AGREE REALTY CORP (ADC)
US0084921008 - REIT
ADC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. ADC has an excellent profitability rating, but there are concerns on its financial health. ADC shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year ADC was profitable.
ADC had a positive operating cash flow in the past year.
In the past 5 years ADC has always been profitable.
Each year in the past 5 years ADC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.24%, ADC is doing good in the industry, outperforming 68.00% of the companies in the same industry.
ADC has a better Return On Equity (3.47%) than 61.60% of its industry peers.
ADC has a Return On Invested Capital of 2.85%. This is comparable to the rest of the industry: ADC outperforms 55.20% 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 (2.85%) for ADC is above the 3 year average (2.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 3.47% | ||
| ROIC | 2.85% |
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
Looking at the Profit Margin, with a value of 30.74%, ADC belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
ADC's Profit Margin has declined in the last couple of years.
ADC has a better Operating Margin (48.78%) than 90.40% of its industry peers.
ADC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 88.27%, ADC belongs to the best of the industry, outperforming 92.80% 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 | 48.78% | ||
| PM (TTM) | 30.74% | ||
| GM | 88.27% |
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
ADC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Based on the Altman-Z score of 1.56, we must say that ADC is in the distress zone and has some risk of bankruptcy.
ADC's Altman-Z score of 1.56 is amongst the best of the industry. ADC outperforms 88.80% of its industry peers.
ADC has a Debt/Equity ratio of 0.52. This is a neutral value indicating ADC is somewhat dependend on debt financing.
The Debt to Equity ratio of ADC (0.52) is better than 90.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACC0.38
WACC7.53%
2.3 Liquidity
A Current Ratio of 0.79 indicates that ADC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, ADC is doing worse than 74.40% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that ADC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, ADC is doing worse than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
ADC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.61%, which is quite impressive.
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.
The Revenue has grown by 20.68% in the past year. This is a very strong growth!
ADC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.42% yearly.
EPS 1Y (TTM)31.61%
EPS 3Y-2.35%
EPS 5Y-2.3%
EPS Q2Q%160%
Revenue 1Y (TTM)20.68%
Revenue growth 3Y29.31%
Revenue growth 5Y31.42%
Sales Q2Q%17.46%
3.2 Future
ADC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.34% yearly.
Based on estimates for the next years, ADC will show a quite strong growth in Revenue. The Revenue will grow by 12.07% on average per year.
EPS Next Y12.7%
EPS Next 2Y9.52%
EPS Next 3Y7.93%
EPS Next 5Y5.34%
Revenue Next Year12.2%
Revenue Next 2Y9.48%
Revenue Next 3Y8.24%
Revenue Next 5Y12.07%
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 30.01, ADC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ADC is valued a bit cheaper than 64.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, ADC is valued a bit more expensive.
ADC is valuated quite expensively with a Price/Forward Earnings ratio of 35.37.
Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ADC to the average of the S&P500 Index (20.59), we can say ADC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.01 | ||
| Fwd PE | 35.37 |
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 84.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.95 |
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)2.36
PEG (5Y)N/A
EPS Next 2Y9.52%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 4.42%, which is a nice return.
ADC's Dividend Yield is comparable with the industry average which is at 5.52.
Compared to an average S&P500 Dividend Yield of 2.30, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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
168.48% 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.
DP168.48%
EPS Next 2Y9.52%
EPS Next 3Y7.93%
AGREE REALTY CORP
NYSE:ADC (7/26/2024, 7:14:59 PM)
After market: 68.73 0 (0%)68.73
+0.83 (+1.22%)
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 Cap6.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 30.01 | ||
| Fwd PE | 35.37 | ||
| 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)2.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 3.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 48.78% | ||
| PM (TTM) | 30.74% | ||
| GM | 88.27% | ||
| 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 | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)31.61%
EPS 3Y-2.35%
EPS 5Y
EPS Q2Q%
EPS Next Y12.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.68%
Revenue growth 3Y29.31%
Revenue growth 5Y
Sales 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