AGREE REALTY CORP (ADC) Stock Fundamental Analysis
NYSE:ADC - New York Stock Exchange, Inc. - US0084921008 - REIT
ADC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. ADC scores excellent on profitability, but there are concerns on its financial health. 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.
ADC had a positive operating cash flow in the past year.
ADC had positive earnings in each of the past 5 years.
ADC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADC has a Return On Assets of 2.22%. This is in the better half of the industry: ADC outperforms 71.43% of its industry peers.
ADC's Return On Equity of 3.44% is fine compared to the rest of the industry. ADC outperforms 61.11% of its industry peers.
ADC's Return On Invested Capital of 2.89% is in line compared to the rest of the industry. ADC outperforms 57.14% of its industry peers.
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 3.11%.
The last Return On Invested Capital (2.89%) for ADC is above the 3 year average (2.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 3.44% | ||
| ROIC | 2.89% |
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 (30.31%) than 83.33% 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 48.86%, ADC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
ADC's Operating Margin has declined in the last couple of years.
ADC has a Gross Margin of 88.22%. This is amongst the best in the industry. ADC outperforms 90.48% 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 | 48.86% | ||
| PM (TTM) | 30.31% | ||
| GM | 88.22% |
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. 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.
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
ADC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that ADC is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.67, ADC belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that ADC is somewhat dependend on debt financing.
ADC has a Debt to Equity ratio of 0.51. This is amongst the best in the industry. ADC outperforms 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.37
WACC7.89%
2.3 Liquidity
ADC has a Current 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.
The Current ratio of ADC (0.74) is worse than 75.40% of its industry peers.
A Quick Ratio of 0.66 indicates that ADC may have some problems paying its short term obligations.
ADC has a Quick ratio of 0.66. This is in the lower half of the industry: ADC underperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ADC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.30%, which is quite good.
ADC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.30% yearly.
ADC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.80%.
Measured over the past years, ADC shows a very strong growth in Revenue. The Revenue has been growing by 31.42% on average per year.
EPS 1Y (TTM)10.3%
EPS 3Y-2.35%
EPS 5Y-2.3%
EPS Q2Q%13.51%
Revenue 1Y (TTM)17.8%
Revenue growth 3Y29.31%
Revenue growth 5Y31.42%
Sales Q2Q%12.81%
3.2 Future
ADC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.03% yearly.
ADC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.86% yearly.
EPS Next Y12.22%
EPS Next 2Y7%
EPS Next 3Y5.31%
EPS Next 5Y5.03%
Revenue Next Year14.12%
Revenue Next 2Y11.78%
Revenue Next 3Y11.32%
Revenue Next 5Y13.86%
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
A Price/Earnings ratio of 40.20 indicates a quite expensive valuation of ADC.
ADC's Price/Earnings ratio is in line with the industry average.
ADC is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
ADC is valuated quite expensively with a Price/Forward Earnings ratio of 39.45.
ADC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADC is cheaper than 67.46% of the companies in the same industry.
ADC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.2 | ||
| Fwd PE | 39.45 |
4.2 Price Multiples
84.92% of the companies in the same industry are cheaper than ADC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.7 |
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)3.29
PEG (5Y)N/A
EPS Next 2Y7%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 4.21%, which is a nice return.
Compared to an average industry Dividend Yield of 18.51, ADC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
On average, the dividend of ADC grows each year by 8.66%, 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)8.66%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
168.59% 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.
DP168.59%
EPS Next 2Y7%
EPS Next 3Y5.31%
AGREE REALTY CORP
NYSE:ADC (1/21/2025, 8:04:00 PM)
After market: 73.17 0 (0%)73.17
+0.73 (+1.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners106.53%
Inst Owner Change-0.24%
Ins Owners1.38%
Ins Owner Change1.49%
Market Cap7.57B
Analysts81.67
Price Target81.83 (11.84%)
Short Float %11.3%
Short Ratio12.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend2.99
Dividend Growth(5Y)8.66%
DP168.59%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.51%
Min EPS beat(2)-3.61%
Max EPS beat(2)16.63%
EPS beat(4)2
Avg EPS beat(4)1.99%
Min EPS beat(4)-9.39%
Max EPS beat(4)16.63%
EPS beat(8)3
Avg EPS beat(8)-1.46%
EPS beat(12)5
Avg EPS beat(12)-0.97%
EPS beat(16)9
Avg EPS beat(16)1.33%
Revenue beat(2)2
Avg Revenue beat(2)1.75%
Min Revenue beat(2)1.32%
Max Revenue beat(2)2.17%
Revenue beat(4)4
Avg Revenue beat(4)1.73%
Min Revenue beat(4)1.03%
Max Revenue beat(4)2.4%
Revenue beat(8)8
Avg Revenue beat(8)1.67%
Revenue beat(12)10
Avg Revenue beat(12)1.18%
Revenue beat(16)12
Avg Revenue beat(16)1.06%
PT rev (1m)0.95%
PT rev (3m)7.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.2 | ||
| Fwd PE | 39.45 | ||
| P/S | 12.61 | ||
| P/FCF | N/A | ||
| P/OCF | 17.27 | ||
| P/B | 1.43 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 20.7 |
EPS(TTM)1.82
EY2.49%
EPS(NY)1.85
Fwd EY2.53%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)4.24
OCFY5.79%
SpS5.8
BVpS51.14
TBVpS43.05
PEG (NY)3.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 3.44% | ||
| ROCE | 3.66% | ||
| ROIC | 2.89% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 3.25% | ||
| OM | 48.86% | ||
| PM (TTM) | 30.31% | ||
| GM | 88.22% | ||
| FCFM | N/A |
ROA(3y)2.18%
ROA(5y)2.37%
ROE(3y)3.25%
ROE(5y)3.61%
ROIC(3y)2.65%
ROIC(5y)2.76%
ROICexc(3y)2.66%
ROICexc(5y)2.77%
ROICexgc(3y)3.04%
ROICexgc(5y)3.18%
ROCE(3y)3.36%
ROCE(5y)3.49%
ROICexcg growth 3Y-0.83%
ROICexcg growth 5Y-3.4%
ROICexc growth 3Y-0.22%
ROICexc growth 5Y-2.63%
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%
F-Score7
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.45 | ||
| Cap/Depr | 405% | ||
| Cap/Sales | 133.33% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 89.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 1.67 |
F-Score7
WACC7.89%
ROIC/WACC0.37
Cap/Depr(3y)1160.2%
Cap/Depr(5y)1346.7%
Cap/Sales(3y)350.35%
Cap/Sales(5y)396.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.3%
EPS 3Y-2.35%
EPS 5Y-2.3%
EPS Q2Q%13.51%
EPS Next Y12.22%
EPS Next 2Y7%
EPS Next 3Y5.31%
EPS Next 5Y5.03%
Revenue 1Y (TTM)17.8%
Revenue growth 3Y29.31%
Revenue growth 5Y31.42%
Sales Q2Q%12.81%
Revenue Next Year14.12%
Revenue Next 2Y11.78%
Revenue Next 3Y11.32%
Revenue Next 5Y13.86%
EBIT growth 1Y18.89%
EBIT growth 3Y26.21%
EBIT growth 5Y28.1%
EBIT Next Year118.46%
EBIT Next 3Y41.71%
EBIT Next 5Y-18.92%
FCF growth 1Y70.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.22%
OCF growth 3Y39.91%
OCF growth 5Y33.26%