AGREE REALTY CORP (ADC) Stock Fundamental Analysis
NYSE:ADC - New York Stock Exchange, Inc. - US0084921008 - REIT - Currency: USD
Overall ADC gets a fundamental rating of 4 out of 10. We evaluated ADC against 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
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.
In the past 5 years ADC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.08%, ADC is in the better half of the industry, outperforming 68.99% of the companies in the same industry.
ADC has a Return On Equity of 3.25%. This is in the better half of the industry: ADC outperforms 61.24% of its industry peers.
ADC's Return On Invested Capital of 2.81% is in line compared to the rest of the industry. ADC outperforms 55.04% 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 3.15%.
The last Return On Invested Capital (2.81%) for ADC is above the 3 year average (2.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 3.25% | ||
| ROIC | 2.81% |
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 28.80%, ADC belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
ADC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 48.26%, ADC belongs to the top of the industry, outperforming 89.92% of the companies in the same industry.
In the last couple of years the Operating Margin of ADC has declined.
ADC's Gross Margin of 88.21% is amongst the best of the industry. ADC outperforms 89.15% of its industry peers.
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 | 48.26% | ||
| PM (TTM) | 28.8% | ||
| GM | 88.21% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADC is destroying value.
Compared to 1 year ago, ADC has more shares outstanding
ADC has more shares outstanding than it did 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 1.66. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
ADC has a better Altman-Z score (1.66) than 93.02% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that ADC is somewhat dependend on debt financing.
ADC's Debt to Equity ratio of 0.52 is amongst the best of the industry. ADC outperforms 87.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC0.36
WACC7.82%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ADC may have some problems paying its short term obligations.
ADC has a worse Current ratio (0.74) than 63.57% of its industry peers.
A Quick Ratio of 0.73 indicates that ADC may have some problems paying its short term obligations.
ADC has a Quick ratio of 0.73. This is in the lower half of the industry: ADC underperforms 61.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.27% over the past year.
The Earnings Per Share has been decreasing by -1.17% on average over the past years.
The Revenue has grown by 13.65% in the past year. This is quite good.
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)7.27%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%-10.64%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%13.19%
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 2.81% on average per year.
The Revenue is expected to grow by 13.71% on average over the next years. This is quite good.
EPS Next Y1.83%
EPS Next 2Y6.62%
EPS Next 3Y6.23%
EPS Next 5Y2.81%
Revenue Next Year12.92%
Revenue Next 2Y11.35%
Revenue Next 3Y11.25%
Revenue Next 5Y13.71%
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
The Price/Earnings ratio is 42.31, which means the current valuation is very expensive for ADC.
ADC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.19, ADC is valued quite expensively.
Based on the Price/Forward Earnings ratio of 36.20, the valuation of ADC can be described as expensive.
Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than 67.44% of the companies in the same industry.
ADC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.31 | ||
| Fwd PE | 36.2 |
4.2 Price Multiples
ADC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. ADC is more expensive than 87.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.34 |
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)23.09
PEG (5Y)N/A
EPS Next 2Y6.62%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 4.10%, which is a nice return.
ADC's Dividend Yield is slightly below the industry average, which is at 6.93.
Compared to an average S&P500 Dividend Yield of 2.40, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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 Years11
Div Non Decr Years12
5.3 Sustainability
173.49% 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.
DP173.49%
EPS Next 2Y6.62%
EPS Next 3Y6.23%
NYSE:ADC (5/30/2025, 11:21:56 AM)
74.89
+0.75 (+1.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners112%
Inst Owner Change3.24%
Ins Owners1.29%
Ins Owner Change7.35%
Market Cap8.24B
Analysts81.6
Price Target83.36 (11.31%)
Short Float %10.97%
Short Ratio7.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP173.49%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.59%
Min EPS beat(2)-5.6%
Max EPS beat(2)-1.58%
EPS beat(4)1
Avg EPS beat(4)1.46%
Min EPS beat(4)-5.6%
Max EPS beat(4)16.63%
EPS beat(8)2
Avg EPS beat(8)-2.55%
EPS beat(12)4
Avg EPS beat(12)-1.41%
EPS beat(16)7
Avg EPS beat(16)0.32%
Revenue beat(2)2
Avg Revenue beat(2)1.99%
Min Revenue beat(2)1.78%
Max Revenue beat(2)2.2%
Revenue beat(4)4
Avg Revenue beat(4)1.87%
Min Revenue beat(4)1.32%
Max Revenue beat(4)2.2%
Revenue beat(8)8
Avg Revenue beat(8)1.63%
Revenue beat(12)11
Avg Revenue beat(12)1.52%
Revenue beat(16)12
Avg Revenue beat(16)1.02%
PT rev (1m)1.55%
PT rev (3m)2.67%
EPS NQ rev (1m)5.06%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)6.07%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)1.64%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.31 | ||
| Fwd PE | 36.2 | ||
| P/S | 12.94 | ||
| P/FCF | N/A | ||
| P/OCF | 18.09 | ||
| P/B | 1.46 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 21.34 |
EPS(TTM)1.77
EY2.36%
EPS(NY)2.07
Fwd EY2.76%
FCF(TTM)-6.89
FCFYN/A
OCF(TTM)4.14
OCFY5.53%
SpS5.79
BVpS51.3
TBVpS43.15
PEG (NY)23.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 3.25% | ||
| ROCE | 3.55% | ||
| ROIC | 2.81% | ||
| ROICexc | 2.81% | ||
| ROICexgc | 3.15% | ||
| OM | 48.26% | ||
| PM (TTM) | 28.8% | ||
| GM | 88.21% | ||
| 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-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.66 | ||
| Cap/Depr | 566.4% | ||
| Cap/Sales | 190.59% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 87.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.66 |
F-Score5
WACC7.82%
ROIC/WACC0.36
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)7.27%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%-10.64%
EPS Next Y1.83%
EPS Next 2Y6.62%
EPS Next 3Y6.23%
EPS Next 5Y2.81%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%13.19%
Revenue Next Year12.92%
Revenue Next 2Y11.35%
Revenue Next 3Y11.25%
Revenue Next 5Y13.71%
EBIT growth 1Y12.9%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year100.81%
EBIT Next 3Y38.22%
EBIT Next 5Y28.18%
FCF growth 1Y34.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.37%
OCF growth 3Y20.6%
OCF growth 5Y27.8%