AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
72.47 USD
+0.07 (+0.1%)
ADC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. There are concerns on the financial health of ADC while its profitability can be described as average. While showing a medium growth rate, ADC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ADC was profitable.
ADC had a positive operating cash flow in the past year.
ADC had positive earnings in each of the past 5 years.
Each year in the past 5 years ADC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.96%, ADC is doing good in the industry, outperforming 62.20% of the companies in the same industry.
ADC has a Return On Equity of 3.16%. This is comparable to the rest of the industry: ADC outperforms 55.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.80%, ADC is in line with its industry, outperforming 50.39% of the companies in the same 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 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
With a decent Profit Margin value of 26.96%, ADC is doing good in the industry, outperforming 78.74% 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 89.76% 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 89.76% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADC is destroying value.
The number of shares outstanding for ADC has been increased compared to 1 year ago.
The number of shares outstanding for ADC has been increased compared to 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.
Looking at the Altman-Z score, with a value of 1.48, ADC belongs to the top of the industry, outperforming 90.55% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that ADC is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.57, ADC belongs to the best of the industry, outperforming 86.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC0.37
WACC7.58%
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.
The Current ratio of ADC (0.70) is worse than 68.50% of its industry peers.
A Quick Ratio of 0.70 indicates that ADC may have some problems paying its short term obligations.
ADC has a Quick ratio of 0.70. This is in the lower half of the industry: ADC underperforms 66.14% 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.
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%.
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
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.
ADC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.42% yearly.
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.
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 42.38, the valuation of ADC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ADC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ADC to the average of the S&P500 Index (26.92), we can say ADC is valued expensively.
A Price/Forward Earnings ratio of 36.63 indicates a quite expensive valuation of ADC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADC indicates a somewhat cheap valuation: ADC is cheaper than 67.72% of the companies listed in the same industry.
ADC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.38 | ||
| Fwd PE | 36.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADC is valued expensively inside the industry as 84.25% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.76 |
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 4.34%, which is a nice return.
Compared to an average industry Dividend Yield of 6.43, ADC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, 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
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%
NYSE:ADC (12/29/2025, 12:34:39 PM)
72.47
+0.07 (+0.1%)
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 Cap8.33B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target83.95 (15.84%)
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)0.12%
PT rev (3m)0.25%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.38 | ||
| Fwd PE | 36.63 | ||
| P/S | 12.09 | ||
| P/FCF | N/A | ||
| P/OCF | 17.2 | ||
| P/B | 1.42 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 20.76 |
EPS(TTM)1.71
EY2.36%
EPS(NY)1.98
Fwd EY2.73%
FCF(TTM)-9.45
FCFYN/A
OCF(TTM)4.21
OCFY5.81%
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
WACC7.58%
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 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%.