NYSE:ADX

Stock Analysis Report

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Executive Summary

Adams Diversified Equity Fund, Inc. is a publicly owned investment manager. More Details


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has Adams Diversified Equity Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ADX's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

ADX

1.5%

US Capital Markets

-0.4%

US Market


1 Year Return

22.2%

ADX

45.4%

US Capital Markets

36.2%

US Market

Return vs Industry: ADX underperformed the US Capital Markets industry which returned 45.4% over the past year.

Return vs Market: ADX underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

ADXIndustryMarket
7 Day0.5%1.5%-0.4%
30 Day-0.7%3.3%-2.3%
90 Day3.2%14.5%5.0%
1 Year30.4%22.2%49.0%45.4%39.1%36.2%
3 Year51.9%13.3%35.9%25.9%48.4%39.0%
5 Year126.1%42.5%145.9%115.5%116.6%92.4%

Long-Term Price Volatility Vs. Market

How volatile is Adams Diversified Equity Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Adams Diversified Equity Fund undervalued compared to its fair value and its price relative to the market?

43.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADX ($17.67) is trading below our estimate of fair value ($31.09)

Significantly Below Fair Value: ADX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ADX is good value based on its PE Ratio (5.6x) compared to the US Capital Markets industry average (23.4x).

PE vs Market: ADX is good value based on its PE Ratio (5.6x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ADX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ADX is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (19.8x).


Next Steps

Future Growth

How is Adams Diversified Equity Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.5%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Adams Diversified Equity Fund has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Adams Diversified Equity Fund performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADX has a large one-off gain of $329.0M impacting its December 31 2020 financial results.

Growing Profit Margin: ADX's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: ADX's earnings have grown significantly by 23.7% per year over the past 5 years.

Accelerating Growth: ADX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADX had negative earnings growth (-26.6%) over the past year, making it difficult to compare to the Capital Markets industry average (10.4%).


Return on Equity

High ROE: ADX's Return on Equity (15.7%) is considered low.


Next Steps

Financial Health

How is Adams Diversified Equity Fund's financial position?


Financial Position Analysis

Short Term Liabilities: ADX's short term assets ($7.1M) do not cover its short term liabilities ($7.7M).

Long Term Liabilities: ADX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ADX is debt free.

Reducing Debt: ADX had no debt 5 years ago.

Debt Coverage: ADX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ADX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Adams Diversified Equity Fund current dividend yield, its reliability and sustainability?

5.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADX's dividend (5.83%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: ADX's dividend (5.83%) is in the top 25% of dividend payers in the US market (3.64%)


Stability and Growth of Payments

Stable Dividend: ADX's dividend payments have been volatile in the past 10 years.

Growing Dividend: ADX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.7%), ADX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Mark Stoeckle (63 yo)

8.08yrs

Tenure

US$1,084,894

Compensation

Mr. Mark E. Stoeckle has been the President, Chief Executive Officer and Director of Adams Diversified Equity Fund, Inc. since January 21, 2015, February 11, 2013, and February 14, 2013, respectively and a...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.08M) is below average for companies of similar size in the US market ($USD3.62M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Stoeckle
President8.08yrsUS$1.08m0.066%
$ 1.3m
Douglas Swindell
Executive VP6.17yrsUS$712.68k0.041%
$ 809.9k
James Haynie
Executive VP & Senior Portfolio Manager6.17yrsUS$703.21k0.11%
$ 2.2m
Brian Hook
VP, CFO & Treasurer9yrsno data0.026%
$ 517.7k
Janis Kerns
General Counsel2.67yrsno data0.012%
$ 237.8k
Lyn Walther
Director of Shareholder Communicationsno datano datano data
David Schiminger
VP of Research & Senior Equity Analyst15.92yrsno datano data
Steven Crain
VP of Research & Senior Equity Analyst6.75yrsno datano data
Michael Rega
Vice President of Research and Senior Equity Analyst6.5yrsno datano data
Jeffrey Schollaert
Vice President of Research3.92yrsno datano data
Michael Kijesky
Senior Equity Analystno datano datano data
Gregory Buckley
Senior Equity Analystno datano datano data

6.5yrs

Average Tenure

56yo

Average Age

Experienced Management: ADX's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Stoeckle
President8.08yrsUS$1.08m0.066%
$ 1.3m
Craig Smith
Independent Director15.25yrsUS$65.00k0.049%
$ 962.5k
Roger Gale
Independent Director15.25yrsUS$66.50k0.018%
$ 358.2k
Enrique Arzac
Independent Director38.17yrsUS$65.00k0.033%
$ 641.9k
Lauriann Kloppenburg
Independent Director3.42yrsUS$66.50k0.0063%
$ 124.6k
Kathleen McGahran
Independent Non-Executive Chairperson8yrsUS$85.00k0.020%
$ 384.9k
Mary Jammet
Independent Director0.25yrUS$5.42k0.0026%
$ 51.2k
Frederic Escherich
Independent Director15.08yrsUS$68.00k0.043%
$ 839.3k
Kenneth Dale
Independent Director13.17yrsUS$68.00k0.0080%
$ 156.4k

13.2yrs

Average Tenure

68yo

Average Age

Experienced Board: ADX's board of directors are seasoned and experienced ( 13.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ADX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

Adams Diversified Equity Fund, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adams Diversified Equity Fund, Inc.
  • Ticker: ADX
  • Exchange: NYSE
  • Founded: 1840
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$1.962b
  • Shares outstanding: 111.03m
  • Website: https://www.adamsfunds.com

Location

  • Adams Diversified Equity Fund, Inc.
  • 500 East Pratt Street
  • Suite 1300
  • Baltimore
  • Maryland
  • 21202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1973

Biography

Adams Diversified Equity Fund, Inc. is a publicly owned investment manager. The firm provides its services to investment companies. The firm invests in the public equity markets of the United States. It in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 00:15
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.