AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
73.19 USD
+1.18 (+1.64%)
73.19 USD
0 (0%)
Taking everything into account, ADC scores 4 out of 10 in our fundamental rating. ADC was compared to 126 industry peers in the Diversified REITs industry. There are concerns on the financial health of ADC while its profitability can be described as average. 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.
- 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 62.70% of its industry peers.
- ADC's Return On Equity of 3.16% is in line compared to the rest of the industry. ADC outperforms 56.35% of its industry peers.
- ADC has a Return On Invested Capital of 2.80%. This is comparable to the rest of the industry: ADC outperforms 51.59% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ADC is in line with the industry average of 3.06%.
- 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
- The Profit Margin of ADC (26.96%) is better than 79.37% of its industry peers.
- ADC's Profit Margin has declined in the last couple of years.
- The Operating Margin of ADC (47.89%) is better than 90.48% of its industry peers.
- In the last couple of years the Operating Margin of ADC has declined.
- The Gross Margin of ADC (88.01%) is better than 89.68% 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 | 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.
- Compared to 1 year ago, ADC has more shares outstanding
- The number of shares outstanding for ADC has been increased compared to 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 1.47. This is a bad value and indicates that ADC is not financially healthy and even has some risk of bankruptcy.
- ADC's Altman-Z score of 1.47 is amongst the best of the industry. ADC outperforms 90.48% of its industry peers.
- A Debt/Equity ratio of 0.57 indicates that ADC is somewhat dependend on debt financing.
- ADC has a Debt to Equity ratio of 0.57. This is amongst the best in the industry. ADC outperforms 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.47 |
ROIC/WACC0.37
WACC7.67%
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.
- With a Current ratio value of 0.70, ADC is not doing good in the industry: 67.46% of the companies in the same industry are doing better.
- A Quick Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
- ADC has a worse Quick ratio (0.70) than 65.08% 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%.
- ADC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.17% yearly.
- The Revenue has grown by 14.67% in the past year. This is quite good.
- The Revenue has been growing by 26.90% on average over the past years. This is a very strong growth!
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.
- The Revenue is expected to grow by 16.42% on average over the next years. This is quite good.
EPS Next Y-1.3%
EPS Next 2Y4.26%
EPS Next 3Y4.15%
EPS Next 5Y4.45%
Revenue Next Year17.73%
Revenue Next 2Y14.54%
Revenue Next 3Y14.23%
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
- With a Price/Earnings ratio of 42.80, ADC can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as ADC.
- When comparing the Price/Earnings ratio of ADC to the average of the S&P500 Index (27.47), we can say ADC is valued expensively.
- The Price/Forward Earnings ratio is 37.00, which means the current valuation is very expensive for ADC.
- 69.05% of the companies in the same industry are more expensive than ADC, based on the Price/Forward Earnings ratio.
- ADC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.8 | ||
| Fwd PE | 37 |
4.2 Price Multiples
- 82.54% 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 | 20.68 |
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 2Y4.26%
EPS Next 3Y4.15%
5. Dividend
5.1 Amount
- ADC has a Yearly Dividend Yield of 4.37%, which is a nice return.
- With a Dividend Yield of 4.37, ADC pays less dividend than the industry average, which is at 6.61. 81.75% of the companies listed in the same industry pay a better dividend than ADC!
- Compared to an average S&P500 Dividend Yield of 1.87, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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 2Y4.26%
EPS Next 3Y4.15%
73.19
+1.18 (+1.64%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners113.74%
Inst Owner Change0.03%
Ins Owners1.28%
Ins Owner Change2.23%
Market Cap8.41B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target83.73 (14.4%)
Short Float %8.25%
Short Ratio8.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP181.44%
Div Incr Years12
Div Non Decr Years13
Ex-Date01-30 2026-01-30 (0.262)
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)-0.24%
PT rev (3m)0.12%
EPS NQ rev (1m)1.88%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.8 | ||
| Fwd PE | 37 | ||
| P/S | 12.21 | ||
| P/FCF | N/A | ||
| P/OCF | 17.37 | ||
| P/B | 1.43 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 20.68 |
EPS(TTM)1.71
EY2.34%
EPS(NY)1.98
Fwd EY2.7%
FCF(TTM)-9.45
FCFYN/A
OCF(TTM)4.21
OCFY5.76%
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 | 1.47 |
F-Score3
WACC7.67%
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-1.3%
EPS Next 2Y4.26%
EPS Next 3Y4.15%
EPS Next 5Y4.45%
Revenue 1Y (TTM)14.67%
Revenue growth 3Y22.06%
Revenue growth 5Y26.9%
Sales Q2Q%18.72%
Revenue Next Year17.73%
Revenue Next 2Y14.54%
Revenue Next 3Y14.23%
Revenue Next 5Y16.42%
EBIT growth 1Y12.4%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year99.2%
EBIT Next 3Y39.32%
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 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 42.8 and the Price/Book (PB) ratio is 1.43.
Can you provide the dividend sustainability for ADC stock?
The dividend rating of AGREE REALTY CORP (ADC) is 5 / 10 and the dividend payout ratio is 181.44%.