Dividend Yield: N/A
• Average Volume (3M): 85.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 12.01%
• EPS Growth: 79.79%
• Country: US
• Employees: 599
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.01
• Shares Outstanding: 31,911,386
• 10 Day Avg. Volume: 71,387
• 30 Day Avg. Volume: 85,501
• 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 Cap: 0.70
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.18
• Enterprise Value/Ebitda: 207.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $1.00 ▼(-7.41% Downside)

The overall stock score of 40 reflects significant financial performance challenges, including ongoing losses and cash flow issues, which are the most impactful factors. Technical analysis indicates bearish momentum, and valuation metrics suggest limited attractiveness. While the earnings call provided a positive outlook, it was not enough to offset the financial and technical challenges.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong demand for educational services and strategic expansion, supporting long-term market position.

Cost Management

Effective cost management enhances profitability potential and financial stability, crucial for sustaining growth and competitiveness.

Strategic Initiatives

Innovative projects expand service offerings and attract diverse student demographics, strengthening market presence and revenue streams.

Negative Factors

Profitability Challenges

Persistent profitability issues can hinder reinvestment in growth initiatives and affect long-term financial health and investor confidence.

Cash Flow Issues

Negative cash flow impacts liquidity and limits the ability to fund operations and strategic investments, posing risks to sustainability.

Student Enrollment Decline

Declining enrollment may affect future revenue growth and market share, necessitating efforts to attract and retain students.

ATA Creativity Global Business Overview & Revenue Model

Company Description

ATA 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 Money

ATA Creativity Global generates revenue through multiple streams, primarily from tuition fees collected for its educational programs, both online and in-person. The company also earns income from partnerships with schools and educational institutions that integrate AACG's curriculum and resources into their offerings. Additionally, revenue is generated through workshops, creative camps, and special events designed for skill enhancement in the creative arts. Strategic collaborations with technology providers and content creators further contribute to AACG's earnings by enhancing its course offerings and expanding its market reach.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	279.90M	268.06M	221.62M	206.82M	202.21M	162.17M
Gross Profit	143.73M	141.26M	114.66M	102.51M	104.80M	57.74M
EBITDA	125.83K	-18.82M	-19.51M	-34.00M	-43.36M	-74.44M
Net Income	-8.49M	-36.10M	-33.66M	-47.89M	-33.65M	-92.20M
Balance Sheet
Total Assets	462.53M	456.93M	448.94M	474.46M	507.18M	575.62M
Cash, Cash Equivalents and Short-Term Investments	96.81M	36.52M	60.17M	54.98M	71.34M	112.72M
Total Debt	65.88M	35.21M	22.61M	36.45M	40.72M	47.78M
Total Liabilities	403.71M	377.28M	335.97M	330.95M	316.28M	327.87M
Stockholders Equity	58.89M	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

• Technical Analysis Sentiment: Negative
• Last Price: 1.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AACG, the sentiment is Negative. The current price of 1.08 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.39, and below the 200-day MA of 1.21, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 25.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AACG.

ATA Creativity Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AMBO	52 Neutral	$11.63M	―	―	―	―	―
YQ	50 Neutral	$42.65M	-2.20	-36.34%	―	-21.96%	53.43%
FEDU	47 Neutral	$31.00M	240.61	0.17%	―	99.62%	-81.99%
AACG	40 Underperform	$37.02M	-10.58	-13.26%	―	12.01%	79.79%
EEIQ	38 Underperform	$8.56M	-1.58	-48.49%	―	44.99%	61.58%

ATA Creativity Global Corporate Events

ATA Creativity Global Reports Financial Results for Nine Months Ending September 2025

ATA Creativity Global reported its financial results for the nine-month period ending September 30, 2025, showing a net revenue increase from RMB167.1 million in 2024 to RMB179.0 million in 2025. Despite a net loss reduction from RMB49.4 million to RMB21.7 million, the company faces challenges such as regulatory changes, competition, and geopolitical tensions, impacting its operations and market positioning.

ATA Creativity Global Announces $8.85 Million ADS Offering

On November 17, 2025, ATA Creativity Global announced a subscription agreement with three purchasers for a registered direct offering of 11,067,547 American Depositary Shares (ADSs), priced at $0.8 per ADS. The offering is expected to generate approximately $8.85 million in gross proceeds before expenses. The closing of this offering is contingent upon customary conditions, and a lock-up agreement has been established with the purchasers and the company’s CEO, restricting the transfer of shares until April 30, 2026. The proceeds will be used for general working capital, potentially impacting the company’s financial flexibility and market positioning.

ATA Creativity Global Announces Q3 2025 Financial Results and Strategic Initiatives

ATA Creativity Global reported its Q3 2025 financial results, showing stable net revenues of RMB67.3 million and a gross profit decline to RMB26.4 million compared to the previous year. Despite a decrease in student enrollment, the company saw a 5.6% increase in total credit hours delivered. For the nine months ending September 30, 2025, net revenues increased by 7.1% to RMB179.0 million, supported by growth in research-based learning and overseas study counseling. The company introduced new projects, including summer labs and online Master classes, and received over 4,000 admission offers for students from prestigious universities. ACG reaffirmed its FY 2025 revenue guidance, expecting a 3% to 5% increase. Additionally, ACG is in early discussions with Baby Capital regarding a potential investment, with no substantial progress reported.

ATA Creativity Global Schedules Virtual Annual Meeting for December 2025

ATA Creativity Global announced that it will hold its annual general meeting of shareholders on December 3, 2025, in a virtual format. The meeting will address the re-election of directors and the re-appointment of the company’s independent auditor, reflecting ongoing governance and operational stability. Shareholders are encouraged to participate online, ensuring inclusive engagement regardless of geographic location.