ATA Creativity Global American Depositary Shares (AACG)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach this as a Graham-style balance-sheet question first, and on that basis ATA Creativity Global fails. At the close on 2026-10-13, the shares were $0.75, giving a $49.1M market cap. FairStock calculations show a P/B of 5.00, ROE of -86.08%, ROCE of -4.36%, and debt-to-equity of 1.44. FairStock's P/E is -3.26, reflecting negative earnings, so there is no earnings-based value support. In the latest reported quarter, fiscal Q4 2025, revenue was $89.1M and net income was -$26.3M, a -29.51% net margin. The company's reported growth is deeply negative, with revenue growth of -11.68% and profit growth of -298.42%. Those are not the numbers of a business compounding intrinsic value. The company provides art-study and education services with only 489 employees, and I see no evidence of a durable competitive moat in the data. The balance sheet is strained: Altman Z-Score is -1.93, Piotroski is 5/9, and FairStock Score is 42/100. The Lynch category is none because only zero years of filed results are available and three are needed. A beta of 1.14 and a 52-week range of $0.66 to $1.50 show the market has marked it down, but a low price alone is not value. Graham wanted assets and earnings backing the price; Buffett wants durable returns on capital. Neither is present here. I would need evidence of stabilising revenue, positive cash generation, and a repaired balance sheet before calling this a bargain.

In plain English: ATA Creativity Global sells education and art-study services, mainly in China and internationally. The business looks weak right now: it lost money in its latest reported quarter and sales and profits have been falling. At $0.75 per share, the price does not look clearly cheap because the company is unprofitable and its shares cost many times what its books say the business is worth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer