ATA Creativity Global (AACG) AI Stock Analysis

• Market Cap: $45.31M
• Dividend Yield: N/A
• Average Volume (3M): 86.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 15.48%
• EPS Growth: 24.98%
• Country: US
• Employees: 599
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.05
• Shares Outstanding: 31,911,386
• 10 Day Avg. Volume: 109,119
• 30 Day Avg. Volume: 86,603
• 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: 0.58
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.18
• Enterprise Value/Ebitda: -1.27
• 1Y Price Target: $1.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $1.50 ▲(8.70% Upside)

The overall stock score is primarily impacted by the company's financial performance challenges, including ongoing losses and cash flow issues. Technical analysis indicates a bearish trend, further weighing on the score. While the earnings call provided some positive insights, such as revenue growth and reduced losses, these factors are not sufficient to offset the broader financial and technical concerns.

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 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 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	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	-20.55M	-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

• Technical Analysis Sentiment: Negative
• Last Price: 1.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.38 is below the 20-day moving average (MA) of 2.08, below the 50-day MA of 1.84, and above the 200-day MA of 1.13, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.71 is Neutral, neither overbought nor oversold. The STOCH value of 6.64 is Positive, 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
FEDU	51 Neutral	$30.94M	251.58	0.18%	―	98.22%	-82.71%
JZ	44 Neutral	$5.05M	-0.83	-142.10%	―	-44.85%	92.11%
AACG	43 Neutral	$45.31M	―	-37.39%	―	15.48%	24.98%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

ATA Creativity Global Corporate Events

ATA Creativity Global Reports Strong Q2 2025 Financial Performance

ATA Creativity Global reported an 8.0% increase in net revenues and a 10.2% rise in gross profit for Q2 2025 compared to the same period in 2024, driven by higher revenues from overseas study counseling and educational services. Despite a slight decline in student enrollment, the company saw growth in project-based program credit hours and continued to expand its value-added offerings, including new themed travel programs and partnerships with prestigious institutions, positioning itself well in a competitive market.

ATA Creativity Global Announces Strategic Partnership with Baby BTC

On August 1, 2025, ATA Creativity Global announced a non-binding term sheet with Baby BTC Strategic Capital Limited, which includes issuing up to 68,728,522 common shares to Baby Capital for $30 million and a warrant for additional shares. This agreement, if finalized, would give Baby Capital control of the company and the right to appoint three new directors. The proceeds are intended for purchasing BABY Token and Bitcoin, and collaborating with Babylon Foundation on Bitcoin staking, signaling a strategic move into the web 3.0 and Bitcoin ecosystem.