AGREE REALTY CORP (ADC) Fundamental Analysis & Valuation
NYSE:ADC • US0084921008
Current stock price
79.46 USD
+0.53 (+0.67%)
At close:
79.4339 USD
-0.03 (-0.03%)
After Hours:
This ADC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ADC Profitability Analysis
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
- ADC has a better Return On Assets (2.01%) than 65.04% of its industry peers.
- The Return On Equity of ADC (3.13%) is comparable to the rest of the industry.
- The Return On Invested Capital of ADC (2.85%) is comparable to the rest of the industry.
- ADC had an Average Return On Invested Capital over the past 3 years of 2.78%. This is in line with the industry average of 3.13%.
- The 3 year average ROIC (2.78%) for ADC is below the current ROIC(2.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 3.13% | ||
| ROIC | 2.85% |
ROA(3y)2.08%
ROA(5y)2.13%
ROE(3y)3.18%
ROE(5y)3.23%
ROIC(3y)2.78%
ROIC(5y)2.72%
1.3 Margins
- Looking at the Profit Margin, with a value of 27.35%, ADC is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of ADC has declined.
- ADC has a better Operating Margin (48.29%) than 90.24% of its industry peers.
- In the last couple of years the Operating Margin of ADC has remained more or less at the same level.
- With an excellent Gross Margin value of 88.03%, ADC belongs to the best of the industry, outperforming 87.80% 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 | 48.29% | ||
| PM (TTM) | 27.35% | ||
| GM | 88.03% |
OM growth 3Y-0.99%
OM growth 5Y-1.46%
PM growth 3Y-6.67%
PM growth 5Y-5.69%
GM growth 3Y-0.08%
GM growth 5Y0.07%
2. ADC Health Analysis
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.
- Compared to 1 year ago, ADC has more shares outstanding
- The number of shares outstanding for ADC has been increased compared to 5 years ago.
- The debt/assets ratio for ADC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.71, we must say that ADC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.71, ADC belongs to the top of the industry, outperforming 91.06% of the companies in the same industry.
- A Debt/Equity ratio of 0.53 indicates that ADC is somewhat dependend on debt financing.
- ADC has a better Debt to Equity ratio (0.53) than 86.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.38
WACC7.56%
2.3 Liquidity
- ADC has a Current Ratio of 0.82. This is a bad value and indicates that ADC is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.82, ADC perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
- A Quick Ratio of 0.82 indicates that ADC may have some problems paying its short term obligations.
- ADC's Quick ratio of 0.82 is in line compared to the rest of the industry. ADC outperforms 49.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. ADC Growth Analysis
3.1 Past
- ADC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.75%.
- Measured over the past 5 years, ADC shows a small growth in Earnings Per Share. The EPS has been growing by 0.34% on average per year.
- Looking at the last year, ADC shows a quite strong growth in Revenue. The Revenue has grown by 16.42% in the last year.
- ADC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.64% yearly.
EPS 1Y (TTM)-2.75%
EPS 3Y-1.11%
EPS 5Y0.34%
EPS Q2Q%14.63%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y18.68%
Revenue growth 5Y23.64%
Sales Q2Q%18.51%
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 5.31% on average per year.
- The Revenue is expected to grow by 14.88% on average over the next years. This is quite good.
EPS Next Y14.5%
EPS Next 2Y13.18%
EPS Next 3Y9.01%
EPS Next 5Y5.31%
Revenue Next Year11.26%
Revenue Next 2Y10.67%
Revenue Next 3Y12.33%
Revenue Next 5Y14.88%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. ADC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 44.89, 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.
- ADC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.87.
- Based on the Price/Forward Earnings ratio of 39.21, the valuation of ADC can be described as expensive.
- Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
- ADC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 38.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.89 | ||
| Fwd PE | 39.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADC is valued expensively inside the industry as 82.11% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.77 |
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)3.09
PEG (5Y)131.08
EPS Next 2Y13.18%
EPS Next 3Y9.01%
5. ADC Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.06%, ADC is a good candidate for dividend investing.
- ADC's Dividend Yield is slightly below the industry average, which is at 7.42.
- ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
5.2 History
- On average, the dividend of ADC grows each year by 6.85%, which is quite nice.
- ADC has been paying a dividend for at least 10 years, so it has 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)6.85%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
- 177.18% 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.
DP177.18%
EPS Next 2Y13.18%
EPS Next 3Y9.01%
ADC Fundamentals: All Metrics, Ratios and Statistics
79.46
+0.53 (+0.67%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-10 2026-02-10/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners111.04%
Inst Owner Change0.02%
Ins Owners1.29%
Ins Owner Change3.26%
Market Cap9.54B
Revenue(TTM)718.40M
Net Income(TTM)196.46M
Analysts78.33
Price Target85.43 (7.51%)
Short Float %12.68%
Short Ratio11.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend3.06
Dividend Growth(5Y)6.85%
DP177.18%
Div Incr Years13
Div Non Decr Years14
Ex-Date04-30 2026-04-30 (0.267)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.61%
Min EPS beat(2)-1.81%
Max EPS beat(2)-1.41%
EPS beat(4)0
Avg EPS beat(4)-2.68%
Min EPS beat(4)-5.91%
Max EPS beat(4)-1.41%
EPS beat(8)2
Avg EPS beat(8)0.13%
EPS beat(12)2
Avg EPS beat(12)-2.6%
EPS beat(16)5
Avg EPS beat(16)-1.25%
Revenue beat(2)2
Avg Revenue beat(2)1.83%
Min Revenue beat(2)1.67%
Max Revenue beat(2)1.98%
Revenue beat(4)4
Avg Revenue beat(4)1.87%
Min Revenue beat(4)1.63%
Max Revenue beat(4)2.2%
Revenue beat(8)8
Avg Revenue beat(8)1.72%
Revenue beat(12)12
Avg Revenue beat(12)1.87%
Revenue beat(16)15
Avg Revenue beat(16)1.55%
PT rev (1m)1.87%
PT rev (3m)1.31%
EPS NQ rev (1m)2.08%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)-2.82%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.89 | ||
| Fwd PE | 39.21 | ||
| P/S | 13.28 | ||
| P/FCF | N/A | ||
| P/OCF | 18.93 | ||
| P/B | 1.52 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 21.77 |
EPS(TTM)1.77
EY2.23%
EPS(NY)2.03
Fwd EY2.55%
FCF(TTM)-8.99
FCFYN/A
OCF(TTM)4.2
OCFY5.28%
SpS5.98
BVpS52.21
TBVpS43.88
PEG (NY)3.09
PEG (5Y)131.08
Graham Number45.601 (-42.61%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 3.13% | ||
| ROCE | 3.6% | ||
| ROIC | 2.85% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 3.19% | ||
| OM | 48.29% | ||
| PM (TTM) | 27.35% | ||
| GM | 88.03% | ||
| FCFM | N/A |
ROA(3y)2.08%
ROA(5y)2.13%
ROE(3y)3.18%
ROE(5y)3.23%
ROIC(3y)2.78%
ROIC(5y)2.72%
ROICexc(3y)2.79%
ROICexc(5y)2.73%
ROICexgc(3y)3.13%
ROICexgc(5y)3.1%
ROCE(3y)3.52%
ROCE(5y)3.45%
ROICexgc growth 3Y2.95%
ROICexgc growth 5Y0.55%
ROICexc growth 3Y3.59%
ROICexc growth 5Y1.06%
OM growth 3Y-0.99%
OM growth 5Y-1.46%
PM growth 3Y-6.67%
PM growth 5Y-5.69%
GM growth 3Y-0.08%
GM growth 5Y0.07%
F-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 661.71% | ||
| Cap/Sales | 220.43% | ||
| Interest Coverage | 2.69 | ||
| Cash Conversion | 86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.71 |
F-Score5
WACC7.56%
ROIC/WACC0.38
Cap/Depr(3y)621.59%
Cap/Depr(5y)922.9%
Cap/Sales(3y)206.17%
Cap/Sales(5y)285.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.75%
EPS 3Y-1.11%
EPS 5Y0.34%
EPS Q2Q%14.63%
EPS Next Y14.5%
EPS Next 2Y13.18%
EPS Next 3Y9.01%
EPS Next 5Y5.31%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y18.68%
Revenue growth 5Y23.64%
Sales Q2Q%18.51%
Revenue Next Year11.26%
Revenue Next 2Y10.67%
Revenue Next 3Y12.33%
Revenue Next 5Y14.88%
EBIT growth 1Y16.39%
EBIT growth 3Y17.51%
EBIT growth 5Y21.84%
EBIT Next Year115.84%
EBIT Next 3Y40.6%
EBIT Next 5YN/A
FCF growth 1Y-97.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.71%
OCF growth 3Y11.66%
OCF growth 5Y28.66%
AGREE REALTY CORP / ADC Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for AGREE REALTY CORP?
ChartMill assigns a fundamental rating of 5 / 10 to ADC.
Can you provide the valuation status for AGREE REALTY CORP?
ChartMill assigns a valuation rating of 2 / 10 to AGREE REALTY CORP (ADC). This can be considered as Overvalued.
How profitable is AGREE REALTY CORP (ADC) stock?
AGREE REALTY CORP (ADC) has a profitability rating of 7 / 10.
What is the financial health of AGREE REALTY CORP (ADC) stock?
The financial health rating of AGREE REALTY CORP (ADC) is 2 / 10.
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 177.18%.