ATA Creativity Global (AACG) AI Stock Analysis

NASDAQ: AACGAI research summary: business, growth, valuation, analysts, bull and bear case.

AACG AI stock analysis summary

AI Research

ATA Creativity Global (AACG) provides educational services and portfolio training across China and internationally. Revenue reached $268.1M in FY2025 with a 5-year CAGR of 10.6%, though net income remained negative at -$48.0M. The company maintains a market cap of $65.1M and net cash of $39.3M as of March 31, 2026.

Market cap
$65.1M
Revenue (TTM)
$268.1M
P/E
—
fwd 15.4x
1Y return
-21.5%
S&P 500 16.8%
Avg. target
$11.00
1057.9% vs last close

Bull case

  • ATA Creativity Global delivered a 5-year revenue CAGR of 10.6% from FY2020 through FY2025, reaching $268.1M in annual revenue.
  • The balance sheet reflects net cash of $39.3M as of March 31, 2026, supported by $85.3M in cash and short-term investments.
  • The company demonstrated consistent earnings execution by registering 4 EPS beats over the last 4 quarters.

Bear case

  • ATA Creativity Global remained unprofitable in FY2025, reporting net income of -$48.0M and a negative net margin of -17.9%.
  • Liquidity shows short-term pressure with a current ratio of 0.32 as of March 31, 2026.
  • Operating cash burn continued in FY2025 with operating cash flow of -$15.8M and free cash flow of -$17.1M.

What ATA Creativity Global does

ATA Creativity Global, along with its subsidiaries, delivers comprehensive educational services to students in China and globally. Through a network of 21 training centers across 20 cities in China, the company provides portfolio training, research-based learning, overseas study counseling, and junior art education. It also collaborates with high schools to offer in-school art classes and foreign language training. In addition, ATA Creativity Global provides online courses to enhance accessibility and flexibility. Headquartered in Beijing, China, the company was originally established in 1999 as ATA Inc. and rebranded in September 2019.

Growth and profitability

ATA Creativity Global generated revenue of $202.2M in FY2021, growing 24.7%, before rising to $206.8M in FY2022 and $221.6M in FY2023. Revenue expanded 21.0% to $268.1M in FY2024 and was unchanged at $268.1M in FY2025, producing a 5-year CAGR of 10.6% from FY2020. Gross margin stood at 48.6% in FY2025, down from 52.7% in FY2024. Operating margin improved from -32.8% in FY2021 to -11.3% in FY2025, while net income registered -$48.0M with diluted EPS of -$0.50. For the trailing twelve months ended March 31, 2026, quarterly revenue fell 11.7% year-over-year, while quarterly earnings grew 58.5%.

AACG income statement →

Balance sheet and cash flow

As of March 31, 2026, ATA Creativity Global held $85.3M in cash and short-term investments against total debt of $46.0M, resulting in net cash of $39.3M. Total assets stood at $408.6M, while shareholders' equity was $32.1M. The company reported a debt-to-equity ratio of 1.43 and a current ratio of 0.32. For FY2025, operating cash flow was -$15.8M and free cash flow was -$17.1M, with capital expenditures of $1.3M. Its 5-year share count change was -50.4%.

AACG balance sheet →

Valuation and performance

At a last close of $0.95 on October 16, 2026, ATA Creativity Global has a market cap of $65.1M and an enterprise value of $1.5M. The stock trades at a forward P/E of 15.4x, compared to the median of 14.3x for its US-listed Consumer Defensive peers. Its price-to-sales ratio is 0.2x against the peer median of 0.7x, while its EV-to-EBITDA stands at 146.9x versus the peer median of 11.7x. Over the past year, the stock fell 21.5%, while the S&P 500 gained 16.8%. Over five years, the stock fell 61.4% against an 83.0% gain for the S&P 500.

AACG key metrics →

What analysts expect

Wall Street coverage on ATA Creativity Global indicates a mean price target of $11.00, which stands 1057.9% above the last close of $0.95 on October 16, 2026. Over the trailing period, the company established a positive earnings track record by achieving 4 EPS beats in the last 4 quarters. Insider ownership is 3.4%, institutional ownership is 3.9%, and short interest sits at 0.0% of float. The company's next earnings report is scheduled for November 11, 2026.

Key risks and what to watch

  • Quarterly revenue declined 11.7% year-over-year in the quarter ended March 31, 2026, signaling potential top-line headwinds.
  • The current ratio of 0.32 and debt-to-equity ratio of 1.43 indicate balance sheet liquidity constraints.
  • The stock exhibits a 1-year decline of 21.5% and a 5-year decline of 61.4%, significantly lagging the S&P 500 index.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this AACG AI stock analysis

This page is an AI-written research summary of ATA Creativity Global (AACG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AACG income statement, AACG balance sheet, AACG key metrics, AACG chart. See the AACG stock overview for the latest quote and news.

AACG AI stock analysis FAQ

What does ATA Creativity Global do?

ATA Creativity Global provides educational services, including portfolio training, research-based learning, overseas study counseling, and art classes. It operates 21 training centers across 20 cities in China alongside online learning programs.

What is ATA Creativity Global's financial position?

As of March 31, 2026, the company held $85.3M in cash and short-term investments with total debt of $46.0M, resulting in net cash of $39.3M. However, its current ratio was 0.32 and debt-to-equity was 1.43.

Does ATA Creativity Global pay a dividend?

ATA Creativity Global does not report dividend payments. FY2025 capital expenditures were $1.3M, and free cash flow stood at -$17.1M.

When does ATA Creativity Global report earnings?

The company's next earnings date is November 11, 2026. It achieved 4 EPS beats over the last 4 quarters.

More Consumer Defensive AI stock analysis