ATA Creativity GlobalAACG -4.12%64 Gross Margin % is 56.37% as of Dec. 2025, which is 13% above its 10-year median of 49.84. GuruFocus rates AACG with a GF Score™ of 64/100 and a GF Value™ of $1.17 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 245 Education companies, ATA Creativity Global ranks better than 51.84% on this metric.
The historical rank and industry rank for ATA Creativity Global's Gross Margin % or its related term are showing as below:
AACG'
s Gross Margin % Range Over the Past 10 Years
Min: -216.92 Med: 49.84 Max: 52.7
Current: 48.64
During the past 13 years, the highestGross Margin % of ATA Creativity Global was 52.70%. The lowest was -216.92%. And the median was 49.84%.
AACG's Gross Margin % is ranked better than 51.84% of 245
companies
in the Education industry
Industry Median: 47.86
vs AACG: 48.64
ATA Creativity Global had a gross margin of 56.37% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ATA Creativity Global was 3.40% per year.
ATA Creativity Global (NAS:AACG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
ATA Creativity Global had a gross margin of 56.37% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
ATA Creativity Global Gross Margin % Related Terms
ATA Creativity Global Gross Margin % Historical Data
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The historical data trend for ATA Creativity Global's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AACG vs GNS, SKIL, RYET: Gross Margin % Comparison
For the Education & Training Services subindustry, ATA Creativity Global's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ATA Creativity Global Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, ATA Creativity Global's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ATA Creativity Global's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
ATA Creativity Global (AACG) has a Gross Margin % of 56.37% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ATA Creativity Global and its competitors. This is 13% above median its historical median of 49.84. According to the industry distribution chart, ATA Creativity Global ranks #118 out of 245 companies in the Education industry, placing it in the top 48.2%.
Is ATA Creativity Global's Gross Margin % too high?
ATA Creativity Global's current Gross Margin % of 56.37% is 13% above median its 10-year median of 49.84. The Education industry median Gross Margin % is 47.86. ATA Creativity Global's value of 56.37% is 17.8% above this industry median. Based on the distribution chart, ATA Creativity Global ranks #118 out of 245 companies in the Education industry, which is above the industry midpoint. Overall, ATA Creativity Global has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ATA Creativity Global's Gross Margin % compare to GNS and SKIL?
According to the Education industry distribution chart, ATA Creativity Global ranks #118 out of 245 companies for Gross Margin %. This puts ATA Creativity Global in the upper half of its industry. The industry median Gross Margin % is 47.86. ATA Creativity Global's value of 56.37% is 17.8% above this benchmark. While the company's 10-year median is 49.84 vs. the industry median of 47.86, ATA Creativity Global has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Education company?
The median Gross Margin % among Education companies is 47.86, based on 245 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ATA Creativity Global's current Gross Margin % of 56.37% is 17.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on ATA Creativity Global and its competitors. For the Education industry, the median Gross Margin % is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ATA Creativity Global's current Gross Margin % is 56.37%, which is 13% above median its own 10-year median of 49.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ATA Creativity Global stock overvalued right now?
Based on GuruFocus' analysis, ATA Creativity Global (AACG) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.17, compared to a current price of $0.93 — trading 20.5% below its estimated fair value. The current Gross Margin % is 56.37%, which is 13% above median its 10-year median of 49.84 and 17.8% above the Education industry median of 47.86. ATA Creativity Global's overall GF Score™ is 64/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For ATA Creativity Global (AACG), the current Gross Margin % is 56.37% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ATA Creativity Global (AACG) Overvalued in 2026?
Based on GuruFocus' analysis, ATA Creativity Global stock appears to be undervalued.
The current stock price of $0.93 is trading 20.5% below its estimated GF Value™ of $1.17.
GuruFocus considers ATA Creativity Global to be Modestly Undervalued.
Key valuation signals for AACG:
Gross Margin %: 56.37% (13% above median its 10-year median of 49.84)
GF Value™: $1.17 vs. price of $0.93 (20.5% below fair value)
Industry Position: 17.8% above the Education median (#118 of 245)
No single metric tells the full story. See the AACG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ATA Creativity Global is an international educational services company focused on providing quality learning experiences that cultivate and enhance students' creativity. The operating segments of the company are (i) Overseas art study services (ii) Other educational services and (iii) Other services. Majority of its revenue comes from Overseas art study services.
64GF Score
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