ATA Creativity GlobalFind Ratings Reports
ATA CREATIVITY GLOBAL -ADS's gross profit margin for the second quarter of its fiscal year 2021 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. ATA CREATIVITY GLOBAL -ADS has very weak liquidity. Currently, the Quick Ratio is 0.33 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.24% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||5.78||3.75|
|Net Income ($mil)||2.15||-4.55|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||14.15||16.95|
|Total Assets ($mil)||84.73||85.34|
|Total Debt ($mil)||6.17||2.86|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||43.33||25.14|
|Return on Assets||-8.67||-24.82|
|Return on Equity||-21.97||-61.24|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||31.35||32.98|
|Div / share||0.0||0.0|
|Book value / share||1.07||1.05|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||47681.0||915801.0|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 1.64 indicates a significant discount versus the S&P 500 average of 4.73 and a discount versus the subsector average of 2.49. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, ATA CREATIVITY GLOBAL -ADS proves to trade at a discount to investment alternatives.
|AACG NM||Peers 21.38||AACG NA||Peers 663.25|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
AACG's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|AACG NM||Peers 16.01||AACG NA||Peers 1.02|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
AACG's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|AACG 1.64||Peers 2.49||AACG 65.34||Peers -154.97|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AACG is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
AACG is expected to have an earnings growth rate that significantly exceeds its peers.
|AACG 1.97||Peers 5.37||AACG 26.61||Peers 22.76|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AACG is trading at a significant discount to its subsector on this measurement.
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share.
AACG has a sales growth rate that exceeds its peers.