AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
72.22 USD
-0.18 (-0.25%)
We assign a fundamental rating of 4 out of 10 to ADC. ADC was compared to 128 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADC was profitable.
In the past year ADC had a positive cash flow from operations.
ADC had positive earnings in each of the past 5 years.
ADC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADC's Return On Assets of 1.96% is fine compared to the rest of the industry. ADC outperforms 62.50% of its industry peers.
ADC's Return On Equity of 3.16% is in line compared to the rest of the industry. ADC outperforms 55.47% 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 50.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADC is in line with the industry average of 3.05%.
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
With a decent Profit Margin value of 26.96%, ADC is doing good in the industry, outperforming 78.91% of the companies in the same industry.
In the last couple of years the Profit Margin of ADC has declined.
With an excellent Operating Margin value of 47.89%, ADC belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
ADC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 88.01%, ADC belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
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.
Compared to 5 years ago, ADC has more shares outstanding
The debt/assets ratio for ADC is higher compared to a year ago.
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.
With an excellent Altman-Z score value of 1.48, ADC belongs to the best of the industry, outperforming 90.63% 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 86.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC0.37
WACC7.59%
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.
Looking at the Current ratio, with a value of 0.70, ADC is doing worse than 68.75% of the companies in the same industry.
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.
The Quick ratio of ADC (0.70) is worse than 66.41% 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.
The Revenue has grown by 14.67% in the past year. This is quite good.
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
Based on estimates for the next years, ADC will show a small growth in Earnings Per Share. The EPS will grow by 4.45% on average per year.
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 Year17.26%
Revenue Next 2Y14.24%
Revenue Next 3Y14.11%
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.
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 42.23, the valuation of ADC can be described as expensive.
ADC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.59. ADC is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 36.51, 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 67.97% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.03. ADC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.23 | ||
| Fwd PE | 36.51 |
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 | 20.76 |
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 2Y4.26%
EPS Next 3Y4.15%
5. Dividend
5.1 Amount
ADC has a Yearly Dividend Yield of 4.34%, which is a nice return.
ADC's Dividend Yield is slightly below the industry average, which is at 6.33.
Compared to an average S&P500 Dividend Yield of 1.88, ADC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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 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
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%
NYSE:ADC (12/26/2025, 12:17:56 PM)
72.22
-0.18 (-0.25%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners113.79%
Inst Owner Change-0.38%
Ins Owners1.28%
Ins Owner Change1.47%
Market Cap8.30B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target84.15 (16.52%)
Short Float %9.04%
Short Ratio9.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend2.99
Dividend Growth(5Y)6.62%
DP181.44%
Div Incr Years12
Div Non Decr Years13
Ex-Date
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)0.35%
PT rev (3m)0.49%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.23 | ||
| Fwd PE | 36.51 | ||
| P/S | 12.05 | ||
| P/FCF | N/A | ||
| P/OCF | 17.14 | ||
| P/B | 1.41 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 20.76 |
EPS(TTM)1.71
EY2.37%
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 | 1.48 |
F-Score3
WACC7.59%
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 Year17.26%
Revenue Next 2Y14.24%
Revenue Next 3Y14.11%
Revenue Next 5Y16.42%
EBIT growth 1Y12.4%
EBIT growth 3Y18.97%
EBIT growth 5Y23.75%
EBIT Next Year99.69%
EBIT Next 3Y38.96%
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 of AGREE REALTY CORP (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 earnings growth outlook for AGREE REALTY CORP?
The Earnings per Share (EPS) of AGREE REALTY CORP (ADC) is expected to decline by -1.3% in the next year.
How sustainable is the dividend of AGREE REALTY CORP (ADC) stock?
The dividend rating of AGREE REALTY CORP (ADC) is 6 / 10 and the dividend payout ratio is 181.44%.