AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
71.95 USD
-0.17 (-0.24%)
ADC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. While ADC is still in line with the averages on profitability rating, there are 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.
In the past year ADC had a positive cash flow from operations.
ADC had positive earnings in each of the past 5 years.
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 1.96%, ADC is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
The Return On Equity of ADC (3.16%) is comparable to the rest of the industry.
ADC has a Return On Invested Capital (2.80%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADC is in line with the industry average of 3.06%.
The 3 year average ROIC (2.69%) for ADC is below the current ROIC(2.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 3.16% | ||
| ROIC | 2.8% |
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
The Profit Margin of ADC (26.96%) is better than 78.74% of its industry peers.
In the last couple of years the Profit Margin of ADC has declined.
Looking at the Operating Margin, with a value of 47.89%, ADC belongs to the top of the industry, outperforming 89.76% of the companies in the same industry.
ADC's Operating Margin has declined in the last couple of years.
ADC's Gross Margin of 88.01% is amongst the best of the industry. ADC outperforms 89.76% 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 | 47.89% | ||
| PM (TTM) | 26.96% | ||
| GM | 88.01% |
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
Compared to 5 years ago, ADC has more shares outstanding
Compared to 1 year ago, ADC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that ADC is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.47, ADC belongs to the best of the industry, outperforming 91.34% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that ADC is somewhat dependend on debt financing.
ADC has a better Debt to Equity ratio (0.57) than 86.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.47 |
ROIC/WACC0.37
WACC7.62%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.70, ADC is doing worse than 67.72% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, ADC is doing worse than 65.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
ADC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.04%.
The Earnings Per Share has been decreasing by -1.17% on average over the past years.
The Revenue has grown by 14.67% in the past year. This is quite good.
ADC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.90% yearly.
EPS 1Y (TTM)-6.04%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%7.14%
Revenue 1Y (TTM)14.67%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
3.2 Future
ADC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.45% yearly.
The Revenue is expected to grow by 16.42% on average over the next years. This is quite good.
EPS Next Y-1.3%
EPS Next 2Y4.26%
EPS Next 3Y4.15%
EPS Next 5Y4.45%
Revenue Next Year17.73%
Revenue Next 2Y14.54%
Revenue Next 3Y14.23%
Revenue Next 5Y16.42%
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
ADC is valuated quite expensively with a Price/Earnings ratio of 42.08.
The rest of the industry has a similar Price/Earnings ratio as ADC.
Compared to an average S&P500 Price/Earnings ratio of 26.60, ADC is valued quite expensively.
A Price/Forward Earnings ratio of 36.37 indicates a quite expensive valuation of ADC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADC indicates a somewhat cheap valuation: ADC is cheaper than 67.72% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. ADC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.08 | ||
| Fwd PE | 36.37 |
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 83.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.7 |
4.3 Compensation for Growth
ADC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.26%
EPS Next 3Y4.15%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 4.36%, which is a nice return.
ADC's Dividend Yield is slightly below the industry average, which is at 6.83.
Compared to an average S&P500 Dividend Yield of 1.94, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
5.2 History
The dividend of ADC is nicely growing with an annual growth rate of 6.62%!
ADC has been paying a dividend for at least 10 years, so it has 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 Years12
Div Non Decr Years13
5.3 Sustainability
181.44% 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.
DP181.44%
EPS Next 2Y4.26%
EPS Next 3Y4.15%
NYSE:ADC (1/5/2026, 9:31:07 AM)
71.95
-0.17 (-0.24%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners113.74%
Inst Owner Change0%
Ins Owners1.28%
Ins Owner Change2.23%
Market Cap8.27B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target83.95 (16.68%)
Short Float %8.25%
Short Ratio8.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP181.44%
Div Incr Years12
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.86%
Min EPS beat(2)-5.91%
Max EPS beat(2)-1.81%
EPS beat(4)0
Avg EPS beat(4)-3.72%
Min EPS beat(4)-5.91%
Max EPS beat(4)-1.58%
EPS beat(8)2
Avg EPS beat(8)-0.87%
EPS beat(12)3
Avg EPS beat(12)-2.21%
EPS beat(16)5
Avg EPS beat(16)-1.66%
Revenue beat(2)2
Avg Revenue beat(2)1.81%
Min Revenue beat(2)1.63%
Max Revenue beat(2)1.98%
Revenue beat(4)4
Avg Revenue beat(4)1.9%
Min Revenue beat(4)1.63%
Max Revenue beat(4)2.2%
Revenue beat(8)8
Avg Revenue beat(8)1.81%
Revenue beat(12)12
Avg Revenue beat(12)1.75%
Revenue beat(16)14
Avg Revenue beat(16)1.36%
PT rev (1m)0.12%
PT rev (3m)0.12%
EPS NQ rev (1m)1.88%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.08 | ||
| Fwd PE | 36.37 | ||
| P/S | 12.01 | ||
| P/FCF | N/A | ||
| P/OCF | 17.08 | ||
| P/B | 1.41 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 20.7 |
EPS(TTM)1.71
EY2.38%
EPS(NY)1.98
Fwd EY2.75%
FCF(TTM)-9.45
FCFYN/A
OCF(TTM)4.21
OCFY5.86%
SpS5.99
BVpS51.1
TBVpS42.69
PEG (NY)N/A
PEG (5Y)N/A
Graham Number44.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 3.16% | ||
| ROCE | 3.55% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.81% | ||
| ROICexgc | 3.15% | ||
| OM | 47.89% | ||
| PM (TTM) | 26.96% | ||
| GM | 88.01% | ||
| 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%
ROICexgc growth 3Y-0.04%
ROICexgc 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-Score3
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 675.45% | ||
| Cap/Sales | 227.99% | ||
| Interest Coverage | 2.48 | ||
| Cash Conversion | 86.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.47 |
F-Score3
WACC7.62%
ROIC/WACC0.37
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)-6.04%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%7.14%
EPS Next Y-1.3%
EPS Next 2Y4.26%
EPS Next 3Y4.15%
EPS Next 5Y4.45%
Revenue 1Y (TTM)14.67%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
Revenue Next Year17.73%
Revenue Next 2Y14.54%
Revenue Next 3Y14.23%
Revenue Next 5Y16.42%
EBIT growth 1Y12.4%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year99.2%
EBIT Next 3Y39.32%
EBIT Next 5Y33.59%
FCF growth 1Y4.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.19%
OCF growth 3Y20.6%
OCF growth 5Y27.8%
AGREE REALTY CORP / ADC FAQ
Can you provide the ChartMill fundamental rating for AGREE REALTY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to ADC.
What is the valuation status for ADC stock?
ChartMill assigns a valuation rating of 1 / 10 to AGREE REALTY CORP (ADC). This can be considered as Overvalued.
What is the profitability of ADC stock?
AGREE REALTY CORP (ADC) has a profitability rating of 6 / 10.
What is the valuation of AGREE REALTY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AGREE REALTY CORP (ADC) is 42.08 and the Price/Book (PB) ratio is 1.41.
Can you provide the dividend sustainability for ADC stock?
The dividend rating of AGREE REALTY CORP (ADC) is 6 / 10 and the dividend payout ratio is 181.44%.