AGREE REALTY CORP (ADC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADC - US0084921008 - REIT
72.1 USD
-0.27 (-0.37%)
72.1 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ADC. ADC was compared to 128 industry peers in the Diversified REITs industry. While ADC is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
The Return On Assets of ADC (1.96%) is better than 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.
ADC had an Average Return On Invested Capital over the past 3 years of 2.69%. This is in line with the industry average of 3.05%.
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
ADC's Profit Margin of 26.96% is fine compared to the rest of the industry. ADC outperforms 78.91% of its industry peers.
ADC's Profit Margin has declined in the last couple of years.
ADC's Operating Margin of 47.89% is amongst the best of the industry. ADC outperforms 89.84% 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 89.84% 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
Compared to 5 years ago, ADC has more shares outstanding
ADC has a worse debt/assets ratio than last year.
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.
ADC has a better Altman-Z score (1.48) than 89.84% of its industry peers.
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
WACC7.56%
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.
ADC's Current ratio of 0.70 is on the low side compared to the rest of the industry. ADC is outperformed by 68.75% 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's Quick ratio of 0.70 is on the low side compared to the rest of the industry. ADC is outperformed by 66.41% 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.
The Earnings Per Share has been decreasing by -1.17% on average over the past years.
ADC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.67%.
Measured over the past years, ADC shows a very strong growth in Revenue. The Revenue has been growing by 26.90% on average per year.
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.
Based on estimates for the next years, ADC will show a quite strong growth in Revenue. The Revenue will grow by 16.42% on average per year.
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
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
With a Price/Earnings ratio of 42.16, ADC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ADC.
ADC is valuated expensively when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.44 indicates a quite expensive valuation of ADC.
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 23.83. ADC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.16 | ||
| Fwd PE | 36.44 |
4.2 Price Multiples
83.59% 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 | 20.76 |
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
With a Yearly Dividend Yield of 4.41%, ADC is a good candidate for dividend investing.
ADC's Dividend Yield is slightly below the industry average, which is at 6.20.
ADC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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
181.44% of the earnings are spent on dividend by ADC. 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%
72.1
-0.27 (-0.37%)
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 Cap8.29B
Revenue(TTM)688.64M
Net Income(TTM)185.67M
Analysts79.2
Price Target84.15 (16.71%)
Short Float %9.04%
Short Ratio9.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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)-0.27%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.16 | ||
| Fwd PE | 36.44 | ||
| P/S | 12.03 | ||
| P/FCF | N/A | ||
| P/OCF | 17.11 | ||
| 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
OCFY5.84%
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
WACC7.56%
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%.