AGREE REALTY CORP (ADC)

US0084921008 - REIT

57.51  +0.47 (+0.82%)

After market: 57.51 0 (0%)

Fundamental Rating

4

Overall ADC gets a fundamental rating of 4 out of 10. We evaluated ADC against 128 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.



7

1. Profitability

1.1 Basic Checks

ADC had positive earnings in the past year.
ADC had a positive operating cash flow in the past year.
In the past 5 years ADC has always 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 69.35% of the companies in the same industry.
With a Return On Equity value of 3.12%, ADC perfoms like the industry average, outperforming 57.26% of the companies in the same industry.
ADC has a Return On Invested Capital (2.68%) which is comparable to the rest of the industry.
ADC had an Average Return On Invested Capital over the past 3 years of 2.65%. This is in line with the industry average of 2.99%.
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 RankSector 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 has a better Profit Margin (30.16%) than 86.29% of its industry peers.
ADC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 48.32%, ADC belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
In the last couple of years the Operating Margin of ADC has declined.
ADC has a Gross Margin of 87.91%. This is amongst the best in the industry. ADC outperforms 93.55% 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 RankSector 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

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.
Compared to 1 year ago, ADC has more shares outstanding
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

ADC has an Altman-Z score of 1.45. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.45, ADC belongs to the best of the industry, outperforming 87.90% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that ADC is not too dependend on debt financing.
The Debt to Equity ratio of ADC (0.46) is better than 91.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF N/A
Altman-Z 1.45
ROIC/WACC0.36
WACC7.41%

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.
With a Current ratio value of 0.77, ADC is not doing good in the industry: 72.58% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that ADC may have some problems paying its short term obligations.
ADC has a worse Quick ratio (0.74) than 73.39% of its industry peers.
Industry RankSector Rank
Current Ratio 0.77
Quick Ratio 0.74

6

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%.
ADC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.30% yearly.
ADC shows a strong growth in Revenue. In the last year, 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

The Earnings Per Share is expected to grow by 4.41% on average over the next years.
The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.
EPS Next Y11.91%
EPS Next 2Y5.64%
EPS Next 3Y6.18%
EPS Next 5Y4.41%
Revenue Next Year12.98%
Revenue Next 2Y12.45%
Revenue Next 3Y11.42%
Revenue Next 5Y8.14%

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.

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 35.50, ADC can be considered very expensive at the moment.
ADC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.35. ADC is valued slightly more expensive when compared to this.
ADC is valuated quite expensively with a Price/Forward Earnings ratio of 31.72.
76.61% of the companies in the same industry are more expensive than ADC, based on the Price/Forward Earnings ratio.
ADC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.63.
Industry RankSector Rank
PE 35.5
Fwd PE 31.72

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ADC is valued a bit more expensive than 79.03% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.67

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADC does not grow enough to justify the current Price/Earnings ratio.
ADC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)N/A
EPS Next 2Y5.64%
EPS Next 3Y6.18%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.27%, ADC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.90, ADC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, ADC pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.27%

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 Years10
Div Non Decr Years11

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 2Y5.64%
EPS Next 3Y6.18%

AGREE REALTY CORP

NYSE:ADC (2/23/2024, 7:27:50 PM)

After market: 57.51 0 (0%)

57.51

+0.47 (+0.82%)

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 Cap5.78B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.27%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector Rank
PE 35.5
Fwd PE 31.72
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)2.98
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 Y11.91%
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