AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - NYSE:ADC - US0084921008 - REIT
72.7 USD
+0.25 (+0.35%)
Overall ADC gets a fundamental rating of 4 out of 10. We evaluated ADC against 127 industry peers in the Diversified REITs industry. While ADC belongs to the best of the industry regarding profitability, there are concerns on its financial health. ADC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADC was profitable.
ADC had a positive operating cash flow in the past year.
ADC had positive earnings in each of the past 5 years.
Each year in the past 5 years ADC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADC (1.96%) is better than 64.57% of its industry peers.
ADC has a Return On Equity (3.15%) which is in line with its industry peers.
The Return On Invested Capital of ADC (2.80%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADC is in line with the industry average of 3.07%.
The 3 year average ROIC (2.69%) for ADC is below the current ROIC(2.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 3.15% | ||
| ROIC | 2.8% |
ROA(3y)2.13%
ROA(5y)2.2%
ROE(3y)3.18%
ROE(5y)3.33%
ROIC(3y)2.69%
ROIC(5y)2.7%
1.3 Margins
Looking at the Profit Margin, with a value of 26.97%, ADC belongs to the top of the industry, outperforming 80.31% of the companies in the same industry.
In the last couple of years the Profit Margin of ADC has declined.
ADC's Operating Margin of 47.89% is amongst the best of the industry. ADC outperforms 89.76% of its industry peers.
In the last couple of years the Operating Margin of ADC has declined.
ADC's Gross Margin of 88.01% is amongst the best of the industry. ADC outperforms 88.98% of its industry peers.
ADC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.89% | ||
| PM (TTM) | 26.97% | ||
| GM | 88.01% |
OM growth 3Y-2.54%
OM growth 5Y-2.49%
PM growth 3Y-5.95%
PM growth 5Y-7.12%
GM growth 3Y-0.09%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
ADC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ADC has more shares outstanding
ADC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ADC is higher compared to a year ago.
2.2 Solvency
ADC has an Altman-Z score of 1.50. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.50, ADC belongs to the top of the industry, outperforming 90.55% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that ADC is somewhat dependend on debt financing.
ADC's Debt to Equity ratio of 0.57 is amongst the best of the industry. ADC outperforms 87.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.37
WACC7.52%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ADC may have some problems paying its short term obligations.
ADC has a worse Current ratio (0.74) than 62.20% of its industry peers.
ADC has a Quick Ratio of 0.74. This is a bad value and indicates that ADC is not financially healthy enough and could expect problems in meeting its short term obligations.
ADC has a Quick ratio of 0.72. This is in the lower half of the industry: ADC underperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for ADC have decreased by -6.04% in the last year.
The Earnings Per Share has been decreasing by -1.17% on average over the past years.
The Revenue has grown by 14.81% in the past year. This is quite good.
The Revenue has been growing by 26.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-6.04%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%7.14%
Revenue 1Y (TTM)14.81%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
3.2 Future
ADC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
Based on estimates for the next years, ADC will show a quite strong growth in Revenue. The Revenue will grow by 15.94% on average per year.
EPS Next Y-1.46%
EPS Next 2Y4.26%
EPS Next 3Y4.03%
EPS Next 5Y5%
Revenue Next Year16.74%
Revenue Next 2Y13.69%
Revenue Next 3Y13.11%
Revenue Next 5Y15.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.51, the valuation of ADC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ADC.
When comparing the Price/Earnings ratio of ADC to the average of the S&P500 Index (26.13), we can say ADC is valued expensively.
The Price/Forward Earnings ratio is 36.75, which means the current valuation is very expensive for ADC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADC indicates a somewhat cheap valuation: ADC is cheaper than 67.72% of the companies listed in the same industry.
ADC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.51 | ||
| Fwd PE | 36.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADC is valued more expensive than 88.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.85 |
4.3 Compensation for Growth
The decent profitability rating of ADC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.26%
EPS Next 3Y4.03%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 4.31%, which is a nice return.
ADC's Dividend Yield is slightly below the industry average, which is at 6.30.
ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
On average, the dividend of ADC grows each year by 6.62%, which is quite nice.
ADC has paid a dividend for at least 10 years, which is a reliable track record.
ADC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.62%
Div Incr Years12
Div Non Decr Years13
5.3 Sustainability
ADC pays out 183.89% of its income as dividend. This is not a sustainable payout ratio.
ADC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP183.89%
EPS Next 2Y4.26%
EPS Next 3Y4.03%
NYSE:ADC (11/6/2025, 1:26:39 PM)
72.7
+0.25 (+0.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners116.06%
Inst Owner Change-0.65%
Ins Owners1.33%
Ins Owner Change1.6%
Market Cap8.05B
Revenue(TTM)617.10M
Net Income(TTM)177.93M
Analysts79.2
Price Target83.85 (15.34%)
Short Float %8.31%
Short Ratio8.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP183.89%
Div Incr Years12
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.74%
Min EPS beat(2)-5.91%
Max EPS beat(2)-1.58%
EPS beat(4)0
Avg EPS beat(4)-4.17%
Min EPS beat(4)-5.91%
Max EPS beat(4)-1.58%
EPS beat(8)2
Avg EPS beat(8)-2.24%
EPS beat(12)4
Avg EPS beat(12)-1.82%
EPS beat(16)6
Avg EPS beat(16)-0.75%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)1.63%
Max Revenue beat(2)2.2%
Revenue beat(4)4
Avg Revenue beat(4)1.73%
Min Revenue beat(4)1.32%
Max Revenue beat(4)2.2%
Revenue beat(8)8
Avg Revenue beat(8)1.79%
Revenue beat(12)11
Avg Revenue beat(12)1.53%
Revenue beat(16)13
Avg Revenue beat(16)1.17%
PT rev (1m)0.14%
PT rev (3m)0.48%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-1.89%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.51 | ||
| Fwd PE | 36.75 | ||
| P/S | 12.2 | ||
| P/FCF | N/A | ||
| P/OCF | 16.83 | ||
| P/B | 1.42 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 20.85 |
EPS(TTM)1.71
EY2.35%
EPS(NY)1.98
Fwd EY2.72%
FCF(TTM)-8.01
FCFYN/A
OCF(TTM)4.32
OCFY5.94%
SpS5.96
BVpS51.09
TBVpS42.75
PEG (NY)N/A
PEG (5Y)N/A
Graham Number44.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 3.15% | ||
| ROCE | 3.54% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 3.14% | ||
| OM | 47.89% | ||
| PM (TTM) | 26.97% | ||
| GM | 88.01% | ||
| FCFM | N/A |
ROA(3y)2.13%
ROA(5y)2.2%
ROE(3y)3.18%
ROE(5y)3.33%
ROIC(3y)2.69%
ROIC(5y)2.7%
ROICexc(3y)2.69%
ROICexc(5y)2.7%
ROICexgc(3y)3.04%
ROICexgc(5y)3.08%
ROCE(3y)3.4%
ROCE(5y)3.41%
ROICexgc growth 3Y-0.04%
ROICexgc growth 5Y-2.84%
ROICexc growth 3Y1%
ROICexc growth 5Y-2.17%
OM growth 3Y-2.54%
OM growth 5Y-2.49%
PM growth 3Y-5.95%
PM growth 5Y-7.12%
GM growth 3Y-0.09%
GM growth 5Y0.01%
F-Score3
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.98 | ||
| Cap/Depr | 612.66% | ||
| Cap/Sales | 206.86% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | 88.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.5 |
F-Score3
WACC7.52%
ROIC/WACC0.37
Cap/Depr(3y)815.29%
Cap/Depr(5y)1193.64%
Cap/Sales(3y)261.47%
Cap/Sales(5y)350.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.04%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%7.14%
EPS Next Y-1.46%
EPS Next 2Y4.26%
EPS Next 3Y4.03%
EPS Next 5Y5%
Revenue 1Y (TTM)14.81%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
Revenue Next Year16.74%
Revenue Next 2Y13.69%
Revenue Next 3Y13.11%
Revenue Next 5Y15.94%
EBIT growth 1Y11.11%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year99.63%
EBIT Next 3Y38.43%
EBIT Next 5Y28.18%
FCF growth 1Y18.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.84%
OCF growth 3Y20.6%
OCF growth 5Y27.8%
AGREE REALTY CORP / ADC FAQ
Can you provide the ChartMill fundamental rating for AGREE REALTY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to ADC.
What is the valuation status of AGREE REALTY CORP (ADC) stock?
ChartMill assigns a valuation rating of 1 / 10 to AGREE REALTY CORP (ADC). This can be considered as Overvalued.
What is the profitability of ADC stock?
AGREE REALTY CORP (ADC) has a profitability rating of 7 / 10.
What is the earnings growth outlook for AGREE REALTY CORP?
The Earnings per Share (EPS) of AGREE REALTY CORP (ADC) is expected to decline by -1.46% in the next year.
How sustainable is the dividend of AGREE REALTY CORP (ADC) stock?
The dividend rating of AGREE REALTY CORP (ADC) is 6 / 10 and the dividend payout ratio is 183.89%.