One-glance verdict
$2.57 our estimate vs market $0.60
77% below our estimate, below the bear case
Fundamentals snapshot
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
77% below our estimate, below the bear case
Balance sheet
Net cash $5.90M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
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.
1. "How the company got here" ATA Creativity Global was founded in 1999 and was formerly known as ATA Inc. The company, which provides educational services, rebranded to ATA Creativity Global in September 2019. It operates internationally, with a primary focus on China. The company's core business revolves around offering educational experiences designed to foster and enhance students' creativity. 2. "What it actually does" ATA Creativity Global offers a variety of educational services aimed at developing students' creativity. These services include portfolio training, which helps students prepare for art and design programs, and research-based learning experiences. The company also provides overseas study counseling, assisting students with applications and preparations for studying abroad. ATA Creativity Global serves high school and undergraduate students, marketing its services through various channels like partnerships, online advertising, and word-of-mouth referrals. 3. "Overseas Art Study Services" This segment focuses on helping students who wish to study art in countries outside of China. Services include detailed portfolio training courses and specialized programs designed to showcase a student's artistic abilities. The company also offers art-related overseas study counseling, which involves guiding students through the entire application process, from developing their academic profile and selecting appropriate universities and programs to refining application essays and preparing for interviews. This segment is a significant contributor to the company's revenue, though its proportion has varied. 4. "Other Educational Services" This is the largest segment for ATA Creativity Global, making up the majority of its revenue. It encompasses a broad range of academic and learning experiences beyond overseas art study. This includes academic educational learning, workshops, and themed educational travel, as well as other research-based learning services. The company also offers online courses within this segment. 5. "Other Services" This segment is a smaller part of ATA Creativity Global's business operations. While specific details are less frequently highlighted, it generally includes various other educational services that do not fit into the primary categories. In recent years, the company has consolidated or stopped reporting this as a separate segment, with its contribution to overall revenue being minimal. 6. "What management is betting on now" ATA Creativity Global is actively exploring opportunities to expand its service offerings through acquisitions in the international education sector. Management aims to broaden the company's service spectrum and enhance its market position. The company is also focused on developing new international education-related products and services to meet evolving student needs and market demands. This strategic direction indicates a focus on growth and diversification within the international education landscape.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
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).
Is it drowning in debt?
Net cash $5.9M - more cash than debt. Interest coverage -48.4x.
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.
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 numbers
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Valuation
Profitability
Health
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Cash flow
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Metric explainer
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What you should know