AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
72.73 USD
+0.18 (+0.25%)
ADC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
- In the past year ADC was profitable.
- 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 has a Return On Assets of 1.96%. This is in the better half of the industry: ADC outperforms 62.90% of its industry peers.
- Looking at the Return On Equity, with a value of 3.16%, ADC is in line with its industry, outperforming 56.45% of the companies in the same industry.
- The Return On Invested Capital of ADC (2.80%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ADC is in line with the industry average of 3.05%.
- 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
- Looking at the Profit Margin, with a value of 26.96%, ADC is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
- In the last couple of years the Profit Margin of ADC has declined.
- The Operating Margin of ADC (47.89%) is better than 90.32% of its industry peers.
- In the last couple of years the Operating Margin of ADC has declined.
- ADC's Gross Margin of 88.01% is amongst the best of the industry. ADC outperforms 89.52% 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
- ADC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ADC has more shares outstanding than it did 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 1.48. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.48, ADC belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- 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 87.10% 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 66.94% 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 has a worse Quick ratio (0.70) than 64.52% 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%.
- 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.
- ADC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.67%.
- ADC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.90% yearly.
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
- The Earnings Per Share is expected to grow by 4.45% on average over the next years.
- The Revenue is expected to grow by 16.42% on average over the next years. This is quite good.
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
- 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 42.53 indicates a quite expensive valuation of ADC.
- ADC's Price/Earnings ratio is in line with the industry average.
- ADC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 35.71, the valuation of ADC can be described as expensive.
- Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than the industry average as 68.55% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ADC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.53 | ||
| Fwd PE | 35.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADC is valued more expensive than 83.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.79 |
4.3 Compensation for Growth
- ADC has a very decent profitability rating, which 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.
- Compared to an average industry Dividend Yield of 6.82, ADC has a dividend in line with its industry peers.
- ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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 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 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 42.53 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%.