AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - NYSE:ADC - US0084921008 - REIT
73.15 USD
+0.46 (+0.63%)
73.15 USD
0 (0%)
Taking everything into account, ADC scores 4 out of 10 in our fundamental rating. ADC was compared to 129 industry peers in the Diversified REITs industry. ADC scores excellent on profitability, 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
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.
In the past 5 years ADC always reported a positive cash flow from operatings.
1.2 Ratios
ADC has a Return On Assets of 1.96%. This is in the better half of the industry: ADC outperforms 64.34% of its industry peers.
Looking at the Return On Equity, with a value of 3.15%, ADC is in line with its industry, outperforming 56.59% of the companies in the same industry.
ADC's Return On Invested Capital of 2.80% is in line compared to the rest of the industry. ADC outperforms 52.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADC is in line with the industry average of 3.01%.
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
Looking at the Profit Margin, with a value of 26.97%, ADC belongs to the top of the industry, outperforming 82.17% of the companies in the same industry.
In the last couple of years the Profit Margin of ADC has declined.
The Operating Margin of ADC (47.89%) is better than 89.92% of its industry peers.
In the last couple of years the Operating Margin of ADC has declined.
ADC has a Gross Margin of 88.01%. This is amongst the best in the industry. ADC outperforms 89.15% 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
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.
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.
With an excellent Altman-Z score value of 1.51, ADC belongs to the best of the industry, outperforming 91.47% 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 better Debt to Equity ratio (0.57) than 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
WACC7.49%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ADC may have some problems paying its short term obligations.
With a Current ratio value of 0.74, ADC is not doing good in the industry: 63.57% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that ADC may have some problems paying its short term obligations.
ADC has a Quick ratio of 0.72. This is in the lower half of the industry: ADC underperforms 63.57% 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 -5.08% 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.
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
ADC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
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-0.82%
EPS Next 2Y4.23%
EPS Next 3Y3.95%
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
With a Price/Earnings ratio of 43.54, ADC can be considered very expensive at the moment.
ADC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ADC to the average of the S&P500 Index (27.50), we can say ADC is valued expensively.
A Price/Forward Earnings ratio of 37.00 indicates a quite expensive valuation of ADC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADC indicates a somewhat cheap valuation: ADC is cheaper than 68.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, ADC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.54 | ||
| Fwd PE | 37 |
4.2 Price Multiples
88.37% of the companies in the same industry are cheaper than ADC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21 |
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 2Y4.23%
EPS Next 3Y3.95%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 5.90%, which is a nice return.
Compared to an average industry Dividend Yield of 7.01, ADC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
5.2 History
The dividend of ADC is nicely growing with an annual growth rate of 6.62%!
ADC has paid a dividend for at least 10 years, which is 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
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 2Y4.23%
EPS Next 3Y3.95%
73.15
+0.46 (+0.63%)
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 Change0.02%
Ins Owners1.33%
Ins Owner Change1.6%
Market Cap8.10B
Analysts79.2
Price Target83.85 (14.63%)
Short Float %10%
Short Ratio11.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
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)0.4%
PT rev (3m)0.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.54 | ||
| Fwd PE | 37 | ||
| P/S | 12.27 | ||
| P/FCF | N/A | ||
| P/OCF | 16.93 | ||
| P/B | 1.43 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 21 |
EPS(TTM)1.68
EY2.3%
EPS(NY)1.98
Fwd EY2.7%
FCF(TTM)-8.01
FCFYN/A
OCF(TTM)4.32
OCFY5.91%
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
WACC7.49%
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-0.82%
EPS Next 2Y4.23%
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 Year16.74%
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%