AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
70.51 USD
-0.3 (-0.42%)
70.51 USD
0 (0%)
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. ADC has a medium profitability rating, but doesn't score so well on its financial health evaluation. ADC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ADC had positive earnings in the past year.
In the past year ADC had a positive cash flow from operations.
Each year in the past 5 years ADC has been profitable.
In the past 5 years ADC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.96%, ADC is doing good in the industry, outperforming 62.20% of the companies in the same industry.
With a Return On Equity value of 3.16%, ADC perfoms like the industry average, outperforming 55.91% of the companies in the same industry.
The Return On Invested Capital of ADC (2.80%) 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 3.06%.
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 | 3.16% | ||
| 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
ADC has a Profit Margin of 26.96%. This is in the better half of the industry: ADC outperforms 78.74% of its industry peers.
In the last couple of years the Profit Margin of ADC has declined.
With an excellent Operating Margin value of 47.89%, ADC belongs to the best 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.
With an excellent Gross Margin value of 88.01%, ADC belongs to the best of the industry, outperforming 89.76% 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 | 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.
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
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.
ADC has a Altman-Z score of 1.45. This is amongst the best in the industry. ADC outperforms 90.55% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that ADC is somewhat dependend on debt financing.
The Debt to Equity ratio of ADC (0.57) is better than 86.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC0.37
WACC7.6%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
ADC's Current ratio of 0.70 is on the low side compared to the rest of the industry. ADC is outperformed by 67.72% of its industry peers.
A Quick Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
ADC has a worse Quick ratio (0.70) than 65.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for ADC have decreased by -6.04% in the last year.
Measured over the past years, ADC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.17% on average per year.
The Revenue has grown by 14.67% in the past year. This is quite good.
The Revenue has been growing by 26.90% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, ADC will show a small growth in Earnings Per Share. The EPS will grow by 4.45% on average per year.
ADC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.42% yearly.
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
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
The Price/Earnings ratio is 41.23, which means the current valuation is very expensive for ADC.
ADC's Price/Earnings is on the same level as the industry average.
ADC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 35.64 indicates a quite expensive valuation of ADC.
Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than 69.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, ADC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.23 | ||
| Fwd PE | 35.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADC is valued more expensive than 81.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.44 |
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 3Y4.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.36%, ADC is a good candidate for dividend investing.
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
On average, the dividend of ADC grows each year by 6.62%, which is quite nice.
ADC has paid a dividend for at least 10 years, which is 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)6.62%
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.
ADC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP181.44%
EPS Next 2Y4.26%
EPS Next 3Y4.15%
70.51
-0.3 (-0.42%)
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 Cap8.10B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target83.95 (19.06%)
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 | 41.23 | ||
| Fwd PE | 35.64 | ||
| P/S | 11.77 | ||
| P/FCF | N/A | ||
| P/OCF | 16.74 | ||
| P/B | 1.38 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 20.44 |
EPS(TTM)1.71
EY2.43%
EPS(NY)1.98
Fwd EY2.81%
FCF(TTM)-9.45
FCFYN/A
OCF(TTM)4.21
OCFY5.98%
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 | 1.45 |
F-Score3
WACC7.6%
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 41.23 and the Price/Book (PB) ratio is 1.38.
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%.