AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - NYSE:ADC - US0084921008 - REIT
73.01 USD
+0.14 (+0.19%)
72.51 USD
-0.5 (-0.68%)
Taking everything into account, ADC scores 4 out of 10 in our fundamental rating. ADC was compared to 127 industry peers in the Diversified REITs industry. While ADC belongs to the best of the industry regarding profitability, 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.
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
ADC has a Return On Assets of 1.96%. This is in the better half of the industry: ADC outperforms 64.57% of its industry peers.
The Return On Equity of ADC (3.15%) is comparable to the rest of the industry.
ADC has a Return On Invested Capital (2.80%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADC is in line with the industry average of 3.04%.
The last Return On Invested Capital (2.80%) for ADC is above the 3 year average (2.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 3.15% | ||
| 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
ADC has a Profit Margin of 26.97%. This is amongst the best in the industry. ADC outperforms 81.10% of its industry peers.
ADC's Profit Margin has declined in the last couple of years.
The Operating Margin of ADC (47.89%) is better than 89.76% of its industry peers.
In the last couple of years the Operating Margin of ADC has declined.
ADC has a Gross Margin of 88.01%. This is amongst the best in the industry. ADC outperforms 88.98% 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) | 26.97% | ||
| 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.
The number of shares outstanding for ADC has been increased compared to 1 year ago.
ADC has more shares outstanding than it did 5 years ago.
ADC has a worse debt/assets ratio than last year.
2.2 Solvency
ADC has an Altman-Z score of 1.51. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
ADC has a Altman-Z score of 1.51. This is amongst the best in the industry. ADC outperforms 90.55% of its industry peers.
ADC has a Debt/Equity ratio of 0.57. This is a neutral value indicating ADC is somewhat dependend on debt financing.
ADC's Debt to Equity ratio of 0.57 is amongst the best of the industry. ADC outperforms 87.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC0.37
WACC7.53%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ADC may have some problems paying its short term obligations.
ADC has a Current ratio of 0.74. This is in the lower half of the industry: ADC underperforms 62.20% of its industry peers.
ADC has a Quick Ratio of 0.74. 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 Quick ratio of 0.72. This is in the lower half of the industry: ADC underperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for ADC have decreased by -6.04% in the last year.
The Earnings Per Share has been decreasing by -1.17% on average over the past years.
Looking at the last year, ADC shows a quite strong growth in Revenue. The Revenue has grown by 14.81% in the last year.
Measured over the past years, ADC shows a very strong growth in Revenue. The Revenue has been growing by 26.90% on average per year.
EPS 1Y (TTM)-6.04%
EPS 3Y-2.44%
EPS 5Y-1.17%
EPS Q2Q%7.14%
Revenue 1Y (TTM)14.81%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
3.2 Future
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
The Revenue is expected to grow by 15.94% on average over the next years. This is quite good.
EPS Next Y-1.46%
EPS Next 2Y4.26%
EPS Next 3Y4.03%
EPS Next 5Y5%
Revenue Next Year16.74%
Revenue Next 2Y13.69%
Revenue Next 3Y13.11%
Revenue Next 5Y15.94%
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. Valuation
4.1 Price/Earnings Ratio
ADC is valuated quite expensively with a Price/Earnings ratio of 42.70.
The rest of the industry has a similar Price/Earnings ratio as ADC.
The average S&P500 Price/Earnings ratio is at 26.11. ADC is valued rather expensively when compared to this.
ADC is valuated quite expensively with a Price/Forward Earnings ratio of 36.90.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADC indicates a somewhat cheap valuation: ADC is cheaper than 66.93% of the companies listed in the same industry.
ADC is valuated expensively when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.7 | ||
| Fwd PE | 36.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADC is valued expensively inside the industry as 87.40% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.97 |
4.3 Compensation for Growth
The decent profitability rating of ADC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.26%
EPS Next 3Y4.03%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 4.31%, which is a nice return.
Compared to an average industry Dividend Yield of 6.42, ADC is paying slightly less dividend.
ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
The dividend of ADC is nicely growing with an annual growth rate of 6.62%!
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)6.62%
Div Incr Years12
Div Non Decr Years13
5.3 Sustainability
183.89% 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.
DP183.89%
EPS Next 2Y4.26%
EPS Next 3Y4.03%
73.01
+0.14 (+0.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners116.06%
Inst Owner Change-0.65%
Ins Owners1.33%
Ins Owner Change1.6%
Market Cap8.08B
Revenue(TTM)617.10M
Net Income(TTM)177.93M
Analysts79.2
Price Target83.85 (14.85%)
Short Float %8.31%
Short Ratio8.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP183.89%
Div Incr Years12
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.74%
Min EPS beat(2)-5.91%
Max EPS beat(2)-1.58%
EPS beat(4)0
Avg EPS beat(4)-4.17%
Min EPS beat(4)-5.91%
Max EPS beat(4)-1.58%
EPS beat(8)2
Avg EPS beat(8)-2.24%
EPS beat(12)4
Avg EPS beat(12)-1.82%
EPS beat(16)6
Avg EPS beat(16)-0.75%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)1.63%
Max Revenue beat(2)2.2%
Revenue beat(4)4
Avg Revenue beat(4)1.73%
Min Revenue beat(4)1.32%
Max Revenue beat(4)2.2%
Revenue beat(8)8
Avg Revenue beat(8)1.79%
Revenue beat(12)11
Avg Revenue beat(12)1.53%
Revenue beat(16)13
Avg Revenue beat(16)1.17%
PT rev (1m)0.14%
PT rev (3m)0.48%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-1.89%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.7 | ||
| Fwd PE | 36.9 | ||
| P/S | 12.25 | ||
| P/FCF | N/A | ||
| P/OCF | 16.9 | ||
| P/B | 1.43 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 20.97 |
EPS(TTM)1.71
EY2.34%
EPS(NY)1.98
Fwd EY2.71%
FCF(TTM)-8.01
FCFYN/A
OCF(TTM)4.32
OCFY5.92%
SpS5.96
BVpS51.09
TBVpS42.75
PEG (NY)N/A
PEG (5Y)N/A
Graham Number44.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 3.15% | ||
| ROCE | 3.54% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 3.14% | ||
| OM | 47.89% | ||
| PM (TTM) | 26.97% | ||
| 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 | 5.98 | ||
| Cap/Depr | 612.66% | ||
| Cap/Sales | 206.86% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | 88.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.51 |
F-Score3
WACC7.53%
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-1.46%
EPS Next 2Y4.26%
EPS Next 3Y4.03%
EPS Next 5Y5%
Revenue 1Y (TTM)14.81%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
Revenue Next Year16.74%
Revenue Next 2Y13.69%
Revenue Next 3Y13.11%
Revenue Next 5Y15.94%
EBIT growth 1Y11.11%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year99.63%
EBIT Next 3Y38.43%
EBIT Next 5Y28.18%
FCF growth 1Y18.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.84%
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 of AGREE REALTY CORP (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 7 / 10.
What is the earnings growth outlook for AGREE REALTY CORP?
The Earnings per Share (EPS) of AGREE REALTY CORP (ADC) is expected to decline by -1.46% in the next year.
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 183.89%.