AGREE REALTY CORP (ADC)
US0084921008 - REIT
ADC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Diversified REITs industry. ADC scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, ADC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ADC had positive earnings in the past year.
ADC had a positive operating cash flow in the past year.
ADC had positive earnings in each of the past 5 years.
ADC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ADC (2.24%) is better than 68.25% of its industry peers.
The Return On Equity of ADC (3.47%) is better than 60.32% of its industry peers.
The Return On Invested Capital of ADC (2.85%) is comparable to the rest of the industry.
ADC had an Average Return On Invested Capital over the past 3 years of 2.65%. This is in line with the industry average of 3.05%.
The 3 year average ROIC (2.65%) for ADC is below the current ROIC(2.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 3.47% | ||
| ROIC | 2.85% |
ROA(3y)2.18%
ROA(5y)2.37%
ROE(3y)3.25%
ROE(5y)3.61%
ROIC(3y)2.65%
ROIC(5y)2.76%
1.3 Margins
ADC's Profit Margin of 30.74% is amongst the best of the industry. ADC outperforms 84.13% of its industry peers.
In the last couple of years the Profit Margin of ADC has declined.
The Operating Margin of ADC (48.78%) is better than 90.48% of its industry peers.
ADC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 88.27%, ADC belongs to the best of the industry, outperforming 91.27% of the companies in the same industry.
ADC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.78% | ||
| PM (TTM) | 30.74% | ||
| GM | 88.27% |
OM growth 3Y-2.4%
OM growth 5Y-2.53%
PM growth 3Y-6.28%
PM growth 5Y-6.48%
GM growth 3Y0.06%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADC is destroying value.
The number of shares outstanding for ADC has been increased compared to 1 year ago.
The number of shares outstanding for ADC has been increased compared to 5 years ago.
The debt/assets ratio for ADC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that ADC is in the distress zone and has some risk of bankruptcy.
ADC has a better Altman-Z score (1.71) than 89.68% of its industry peers.
ADC has a Debt/Equity ratio of 0.52. This is a neutral value indicating ADC is somewhat dependend on debt financing.
ADC has a Debt to Equity ratio of 0.52. This is amongst the best in the industry. ADC outperforms 89.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.4
WACC7.2%
2.3 Liquidity
A Current Ratio of 0.79 indicates that ADC may have some problems paying its short term obligations.
The Current ratio of ADC (0.79) is worse than 69.84% of its industry peers.
A Quick Ratio of 0.79 indicates that ADC may have some problems paying its short term obligations.
ADC has a worse Quick ratio (0.79) than 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
ADC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.72%.
ADC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.30% yearly.
ADC shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.68%.
ADC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.42% yearly.
EPS 1Y (TTM)1.72%
EPS 3Y-2.35%
EPS 5Y-2.3%
EPS Q2Q%30%
Revenue 1Y (TTM)20.68%
Revenue growth 3Y29.31%
Revenue growth 5Y31.42%
Sales Q2Q%17.46%
3.2 Future
Based on estimates for the next years, ADC will show a small growth in Earnings Per Share. The EPS will grow by 5.34% on average per year.
Based on estimates for the next years, ADC will show a quite strong growth in Revenue. The Revenue will grow by 12.07% on average per year.
EPS Next Y11.6%
EPS Next 2Y7.69%
EPS Next 3Y6.8%
EPS Next 5Y5.34%
Revenue Next Year12.46%
Revenue Next 2Y9.93%
Revenue Next 3Y10.73%
Revenue Next 5Y12.07%
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
ADC is valuated quite expensively with a Price/Earnings ratio of 42.40.
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 (29.62), we can say ADC is valued slightly more expensively.
With a Price/Forward Earnings ratio of 39.94, ADC can be considered very expensive at the moment.
ADC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADC is cheaper than 65.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADC to the average of the S&P500 Index (21.22), we can say ADC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.4 | ||
| Fwd PE | 39.94 |
4.2 Price Multiples
ADC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. ADC is more expensive than 86.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ADC may justify a higher PE ratio.
PEG (NY)3.66
PEG (5Y)N/A
EPS Next 2Y7.69%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.01%, ADC is a good candidate for dividend investing.
ADC's Dividend Yield is comparable with the industry average which is at 5.59.
ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
5.2 History
The dividend of ADC is nicely growing with an annual growth rate of 8.66%!
ADC has been paying a dividend for at least 10 years, so it has a reliable track record.
ADC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.66%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
ADC pays out 168.48% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ADC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP168.48%
EPS Next 2Y7.69%
EPS Next 3Y6.8%
AGREE REALTY CORP
NYSE:ADC (9/6/2024, 8:04:00 PM)
After market: 75.04 0 (0%)75.04
+0.14 (+0.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.4 | ||
| Fwd PE | 39.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 3.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 48.78% | ||
| PM (TTM) | 30.74% | ||
| GM | 88.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.72%
EPS 3Y-2.35%
EPS 5Y
EPS Q2Q%
EPS Next Y11.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.68%
Revenue growth 3Y29.31%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y