AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
74.42 USD
-0.05 (-0.07%)
Taking everything into account, ADC scores 5 out of 10 in our fundamental rating. ADC was compared to 128 industry peers in the Diversified REITs industry. ADC has an excellent profitability rating, but 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.
Each year in the past 5 years ADC has been profitable.
ADC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.96%, ADC is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
With a Return On Equity value of 3.16%, ADC perfoms like the industry average, outperforming 58.59% of the companies in the same industry.
ADC has a Return On Invested Capital of 2.80%. This is comparable to the rest of the industry: ADC outperforms 50.78% of its industry peers.
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 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 | 3.16% | ||
| 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's Profit Margin of 26.96% is amongst the best of the industry. ADC outperforms 82.03% of its industry peers.
In the last couple of years the Profit Margin of ADC has declined.
With an excellent Operating Margin value of 47.89%, ADC belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
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 89.06% 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 | 47.89% | ||
| PM (TTM) | 26.96% | ||
| 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
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
ADC has an Altman-Z score of 1.52. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.52, ADC belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that ADC is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.57, ADC belongs to the best of the industry, outperforming 86.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.37
WACC7.57%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
The Current ratio of ADC (0.70) is worse than 69.53% of its industry peers.
A Quick Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
ADC has a Quick ratio of 0.70. This is in the lower half of the industry: ADC underperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for ADC have decreased by -6.04% in the last year.
ADC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.17% yearly.
The Revenue has grown by 14.67% 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)14.67%
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 4.45% yearly.
ADC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.42% yearly.
EPS Next Y-1.14%
EPS Next 2Y4.43%
EPS Next 3Y4.05%
EPS Next 5Y4.45%
Revenue Next Year17.09%
Revenue Next 2Y14.06%
Revenue Next 3Y13.76%
Revenue Next 5Y16.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
ADC is valuated quite expensively with a Price/Earnings ratio of 43.52.
The rest of the industry has a similar Price/Earnings ratio as ADC.
ADC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.37.
ADC is valuated quite expensively with a Price/Forward Earnings ratio of 37.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADC indicates a somewhat cheap valuation: ADC is cheaper than 67.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, ADC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.52 | ||
| Fwd PE | 37.5 |
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 84.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.18 |
4.3 Compensation for Growth
ADC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.43%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, ADC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.34, ADC is paying slightly less dividend.
ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of ADC is nicely growing with an annual growth rate of 6.62%!
ADC has been paying a dividend for at least 10 years, so it has a reliable track record.
ADC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.62%
Div Incr Years12
Div Non Decr Years13
5.3 Sustainability
181.44% of the earnings are spent on dividend by ADC. This is not a sustainable payout ratio.
ADC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP181.44%
EPS Next 2Y4.43%
EPS Next 3Y4.05%
NYSE:ADC (12/4/2025, 1:49:34 PM)
74.42
-0.05 (-0.07%)
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-0.38%
Ins Owners1.33%
Ins Owner Change1.49%
Market Cap8.55B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target83.85 (12.67%)
Short Float %8.31%
Short Ratio9.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP181.44%
Div Incr Years12
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.86%
Min EPS beat(2)-5.91%
Max EPS beat(2)-1.81%
EPS beat(4)0
Avg EPS beat(4)-3.72%
Min EPS beat(4)-5.91%
Max EPS beat(4)-1.58%
EPS beat(8)2
Avg EPS beat(8)-0.87%
EPS beat(12)3
Avg EPS beat(12)-2.21%
EPS beat(16)5
Avg EPS beat(16)-1.66%
Revenue beat(2)2
Avg Revenue beat(2)1.81%
Min Revenue beat(2)1.63%
Max Revenue beat(2)1.98%
Revenue beat(4)4
Avg Revenue beat(4)1.9%
Min Revenue beat(4)1.63%
Max Revenue beat(4)2.2%
Revenue beat(8)8
Avg Revenue beat(8)1.81%
Revenue beat(12)12
Avg Revenue beat(12)1.75%
Revenue beat(16)14
Avg Revenue beat(16)1.36%
PT rev (1m)0%
PT rev (3m)0.4%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.52 | ||
| Fwd PE | 37.5 | ||
| P/S | 12.42 | ||
| P/FCF | N/A | ||
| P/OCF | 17.66 | ||
| P/B | 1.46 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 21.18 |
EPS(TTM)1.71
EY2.3%
EPS(NY)1.98
Fwd EY2.67%
FCF(TTM)-9.45
FCFYN/A
OCF(TTM)4.21
OCFY5.66%
SpS5.99
BVpS51.1
TBVpS42.69
PEG (NY)N/A
PEG (5Y)N/A
Graham Number44.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 3.16% | ||
| ROCE | 3.55% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.81% | ||
| ROICexgc | 3.15% | ||
| OM | 47.89% | ||
| PM (TTM) | 26.96% | ||
| 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 | 5.99 | ||
| Cap/Depr | 675.45% | ||
| Cap/Sales | 227.99% | ||
| Interest Coverage | 2.48 | ||
| Cash Conversion | 86.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.52 |
F-Score3
WACC7.57%
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-1.14%
EPS Next 2Y4.43%
EPS Next 3Y4.05%
EPS Next 5Y4.45%
Revenue 1Y (TTM)14.67%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
Revenue Next Year17.09%
Revenue Next 2Y14.06%
Revenue Next 3Y13.76%
Revenue Next 5Y16.42%
EBIT growth 1Y12.4%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year99.63%
EBIT Next 3Y38.43%
EBIT Next 5Y33.59%
FCF growth 1Y4.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.19%
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 5 / 10 to ADC.
What is the valuation status of AGREE REALTY CORP (ADC) stock?
ChartMill assigns a valuation rating of 2 / 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 -1.14% 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 181.44%.