AGREE REALTY CORP (ADC) Stock Fundamental Analysis
NYSE:ADC - US0084921008 - REIT
72.23 USD
-0.57 (-0.78%)
We assign a fundamental rating of 4 out of 10 to ADC. ADC was compared to 129 industry peers in the Diversified REITs industry. ADC has an excellent profitability rating, but there are concerns on its financial health. ADC is quite expensive at the moment. 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.
In the past 5 years ADC has always been profitable.
ADC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADC has a better Return On Assets (1.96%) than 64.34% of its industry peers.
ADC has a Return On Equity of 3.15%. This is comparable to the rest of the industry: ADC outperforms 56.59% of its industry peers.
ADC has a Return On Invested Capital (2.80%) which is comparable to the rest of the industry.
ADC had an Average Return On Invested Capital over the past 3 years of 2.69%. This is in line with the industry average of 3.06%.
The last Return On Invested Capital (2.80%) for ADC is above the 3 year average (2.69%), which is a sign of increasing profitability.
| 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
ADC has a Profit Margin of 26.97%. This is amongst the best in the industry. ADC outperforms 82.17% of its industry peers.
ADC's Profit Margin has declined in the last couple of years.
ADC has a better Operating Margin (47.89%) than 89.92% of its industry peers.
ADC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 88.01%, ADC belongs to the best of the industry, outperforming 89.15% of the companies in the same industry.
In the last couple of years the Gross Margin of ADC has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADC is destroying value.
Compared to 1 year ago, ADC has more shares outstanding
Compared to 5 years ago, ADC has more shares outstanding
Compared to 1 year ago, ADC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that ADC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.51, ADC belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
ADC has a Debt/Equity ratio of 0.57. This is a neutral value indicating ADC is somewhat dependend on debt financing.
ADC has a Debt to Equity ratio of 0.57. This is amongst the best in the industry. ADC outperforms 87.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC0.37
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ADC may have some problems paying its short term obligations.
ADC has a Current ratio (0.74) which is in line with 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 worse Quick ratio (0.72) than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
ADC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.08%.
The Earnings Per Share has been decreasing by -1.17% on average over the past years.
ADC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.17%.
ADC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.90% yearly.
EPS 1Y (TTM)-5.08%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%-17.31%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%15.04%
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 5.00% on average per year.
ADC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.94% yearly.
EPS Next Y-0.59%
EPS Next 2Y4.33%
EPS Next 3Y3.95%
EPS Next 5Y5%
Revenue Next Year16.41%
Revenue Next 2Y13.44%
Revenue Next 3Y12.96%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 42.99, which means the current valuation is very expensive for ADC.
ADC's Price/Earnings is on the same level as the industry average.
ADC is valuated expensively when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 36.46, which means the current valuation is very expensive for ADC.
Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than 68.99% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, ADC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.99 | ||
| Fwd PE | 36.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADC indicates a rather expensive valuation: ADC more expensive than 88.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.93 |
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 2Y4.33%
EPS Next 3Y3.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, ADC is a good candidate for dividend investing.
ADC's Dividend Yield is slightly below the industry average, which is at 6.31.
ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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
183.89% of the earnings are spent on dividend by ADC. 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.
DP183.89%
EPS Next 2Y4.33%
EPS Next 3Y3.95%
NYSE:ADC (8/28/2025, 2:39:02 PM)
72.23
-0.57 (-0.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners113.35%
Inst Owner Change3.36%
Ins Owners1.33%
Ins Owner Change1.74%
Market Cap7.99B
Analysts79.2
Price Target83.52 (15.63%)
Short Float %11.08%
Short Ratio10.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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)0.08%
PT rev (3m)0.19%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)4.03%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.99 | ||
| Fwd PE | 36.46 | ||
| P/S | 12.12 | ||
| P/FCF | N/A | ||
| P/OCF | 16.72 | ||
| P/B | 1.41 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 20.93 |
EPS(TTM)1.68
EY2.33%
EPS(NY)1.98
Fwd EY2.74%
FCF(TTM)-8.01
FCFYN/A
OCF(TTM)4.32
OCFY5.98%
SpS5.96
BVpS51.09
TBVpS42.75
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-0.04%
ROICexcg 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 | 1.51 |
F-Score3
WACC7.64%
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)-5.08%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%-17.31%
EPS Next Y-0.59%
EPS Next 2Y4.33%
EPS Next 3Y3.95%
EPS Next 5Y5%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%15.04%
Revenue Next Year16.41%
Revenue Next 2Y13.44%
Revenue Next 3Y12.96%
Revenue Next 5Y15.94%
EBIT growth 1Y11.11%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year99.83%
EBIT Next 3Y38.46%
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%