ATA Creativity Global (NAS:AACG) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
ATA Creativity Global Operating Margin % Related Terms
ATA Creativity Global Operating Margin % Historical Data
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The historical data trend for ATA Creativity Global's Operating 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: Operating Margin % Comparison
For the Education & Training Services subindustry, ATA Creativity Global's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, ATA Creativity Global's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ATA Creativity Global's Operating Margin % falls into.
ATA Creativity Global Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
ATA Creativity Global's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
ATA Creativity Global (AACG) has a Operating Margin % of 12.23% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on ATA Creativity Global and its competitors. According to the industry distribution chart, ATA Creativity Global ranks #219 out of 258 companies in the Education industry, placing it in the top 84.9%.
Is ATA Creativity Global's Operating Margin % too high?
ATA Creativity Global's current Operating Margin % is 12.23%. The Education industry median Operating Margin % is 9.35. ATA Creativity Global's value of 12.23% is 30.9% above this industry median. Based on the distribution chart, ATA Creativity Global ranks #219 out of 258 companies in the Education industry, which is in the bottom quartile relative to peers. 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 Operating Margin % compare to GNS and SKIL?
According to the Education industry distribution chart, ATA Creativity Global ranks #219 out of 258 companies for Operating Margin %. This places ATA Creativity Global in the lower half of its industry. The industry median Operating Margin % is 9.35. ATA Creativity Global's value of 12.23% is 30.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Education company?
The median Operating Margin % among Education companies is 9.35, based on 258 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ATA Creativity Global's current Operating Margin % of 12.23% is 30.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on ATA Creativity Global and its competitors. For the Education industry, the median Operating Margin % is 9.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ATA Creativity Global's current Operating Margin % is 12.23%. 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 $1.01 — trading 13.7% below its estimated fair value. The current Operating Margin % is 12.23% and 30.9% above the Education industry median of 9.35. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For ATA Creativity Global (AACG), the current Operating Margin % is 12.23% 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 $1.01 is trading 13.7% below its estimated GF Value™ of $1.17.
GuruFocus considers ATA Creativity Global to be Modestly Undervalued.
Key valuation signals for AACG:
Operating Margin %: 12.23%
GF Value™: $1.17 vs. price of $1.01 (13.7% below fair value)
Industry Position: 30.9% above the Education median (#219 of 258)
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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