ATA Creativity Global logo

ATA Creativity Global(AACG)

upturn advisory logo
ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$0.86
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close

Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for AACG

09/25/2026: AACG (1-star) is currently NOT-A-BUY. Pass it for now.

ATA Creativity Global is a specialized education provider focusing on arts and portfolio training for students pursuing international higher education. The company has successfully pivoted from its legacy testing business to build a niche, high-touch brand for creative arts instruction. Its primary growth opportunity lies in the recovery of international student mobility and the scaling of hybrid learning models. However, investors must consider risks including regulatory volatility in the Chinese education sector, intense competition, and earnings instability. The stock may suit growth-oriented investors with a high tolerance for risk, while market watchers should monitor regulatory shifts and the effectiveness of their recent digital initiatives.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company targets high-growth segments but faces significant execution and market risks.
Momentum investorWeak fitThe stock lacks consistent, high-volume upward momentum signals.
Value investorMixed fitThe valuation may appear attractive to some, but earnings consistency remains a challenge.
Dividend investorWeak fitThe company does not pay dividends, making it unsuitable for income-focused investors.
Low-risk investorWeak fitThe stock exhibits high volatility and operational risk common in micro-cap education stocks.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is susceptible to significant price swings due to low float and small-cap status.
Valuation riskMedium / highEarnings volatility makes it difficult to justify consistent valuation multiples.
Competition risk (Education sector)HighLarge, well-capitalized competitors dominate the broader private education space.
Business qualityMediumThe business model is niche and heavily dependent on specific consumer spending habits.
Dividend incomeLow / noneNo dividend payments provide no cushion for shareholders during market downturns.
Execution riskMedium / highSuccessful growth depends on navigating complex local education regulations.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Highly Choppy
PRICE STABILITY

Highly Choppy

The stock has experienced frequent, large price swings that make its near-term movement less predictable.

Analysis of Past Performance

Type Stock
Historic Profit -0.8%
Avg. Invested days 35
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
AACG receives a 2-star rating, supported by available scored pillars. The rating is constrained by weak unit economics, soft analyst coverage, and weak price momentum.

Company Fundamentals

★★★★★
AACG has moderate overall fundamentals (3 stars), with soft financial health, moderate growth momentum, and moderate ownership. In FY2025 versus FY2024, growth and ownership metrics are mixed: negative earnings growth (-33.1%), soft cash generation (FCF margin -6.4%), moderate revenue growth (+0.0%).

Financial Health Rating

★★★★★
AACG's financial health is supported by moderate efficiency, including operating-expense and cost-of-revenue discipline (opex 59.9% of revenue). Profitability is soft (2 stars), which helps explain the 2-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is AACG's strongest growth driver at +26.7% FY2025 versus FY2024 (solid, 4 stars). By comparison, while earnings growth (-33.1%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 3.9% and approximately 45.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 3.45% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

Renaissance Technologies Corp 0.09%
Citadel Advisors Llc 0.07%
Susquehanna International Group, LLP 0.03%
TWO SIGMA SECURITIES, LLC 0.02%
XTX Topco Ltd 0.02%

Unit Economics (Per $1K Revenue)

★★★★★
AACG generates approximately $486 of gross profit, $-113 of operating income, and $-64 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 6.93%

Quantitative Style Profile

★★★★★
AACG has a Value-Oriented profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Small / Mid Cap Risk

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 35.67M USD
Price to earnings Ratio -
1Y Target Price 11
Price to earnings Ratio -
1Y Target Price 11
Volume (30-day avg) 19.0K shares
Beta 1.14
52 Weeks Range 0.74 - 1.62
Updated Date 09/25/2026
52 Weeks Range 0.74 - 1.62
Updated Date 09/25/2026
Dividends yield (FY) -
Basic EPS (TTM) -0.23

How Company Makes Money

Business areaWhat it includesRetail investor read
Creative Arts EducationPortfolio preparation, specialized art training, and research services.Most revenue comes from students paying for specialized training to get into top art schools.
Geography (China)Physical training centers and regional operations.The company is highly concentrated in the Chinese market, making it sensitive to local economic and regulatory conditions.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Advertisement

Valuation

Trailing PE -
Forward PE 15.43
Enterprise Value 29.78M
Price to Sales(TTM) 0.13
Enterprise Value 29.78M
Price to Sales(TTM) 0.13
Enterprise Value to Revenue 0.74
Enterprise Value to EBITDA 146.89
Shares Outstanding 43.21M
Shares Floating 19.74M
Shares Outstanding 43.21M
Shares Floating 19.74M
Percent Insiders 3.45
Percent Institutions 3.88

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About ATA Creativity Global

Exchange NASDAQ
Headquarters -
IPO Launch date 2008-01-29
Co-Founder, Chairman & CEO Mr. Xiaofeng Ma
Sector Consumer Defensive
Industry Education & Training Services
Full time employees 489
Full time employees 489

ATA Creativity Global, together with its subsidiaries, provides educational services in China and internationally. The company operates through three segments: Overseas Art Study Services, Other Educational Services, and Other Services. It offers portfolio training services, including portfolio training courses and specializations; academic educational learning, workshop experience, themed educational travel, and other research-based learning services; art-related overseas study counselling services, such as background development, university and program selection, paper writing, interview simulation, and application preparation; and other educational services, as well as online courses. The company serves high school and undergraduate students. It markets its services through partnership with sales channels, internet and mobile advertisements, word of mouth referral, and marketing events and activities. The company was formerly known as ATA Inc. and changed its name to ATA Creativity Global in September 2019. ATA Creativity Global was founded in 1999 and is based in Hefei, China.