AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
72.55 USD
+0.52 (+0.72%)
72.55 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ADC. ADC was compared to 124 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 valied quite expensively at the moment, while 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.
- In the past 5 years ADC has always been profitable.
- ADC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ADC has a Return On Assets of 1.96%. This is in the better half of the industry: ADC outperforms 62.40% of its industry peers.
- 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 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 3.05%.
- 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
- Looking at the Profit Margin, with a value of 26.96%, ADC is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
- ADC's Profit Margin has declined in the last couple of years.
- ADC has a better Operating Margin (47.89%) than 90.40% of its industry peers.
- 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 89.60% 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
- 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
- ADC has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.48, we must say that ADC is in the distress zone and has some risk of bankruptcy.
- ADC's Altman-Z score of 1.48 is amongst the best of the industry. ADC outperforms 90.40% 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 has a better Debt to Equity ratio (0.57) than 87.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC0.37
WACC7.66%
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 67.20% 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.
- ADC's Quick ratio of 0.70 is on the low side compared to the rest of the industry. ADC is outperformed by 64.80% of its industry peers.
| 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.
- ADC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.67%.
- 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
- ADC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.45% yearly.
- Based on estimates for the next years, ADC will show a quite strong growth in Revenue. The Revenue will grow by 16.42% on average per year.
EPS Next Y-0.66%
EPS Next 2Y5.79%
EPS Next 3Y5.43%
EPS Next 5Y4.45%
Revenue Next Year18.53%
Revenue Next 2Y14.8%
Revenue Next 3Y13.34%
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.
- 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 42.43 indicates a quite expensive valuation of ADC.
- Compared to the rest of the industry, the Price/Earnings ratio of ADC is on the same level as its industry peers.
- ADC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- ADC is valuated quite expensively with a Price/Forward Earnings ratio of 35.62.
- Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than 68.80% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ADC to the average of the S&P500 Index (25.98), we can say ADC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.43 | ||
| Fwd PE | 35.62 |
4.2 Price Multiples
- ADC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. ADC is more expensive than 83.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.79 |
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 2Y5.79%
EPS Next 3Y5.43%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.14%, ADC is a good candidate for dividend investing.
- ADC's Dividend Yield is comparable with the industry average which is at 6.82.
- Compared to an average S&P500 Dividend Yield of 1.81, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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
- 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 2Y5.79%
EPS Next 3Y5.43%
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 42.43 and the Price/Book (PB) ratio is 1.42.
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%.