AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
74.15 USD
-0.49 (-0.66%)
74.15 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ADC. ADC was compared to 128 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.
Each year in the past 5 years ADC has been profitable.
Each year in the past 5 years ADC had a positive operating cash flow.
1.2 Ratios
ADC's Return On Assets of 1.96% is fine compared to the rest of the industry. ADC outperforms 65.63% of its industry peers.
ADC's Return On Equity of 3.16% is in line compared to the rest of the industry. ADC outperforms 58.59% of its industry peers.
The Return On Invested Capital of ADC (2.80%) is comparable to the rest of the industry.
ADC had an Average Return On Invested Capital over the past 3 years of 2.69%. This 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 82.03% of its industry peers.
In the last couple of years the Profit Margin of ADC has declined.
ADC has a Operating Margin of 47.89%. This is amongst the best in the industry. ADC outperforms 89.84% of its industry peers.
ADC's Operating Margin has declined in the last couple of years.
The Gross Margin of ADC (88.01%) is better than 89.06% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for ADC is higher compared to a year ago.
2.2 Solvency
ADC has an Altman-Z score of 1.52. 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 1.52. This is amongst the best in the industry. ADC outperforms 90.63% of its industry peers.
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 86.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.37
WACC7.57%
2.3 Liquidity
ADC has a Current Ratio of 0.70. 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's Current ratio of 0.70 is on the low side compared to the rest of the industry. ADC is outperformed by 69.53% of its industry peers.
ADC has a Quick Ratio of 0.70. This is a bad value and indicates that ADC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.70, ADC is doing worse than 67.19% of the companies in the same industry.
| 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.
ADC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.17% yearly.
Looking at the last year, ADC shows a quite strong growth in Revenue. The Revenue has grown by 14.67% 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)14.67%
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-1.14%
EPS Next 2Y4.43%
EPS Next 3Y4.05%
EPS Next 5Y4.45%
Revenue Next Year17.09%
Revenue Next 2Y14.06%
Revenue Next 3Y13.76%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 43.36 indicates a quite expensive valuation of ADC.
The rest of the industry has a similar Price/Earnings ratio as ADC.
Compared to an average S&P500 Price/Earnings ratio of 26.15, ADC is valued quite expensively.
ADC is valuated quite expensively with a Price/Forward Earnings ratio of 37.36.
Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than 67.19% of the companies in the same industry.
ADC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.36 | ||
| Fwd PE | 37.36 |
4.2 Price Multiples
85.16% 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 | 21.22 |
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 2Y4.43%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 4.18%, which is a nice return.
ADC's Dividend Yield is slightly below the industry average, which is at 6.34.
Compared to an average S&P500 Dividend Yield of 2.32, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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 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
ADC pays out 181.44% of its income as dividend. 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 2Y4.43%
EPS Next 3Y4.05%
74.15
-0.49 (-0.66%)
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-0.38%
Ins Owners1.33%
Ins Owner Change1.49%
Market Cap8.52B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target83.85 (13.08%)
Short Float %8.31%
Short Ratio9.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP181.44%
Div Incr Years12
Div Non Decr Years13
Ex-Date
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%
PT rev (3m)0.4%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.36 | ||
| Fwd PE | 37.36 | ||
| P/S | 12.38 | ||
| P/FCF | N/A | ||
| P/OCF | 17.6 | ||
| P/B | 1.45 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 21.22 |
EPS(TTM)1.71
EY2.31%
EPS(NY)1.98
Fwd EY2.68%
FCF(TTM)-9.45
FCFYN/A
OCF(TTM)4.21
OCFY5.68%
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 | 1.52 |
F-Score3
WACC7.57%
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-1.14%
EPS Next 2Y4.43%
EPS Next 3Y4.05%
EPS Next 5Y4.45%
Revenue 1Y (TTM)14.67%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
Revenue Next Year17.09%
Revenue Next 2Y14.06%
Revenue Next 3Y13.76%
Revenue Next 5Y16.42%
EBIT growth 1Y12.4%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year99.63%
EBIT Next 3Y38.43%
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 5 / 10 to ADC.
What is the valuation status of AGREE REALTY CORP (ADC) stock?
ChartMill assigns a valuation rating of 2 / 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 -1.14% 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 181.44%.