AGREE REALTY CORP (ADC)
US0084921008 - REIT
Taking everything into account, ADC scores 4 out of 10 in our fundamental rating. ADC was compared to 126 industry peers in the Diversified REITs industry. While ADC has a great profitability rating, there are quite some 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
ADC's Return On Assets of 2.08% is fine compared to the rest of the industry. ADC outperforms 68.29% of its industry peers.
The Return On Equity of ADC (3.12%) is better than 62.60% of its industry peers.
ADC has a Return On Invested Capital (2.68%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ADC is in line with the industry average of 2.95%.
The last Return On Invested Capital (2.68%) for ADC is above the 3 year average (2.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 3.12% | ||
| ROIC | 2.68% |
ROA(3y)2.18%
ROA(5y)2.37%
ROE(3y)3.25%
ROE(5y)3.61%
ROIC(3y)2.65%
ROIC(5y)2.76%
1.3 Margins
ADC's Profit Margin of 30.16% is amongst the best of the industry. ADC outperforms 82.93% of its industry peers.
In the last couple of years the Profit Margin of ADC has declined.
ADC has a Operating Margin of 48.32%. This is amongst the best in the industry. ADC outperforms 90.24% of its industry peers.
ADC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 87.91%, ADC belongs to the best of the industry, outperforming 92.68% 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 | 48.32% | ||
| PM (TTM) | 30.16% | ||
| GM | 87.91% |
OM growth 3Y-2.4%
OM growth 5Y-2.53%
PM growth 3Y-6.28%
PM growth 5Y-6.48%
GM growth 3Y0.06%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
ADC has a worse debt/assets ratio than last year.
2.2 Solvency
ADC has an Altman-Z score of 1.42. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ADC (1.42) is better than 87.80% of its industry peers.
ADC has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
ADC's Debt to Equity ratio of 0.46 is amongst the best of the industry. ADC outperforms 91.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.35
WACC7.59%
2.3 Liquidity
ADC has a Current Ratio of 0.77. 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's Current ratio of 0.77 is on the low side compared to the rest of the industry. ADC is outperformed by 70.73% of its industry peers.
ADC has a Quick Ratio of 0.77. 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 (0.74) than 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
ADC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.48%.
Measured over the past years, ADC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.30% on average per year.
Looking at the last year, ADC shows a very strong growth in Revenue. The Revenue has grown by 25.05%.
ADC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.42% yearly.
EPS 1Y (TTM)-11.48%
EPS 3Y-2.35%
EPS 5Y-2.3%
EPS growth Q2Q-6.82%
Revenue 1Y (TTM)25.05%
Revenue growth 3Y29.31%
Revenue growth 5Y31.42%
Revenue growth Q2Q23.75%
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 4.41% on average per year.
Based on estimates for the next years, ADC will show a quite strong growth in Revenue. The Revenue will grow by 8.13% on average per year.
EPS Next Y14.72%
EPS Next 2Y8.26%
EPS Next 3Y5.62%
EPS Next 5Y4.41%
Revenue Next Year12.9%
Revenue Next 2Y11.08%
Revenue Next 3Y13.11%
Revenue Next 5Y8.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.91, which means the current valuation is very expensive for ADC.
Compared to the rest of the industry, the Price/Earnings ratio of ADC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.76. ADC is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 30.43, which means the current valuation is very expensive for ADC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADC indicates a somewhat cheap valuation: ADC is cheaper than 75.61% of the companies listed in the same industry.
ADC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.91 | ||
| Fwd PE | 30.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADC is valued more expensive than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ADC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)N/A
EPS Next 2Y8.26%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 5.29%, which is a nice return.
ADC's Dividend Yield is comparable with the industry average which is at 5.97.
Compared to an average S&P500 Dividend Yield of 2.40, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
5.2 History
The dividend of ADC is nicely growing with an annual growth rate of 8.66%!
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)8.66%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
175.90% 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.
DP175.9%
EPS Next 2Y8.26%
EPS Next 3Y5.62%
AGREE REALTY CORP
NYSE:ADC (4/19/2024, 7:04:00 PM)
After market: 56.56 0 (0%)56.56
+0.73 (+1.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.91 | ||
| Fwd PE | 30.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 3.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 48.32% | ||
| PM (TTM) | 30.16% | ||
| GM | 87.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.48%
EPS 3Y-2.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.05%
Revenue growth 3Y29.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y