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Fundamentals snapshot

ATA Creativity Global

AACG · NCM · Consumer Defensive · Education & Training Services

Current price

$0.60

52-week range

$0.58 - $1.48

Market cap

$41.11M

One-glance verdict

Undervalued

$2.57 our estimate vs market $0.60

Balance sheet

Healthy

-48.43x Concerning

Net cash $5.90M. Interest coverage shows how many times profit covers the interest bill.

What this company does

ATA Creativity Global

ATA Creativity Global helps students in China and other countries prepare for art schools overseas. They offer courses and counseling for things like creating an art portfolio, and also provide general academic learning and travel experiences. Most of their money comes from these art-focused educational services, which is important because it means their success relies on attracting students who want to pursue art degrees abroad.

Price history

How the share price has moved

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Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Free cash flow by quarter (oldest to newest)
FY2024 Q4 $-3.20M FY2025 Q4 $-2.45M
Revenue $38.34M
Net income $-6.87M
Diluted EPS -0.11
Operating cash flow $-2.26M
Free cash flow $-2.45M
Revenue $36.72M
Net income $-4.95M
Diluted EPS -0.08
Operating cash flow $-458.28K
Free cash flow $-3.20M

Is it cheap or expensive?

Fair value $2.57 vs current price $0.60

Our most-likely fair value is $2.57 a share — about 326.9% above today's price of $0.60, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 3.0% · Discount 8.8% · Terminal 3.0%

$2.57

Bear

Growth 3.0% · Discount 8.8% · Terminal 3.0%

$2.57

Bull

Growth 10.0% · Discount 8.8% · Terminal 3.0%

$3.79

Is it drowning in debt?

Healthy

Net cash $5.9M - more cash than debt. Interest coverage -48.4x.

Net debt $-5.90M
Interest coverage -48.43x

ATA Creativity Global's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.

Healthy
Worse cushion Baseline Better cushion
AACG BASELINE ATA Creativity Global

Total debt $6.90M Interest coverage -48.43x This is the baseline the peer rows are being compared against.

Total debt $19.98M Interest coverage 521.69x This peer still has a real interest-payment cushion, while AACG does not.

Total debt $2.54M Interest coverage -40.30x Neither company has much profit cushion over interest right now.

Total debt $16.08M Interest coverage 1.15x This peer still has a real interest-payment cushion, while AACG does not.

Total debt $1.25M Interest coverage 2.34x This peer still has a real interest-payment cushion, while AACG does not.

What you should know

The case for and against AACG

2 Rewards 2 Risks

Rewards

  • Revenue grew 4.4% last year.
  • Free cash flow was positive in 3/10 years.

Risks

  • Return on equity was -86.1% last year — the company lost money on shareholders' equity.
  • Insider ownership is only 3.4% (peer median: 11.0%).

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)
—
Forward P/E
-0.61x
P/B
3.97x
P/S
0.15x
EV/EBITDA
1.59x
PEG ratio
0.62x

Profitability

How much profit each dollar creates

Gross margin
50.0%
Operating margin
12.2%
Net margin
-17.9%
ROE
-86.1%
ROA
-4.4%

Health

Liquidity and balance-sheet strength

Debt / equity
1.44x
Current ratio
0.32x
Quick ratio
0.29x
Total debt
$6.90M
Total cash
$12.80M

Growth

How the business has been compounding

Revenue TTM
$136.26M
Revenue 5Y CAGR
4.8%
EPS TTM
-0.21
EPS 5Y CAGR
—

Cash flow

How much cash the business throws off

Operating CF TTM
$-3.61M
Free CF TTM
$-2.45M
FCF margin
-1.8%

Dividend

Shareholder payout

Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2018-08-27