AGREE REALTY CORP (ADC)
US0084921008 - REIT
We assign a fundamental rating of 4 out of 10 to ADC. ADC was compared to 130 industry peers in the Diversified REITs industry. While ADC has a great profitability rating, there are quite some concerns on its financial health. 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.
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
ADC has a better Return On Assets (2.22%) than 70.31% of its industry peers.
ADC's Return On Equity of 3.44% is fine compared to the rest of the industry. ADC outperforms 60.16% of its industry peers.
ADC has a Return On Invested Capital (2.89%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ADC is in line with the industry average of 3.08%.
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
With an excellent Profit Margin value of 30.31%, ADC belongs to the best of the industry, outperforming 83.59% of the companies in the same industry.
ADC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 48.86%, ADC belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Operating Margin of ADC has declined.
Looking at the Gross Margin, with a value of 88.22%, ADC belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADC 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.
Compared to 1 year ago, ADC has a worse debt to assets ratio.
2.2 Solvency
ADC has an Altman-Z score of 1.60. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
ADC has a better Altman-Z score (1.60) than 91.41% of its industry peers.
ADC has a Debt/Equity ratio of 0.51. This is a neutral value indicating ADC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, ADC belongs to the top of the industry, outperforming 88.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.6 |
ROIC/WACC0.37
WACC7.81%
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.
ADC has a worse Current ratio (0.74) than 75.00% of its industry peers.
A Quick Ratio of 0.66 indicates that ADC may have some problems paying its short term obligations.
With a Quick ratio value of 0.66, ADC is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.30% over the past year.
The Earnings Per Share has been decreasing by -2.30% on average over the past years.
The Revenue has grown by 17.80% in the past year. This is quite good.
The Revenue has been growing by 31.42% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 5.03% on average over the next years.
The Revenue is expected to grow by 13.86% on average over the next years. This is quite good.
EPS Next Y12.22%
EPS Next 2Y7%
EPS Next 3Y5.31%
EPS Next 5Y5.03%
Revenue Next Year13.27%
Revenue Next 2Y10.95%
Revenue Next 3Y12.21%
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
Based on the Price/Earnings ratio of 38.55, the valuation of ADC can be described as expensive.
ADC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.73. ADC is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 37.84, which means the current valuation is very expensive for ADC.
Based on the Price/Forward Earnings ratio, ADC is valued a bit cheaper than 69.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADC to the average of the S&P500 Index (22.83), we can say ADC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.55 | ||
| Fwd PE | 37.84 |
4.2 Price Multiples
ADC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. ADC is more expensive than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ADC may justify a higher PE ratio.
PEG (NY)3.15
PEG (5Y)N/A
EPS Next 2Y7%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.12%, ADC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 15.68, 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 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
The dividend of ADC is nicely growing with an annual growth rate of 8.66%!
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)8.66%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
ADC pays out 168.59% 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.
DP168.59%
EPS Next 2Y7%
EPS Next 3Y5.31%
AGREE REALTY CORP
NYSE:ADC (12/20/2024, 8:04:00 PM)
After market: 70.17 0 (0%)70.17
+0.73 (+1.05%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.4%
Inst Owner Change9.48%
Ins Owners1.72%
Ins Owner Change-0.04%
Market Cap7.26B
Analysts82.73
Price Target81.06 (15.52%)
Short Float %14.27%
Short Ratio16.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
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)3.17%
PT rev (3m)9.41%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-6.93%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.55 | ||
| Fwd PE | 37.84 | ||
| P/S | 12.1 | ||
| P/FCF | N/A | ||
| P/OCF | 16.56 | ||
| P/B | 1.37 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 20.07 |
EPS(TTM)1.82
EY2.59%
EPS(NY)1.85
Fwd EY2.64%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)4.24
OCFY6.04%
SpS5.8
BVpS51.14
TBVpS43.05
PEG (NY)3.15
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 | 1.6 |
F-Score7
WACC7.81%
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 Year13.27%
Revenue Next 2Y10.95%
Revenue Next 3Y12.21%
Revenue Next 5Y13.86%
EBIT growth 1Y18.89%
EBIT growth 3Y26.21%
EBIT growth 5Y28.1%
EBIT Next Year118.3%
EBIT Next 3Y41.8%
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%