ATA Creativity Global (AACG)
NASDAQ:AACG
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ATA Creativity Global
(NASDAQ:AACG)
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Rating:42Neutral
Price Target:
$0.88
▲(6.39% Upside)
Action:ReiteratedDate:04/03/26
AACG scores low primarily due to ongoing losses, rising balance-sheet leverage from a weaker equity base, and renewed cash burn. Technicals add additional pressure with the stock trading below major moving averages and negative MACD, while valuation is constrained by negative earnings and no dividend yield support in the provided data.
Positive Factors
Global partnerships and product expansion
Strategic international partnerships and expanded value-added programs create a more diversified revenue base and help defend market share. Over 2–6 months this supports enrollment channels, cross-border offerings and brand differentiation that can sustain demand beyond transient cycles.
Negative Factors
Rising leverage and shrinking equity
A sharp increase in leverage and a much smaller equity cushion materially raise solvency risk and limit financial flexibility. If operating losses or cash burn persist, higher debt amplifies downside, increasing refinancing needs and constraining investment or strategic options over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Global partnerships and product expansion
Strategic international partnerships and expanded value-added programs create a more diversified revenue base and help defend market share. Over 2–6 months this supports enrollment channels, cross-border offerings and brand differentiation that can sustain demand beyond transient cycles.
Read all positive factors
ATA Creativity Global (AACG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.07M
Dividend YieldN/A
Average Volume (3M)85.50K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth11.62%
EPS Growth80.22%
CountryUS
Employees599
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.12
Shares Outstanding43,030,000
10 Day Avg. Volume71,387
30 Day Avg. Volume85,501
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)2.73
Price to Sales (P/S)0.34
P/FCF Ratio-5.12
Enterprise Value/Market Cap2.22
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit0.57
Enterprise Value/Ebitda-4.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ATA Creativity Global Business Overview & Revenue Model
Company Description
ATA Creativity Global (AACG) is a leading education and creative arts company focused on providing innovative learning experiences through technology-enhanced education. The company operates in various sectors, including online and in-person educa...
How the Company Makes Money
null...
ATA Creativity Global Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
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.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.
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.
Read all updates
Q2-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
26
Negative
Balance Sheet
34
Negative
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 260.81M | 268.06M | 221.62M | 206.82M | 202.21M |
| Gross Profit | 126.76M | 141.26M | 114.66M | 102.51M | 104.80M |
| EBITDA | -29.55M | -18.82M | -19.51M | -34.00M | -43.36M |
| Net Income | -46.74M | -36.10M | -33.66M | -47.89M | -33.65M |
Balance Sheet | |||||
| Total Assets | 408.56M | 456.93M | 448.94M | 474.46M | 507.18M |
| Cash, Cash Equivalents and Short-Term Investments | 85.29M | 36.52M | 60.17M | 54.98M | 71.34M |
| Total Debt | 45.98M | 35.21M | 22.61M | 36.45M | 40.72M |
| Total Liabilities | 376.55M | 377.28M | 335.97M | 330.95M | 316.28M |
| Stockholders Equity | 32.07M | 79.71M | 113.04M | 143.10M | 187.77M |
Cash Flow | |||||
| Free Cash Flow | -17.12M | -23.37M | 6.51M | -16.23M | -36.29M |
| Operating Cash Flow | -15.84M | -3.35M | 8.75M | -14.61M | -31.83M |
| Investing Cash Flow | 48.71M | -20.26M | -3.97M | -2.49M | -10.03M |
| Financing Cash Flow | 16.34M | -93.70K | 403.44K | 188.21K | 827.52K |
ATA Creativity Global Technical Analysis
Positive
0.83
Price Trends
0.97
Positive
0.99
Negative
1.23
Negative
Market Momentum
>-0.01
Negative
51.04
Neutral
82.58
Negative
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 0.83 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 0.97, and below the 200-day MA of 1.23, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 is Negative, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
49 Neutral | $23.08M | ― | -0.28% | ― | 32.23% | 321.98% | |
49 Neutral | $6.63M | 5.80 | ― | ― | ― | ― | |
47 Neutral | $6.11M | -2.84 | -48.49% | ― | 44.99% | 61.58% | |
43 Neutral | $15.91M | -1.67 | -45.82% | ― | -48.17% | 35.62% | |
42 Neutral | $33.07M | -1.87 | -13.01% | ― | 11.62% | 80.22% |
* Consumer Defensive Sector Average
AACG
ATA Creativity Global
1.04
0.08
8.45%
FEDU
Four Seasons Education (Cayman)
10.21
3.96
63.36%
AMBO
Ambow Education Holding
2.32
-0.27
-10.42%
EDTK
Skillful Craftsman Education Technology
1.00
0.00
0.00%
YQ
17 Education & Technology Group
1.79
0.34
23.45%
EEIQ
Elite Education Group International
4.13
-7.71
-65.11%
ATA Creativity Global Corporate Events
ATA Creativity Global Posts Wider 2025 Loss and Raises $8.85 Million in ADS Offering
Mar 26, 2026
ATA Creativity Global reported preliminary unaudited results for the fourth quarter and full year 2025 on March 25, 2026, showing flat annual revenue at RMB268.1 million but weaker profitability as gross margin declined and net loss widened to RMB...
ATA Creativity Global Overhauls Board Committees with New Independent Directors
Feb 4, 2026
On February 2, 2026, ATA Creativity Global announced that independent directors Alec Tsui and Hope Ni resigned from the board and from their respective roles on the audit, compensation and nominations committees, citing personal reasons and indica...
ATA Creativity Global Closes US$8.85 Million ADS Offering and Ends Baby Capital Share Subscription Talks
Jan 28, 2026
On January 28, 2026, ATA Creativity Global reported that it had closed a previously announced registered direct offering, selling 11,067,547 American Depositary Shares at US$0.80 per ADS, raising gross proceeds of about US$8.85 million before expe...
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.