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ATA CREATIVITY GLOBAL - ADR (AACG) Stock Fundamental Analysis

NASDAQ:AACG - Nasdaq - US00211V1061 - ADR - Currency: USD

0.94  +0.08 (+9.68%)

After market: 0.9315 -0.01 (-0.9%)

Fundamental Rating

2

AACG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. While AACG seems to be doing ok healthwise, there are quite some concerns on its profitability. AACG does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year AACG was profitable.
AACG had a positive operating cash flow in the past year.
AACG had negative earnings in each of the past 5 years.
In the past 5 years AACG reported 4 times negative operating cash flow.
AACG Yearly Net Income VS EBIT VS OCF VS FCFAACG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M 800M

1.2 Ratios

The Return On Assets of AACG (-7.51%) is comparable to the rest of the industry.
AACG has a worse Return On Equity (-29.81%) than 60.94% of its industry peers.
Industry RankSector Rank
ROA -7.51%
ROE -29.81%
ROIC N/A
ROA(3y)-8.22%
ROA(5y)-12.15%
ROE(3y)-27.46%
ROE(5y)-34.94%
ROIC(3y)N/A
ROIC(5y)N/A
AACG Yearly ROA, ROE, ROICAACG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 200 300

1.3 Margins

AACG's Gross Margin of 51.77% is fine compared to the rest of the industry. AACG outperforms 60.94% of its industry peers.
In the last couple of years the Gross Margin of AACG has grown nicely.
The Profit Margin and Operating Margin are not available for AACG so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 51.77%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.68%
GM growth 5YN/A
AACG Yearly Profit, Operating, Gross MarginsAACG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20K 40K 60K

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4

2. Health

2.1 Basic Checks

AACG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, AACG has about the same amount of shares outstanding.
AACG has more shares outstanding than it did 5 years ago.
There is no outstanding debt for AACG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
AACG Yearly Shares OutstandingAACG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
AACG Yearly Total Debt VS Total AssetsAACG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

Based on the Altman-Z score of -1.34, we must say that AACG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AACG (-1.34) is worse than 70.31% of its industry peers.
There is no outstanding debt for AACG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z -1.34
ROIC/WACCN/A
WACC9.03%
AACG Yearly LT Debt VS Equity VS FCFAACG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

2.3 Liquidity

AACG has a Current Ratio of 0.22. This is a bad value and indicates that AACG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.22, AACG is doing worse than 96.88% of the companies in the same industry.
AACG has a Quick Ratio of 0.22. This is a bad value and indicates that AACG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.22, AACG is doing worse than 96.88% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.22
Quick Ratio 0.22
AACG Yearly Current Assets VS Current LiabilitesAACG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

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1

3. Growth

3.1 Past

EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-194.85%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%15.53%

3.2 Future

Based on estimates for the next years, AACG will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.19% on average per year.
Based on estimates for the next years, AACG will show a quite strong growth in Revenue. The Revenue will grow by 9.76% on average per year.
EPS Next Y-72.37%
EPS Next 2Y-17.71%
EPS Next 3Y-12.19%
EPS Next 5YN/A
Revenue Next Year2.83%
Revenue Next 2Y7.58%
Revenue Next 3Y9.76%
Revenue Next 5YN/A

3.3 Evolution

AACG Yearly Revenue VS EstimatesAACG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
AACG Yearly EPS VS EstimatesAACG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -0.2 -0.4 -0.6 -0.8 -1

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 31.33 indicates a quite expensive valuation of AACG.
AACG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. AACG is around the same levels.
AACG is valuated quite expensively with a Price/Forward Earnings ratio of 41.99.
AACG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AACG is valued rather expensively when compared to this.
Industry RankSector Rank
PE 31.33
Fwd PE 41.99
AACG Price Earnings VS Forward Price EarningsAACG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of AACG indicates a somewhat cheap valuation: AACG is cheaper than 60.94% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 32.98
EV/EBITDA N/A
AACG Per share dataAACG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5

4.3 Compensation for Growth

AACG's earnings are expected to decrease with -12.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.71%
EPS Next 3Y-12.19%

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0

5. Dividend

5.1 Amount

AACG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ATA CREATIVITY GLOBAL - ADR

NASDAQ:AACG (2/21/2025, 8:00:00 PM)

After market: 0.9315 -0.01 (-0.9%)

0.94

+0.08 (+9.68%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)03-24 2025-03-24/amc
Inst Owners16.11%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.59M
Analysts82.86
Price TargetN/A
Short Float %0.48%
Short Ratio7.54
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 31.33
Fwd PE 41.99
P/S 0.97
P/FCF 32.98
P/OCF 24.54
P/B 1.9
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.03
EY3.19%
EPS(NY)0.02
Fwd EY2.38%
FCF(TTM)0.03
FCFY3.03%
OCF(TTM)0.04
OCFY4.07%
SpS0.97
BVpS0.49
TBVpS-0.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.51%
ROE -29.81%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 51.77%
FCFM 2.94%
ROA(3y)-8.22%
ROA(5y)-12.15%
ROE(3y)-27.46%
ROE(5y)-34.94%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.68%
GM growth 5YN/A
F-Score7
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 10.19%
Cap/Sales 1.01%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.22
Quick Ratio 0.22
Altman-Z -1.34
F-Score7
WACC9.03%
ROIC/WACCN/A
Cap/Depr(3y)12.23%
Cap/Depr(5y)12.08%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-194.85%
EPS Next Y-72.37%
EPS Next 2Y-17.71%
EPS Next 3Y-12.19%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%15.53%
Revenue Next Year2.83%
Revenue Next 2Y7.58%
Revenue Next 3Y9.76%
Revenue Next 5YN/A
EBIT growth 1Y26.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-22.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y140.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y159.9%
OCF growth 3YN/A
OCF growth 5YN/A