ATA Creativity Global (NasdaqGM:AACG) - Share price, News & Analysis

AACG fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

AACG Stock Overview

ATA Creativity Global, together with its subsidiaries, provides educational services to individual students through its training center network in China and internationally.

Risk Analysis

Earnings have declined by 8% per year over past 5 years

Does not have a meaningful market cap ($34M)

ATA Creativity Global Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ATA Creativity Global
Historical stock prices
Current Share Price	US$1.08
52 Week High	US$4.75
52 Week Low	US$0.88
Beta	0.94
1 Month Change	11.34%
3 Month Change	-25.52%
1 Year Change	-64.59%
3 Year Change	-60.00%
5 Year Change	-76.21%
Change since IPO	-87.66%

Shareholder Returns

	AACG	US Consumer Services	US Market
7D	6.2%	4.1%	6.6%
1Y	-64.6%	-49.2%	-18.5%

Return vs Industry: AACG underperformed the US Consumer Services industry which returned -51.4% over the past year.

Return vs Market: AACG underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is AACG's price volatile compared to industry and market?
AACG volatility
AACG Average Weekly Movement	8.7%
Consumer Services Industry Average Movement	9.5%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: AACG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: AACG's weekly volatility has decreased from 21% to 9% over the past year.

About the Company

Founded	Employees	CEO	Website
1999	584	Kevin Ma	https://www.atai.net.cn

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.

ATA Creativity Global Fundamentals Summary

How do ATA Creativity Global's earnings and revenue compare to its market cap?
AACG fundamental statistics
Market Cap	CN¥227.56m
Earnings (TTM)	-CN¥32.74m
Revenue (TTM)	CN¥206.76m

1.1x

P/S Ratio

-7.0x

P/E Ratio

Is AACG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AACG income statement (TTM)
Revenue	CN¥206.76m
Cost of Revenue	CN¥97.57m
Gross Profit	CN¥109.19m
Other Expenses	CN¥141.94m
Earnings	-CN¥32.74m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.04
Gross Margin	52.81%
Net Profit Margin	-15.84%
Debt/Equity Ratio	0%

How did AACG perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is AACG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AACG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AACG. This is calculated by dividing AACG's market cap by their current preferred multiple.
What is AACG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥227.56m

AACG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	-5.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does AACG's PS Ratio compare to its peers?

AACG PS Ratio vs Peers

The above table shows the PS ratio for AACG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.7x

Forward PS

Price-To-Sales vs Peers: AACG is expensive based on its Price-To-Sales Ratio (1.1x) compared to the peer average (0.7x).

Price to Earnings Ratio vs Industry

How does AACG's PE Ratio compare vs other companies in the U.S. Consumer Services Industry?

Price-To-Sales vs Industry: AACG is good value based on its Price-To-Sales Ratio (1.1x) compared to the US Consumer Services industry average (1.5x)

Price to Sales Ratio vs Fair Ratio

What is AACG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AACG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate AACG's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of AACG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate AACG's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate AACG's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AACG's PEG Ratio to determine if it is good value.

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Future Growth

How is ATA Creativity Global forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

43.9%

Forecasted Consumer Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ATA Creativity Global has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine ATA Creativity Global's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has ATA Creativity Global performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-8.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AACG is currently unprofitable.

Growing Profit Margin: AACG is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: AACG is unprofitable, and losses have increased over the past 5 years at a rate of 8% per year.

Accelerating Growth: Unable to compare AACG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AACG is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (-11.9%).

Return on Equity

High ROE: AACG has a negative Return on Equity (-18.72%), as it is currently unprofitable.

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Financial Health

How is ATA Creativity Global's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AACG's short term assets (CN¥69.4M) do not cover its short term liabilities (CN¥274.3M).

Long Term Liabilities: AACG's short term assets (CN¥69.4M) exceed its long term liabilities (CN¥44.9M).

Debt to Equity History and Analysis

Debt Level: AACG is debt free.

Reducing Debt: AACG has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AACG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AACG has sufficient cash runway for 1.7 years if free cash flow continues to reduce at historical rates of 23.6% each year.

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Dividend

What is ATA Creativity Global current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AACG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AACG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AACG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AACG's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: AACG is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AACG has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure

CEO

Kevin Ma (57 yo)

7.67yrs

Tenure

Mr. Xiaofeng Ma, also known as Kevin, is an Advisor at Elevation China Capital. Mr. Ma co-founded ATA Creativity Global (formerly known as ATA Inc.) and serves as its Chairman and has been its Chief Execut...

Leadership Team

Experienced Management: AACG's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: AACG's board of directors are seasoned and experienced ( 10.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31