AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
72.31 USD
+0.9 (+1.26%)
72.56 USD
+0.25 (+0.35%)
Overall ADC gets a fundamental rating of 4 out of 10. We evaluated ADC against 126 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.
- In the past year ADC had a positive cash flow from operations.
- Each year in the past 5 years ADC has 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 62.70% 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.
- 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 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 79.37% of the companies in the same industry.
- ADC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 47.89%, ADC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
- In the last couple of years the Operating Margin of ADC has declined.
- ADC has a better Gross Margin (88.01%) than 89.68% 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.
- 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.
- ADC has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.46, we must say that ADC is in the distress zone and has some risk of bankruptcy.
- ADC's Altman-Z score of 1.46 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.
- The Debt to Equity ratio of ADC (0.57) is better than 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACC0.37
WACC7.61%
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 67.46% 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 65.08% of its industry peers.
| 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.
- 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-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
- 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
- The Price/Earnings ratio is 42.29, which means the current valuation is very expensive for ADC.
- ADC's Price/Earnings is on the same level as the industry average.
- ADC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.33.
- Based on the Price/Forward Earnings ratio of 36.55, the valuation of ADC can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADC indicates a somewhat cheap valuation: ADC is cheaper than 69.05% of the companies listed in the same industry.
- ADC is valuated expensively when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.29 | ||
| Fwd PE | 36.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADC indicates a rather expensive valuation: ADC more expensive than 82.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.56 |
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 3.01%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 6.86, ADC's dividend is way lower than its industry peers. On top of this 81.75% of the companies listed in the same industry pay a better dividend than ADC!
- ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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
- 181.44% of the earnings are spent on dividend by ADC. This is not a sustainable payout ratio.
- The dividend of ADC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP181.44%
EPS Next 2Y4.26%
EPS Next 3Y4.15%
72.31
+0.9 (+1.26%)
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)02-09 2026-02-09/amc
Inst Owners113.74%
Inst Owner Change0.03%
Ins Owners1.28%
Ins Owner Change2.23%
Market Cap8.31B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target83.95 (16.1%)
Short Float %8.25%
Short Ratio8.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP181.44%
Div Incr Years12
Div Non Decr Years13
Ex-DateN/A
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 | 42.29 | ||
| Fwd PE | 36.55 | ||
| P/S | 12.07 | ||
| P/FCF | N/A | ||
| P/OCF | 17.16 | ||
| P/B | 1.42 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 20.56 |
EPS(TTM)1.71
EY2.36%
EPS(NY)1.98
Fwd EY2.74%
FCF(TTM)-9.45
FCFYN/A
OCF(TTM)4.21
OCFY5.83%
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 | 1.46 |
F-Score3
WACC7.61%
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 42.29 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 5 / 10 and the dividend payout ratio is 181.44%.