AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
73.9 USD
-0.48 (-0.65%)
73.9 USD
0 (0%)
Overall ADC gets a fundamental rating of 5 out of 10. We evaluated ADC against 128 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. While showing a medium growth rate, ADC is valued expensive at the moment.
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 65.63% of its industry peers.
ADC has a Return On Equity of 3.16%. This is comparable to the rest of the industry: ADC outperforms 58.59% 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 | 3.16% | ||
| 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.
ADC's Profit Margin has declined in the last couple of years.
ADC has a better Operating Margin (47.89%) than 89.84% of its industry peers.
ADC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 88.01%, ADC belongs to the top of the industry, outperforming 89.06% 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) | 26.96% | ||
| 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.
ADC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADC has more shares outstanding
The debt/assets ratio for ADC is higher compared to a year ago.
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.
ADC has a better Altman-Z score (1.51) than 90.63% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that ADC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, ADC belongs to the top 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 | 1.51 |
ROIC/WACC0.37
WACC7.6%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
With a Current ratio value of 0.70, ADC is not doing good in the industry: 69.53% of the companies in the same industry are doing better.
A Quick Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
With a Quick ratio value of 0.70, ADC is not doing good in the industry: 67.19% of the companies in the same industry are doing better.
| 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.
Measured over the past years, ADC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.17% on average per year.
ADC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.67%.
Measured over the past years, ADC shows a very strong growth in Revenue. The Revenue has been growing by 26.90% on average per year.
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
Based on estimates for the next years, ADC will show a small growth in Earnings Per Share. The EPS will grow by 4.45% on average per year.
The Revenue is expected to grow by 16.42% on average over the next years. This is quite good.
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
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
With a Price/Earnings ratio of 43.22, 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 (26.46), we can say ADC is valued expensively.
Based on the Price/Forward Earnings ratio of 37.24, the valuation of ADC can be described as expensive.
67.19% of the companies in the same industry are more expensive than ADC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ADC to the average of the S&P500 Index (36.10), we can say ADC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.22 | ||
| Fwd PE | 37.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADC is valued expensively inside the industry as 84.38% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.17 |
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 2Y4.43%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.23%, ADC is a good candidate for dividend investing.
ADC's Dividend Yield is slightly below the industry average, which is at 6.58.
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 | 4.23% |
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
181.44% 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.
DP181.44%
EPS Next 2Y4.43%
EPS Next 3Y4.05%
73.9
-0.48 (-0.65%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners113.79%
Inst Owner Change-0.38%
Ins Owners1.28%
Ins Owner Change1.49%
Market Cap8.49B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target84.15 (13.87%)
Short Float %8.31%
Short Ratio9.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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 | 43.22 | ||
| Fwd PE | 37.24 | ||
| P/S | 12.33 | ||
| P/FCF | N/A | ||
| P/OCF | 17.54 | ||
| P/B | 1.45 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 21.17 |
EPS(TTM)1.71
EY2.31%
EPS(NY)1.98
Fwd EY2.69%
FCF(TTM)-9.45
FCFYN/A
OCF(TTM)4.21
OCFY5.7%
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 | 1.51 |
F-Score3
WACC7.6%
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%.