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ADX

Adams Diversified Equity FundNYSE:ADX Stock Report

Last Price

US$19.12

Market Cap

US$2.1b

7D

0.3%

1Y

9.9%

Updated

16 Jan, 2022

Data

Company Financials
ADX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends4/6

ADX Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Adams Diversified Equity Fund
Historical stock prices
Current Share PriceUS$19.12
52 Week HighUS$22.33
52 Week LowUS$17.03
Beta0.99
1 Month Change1.59%
3 Month Change-7.05%
1 Year Change9.89%
3 Year Change40.07%
5 Year Change47.08%
Change since IPO79.25%

Recent News & Updates

Nov 01

ADX: Year-End "Bonus" Coming Up

ADX runs a rather plain portfolio, which is precisely what some investors might find appealing. The fund's discount is quite appealing at this time, although there aren't any catalysts to close it at this time. This year's year-end special distribution could be significantly higher than last year's based on the earnings over the previous nine months.

Sep 06

ADX: Massive Q4 Dividend, On Sale, Despite Naysayers

If you like big steady income, this CEF has been paying dividends for over 80 years, and it guarantees at least a 6% distribution each year. The big Q4 dividend is coming up, and it's on sale - currently trading at a wide discount to NAV. Despite the naysayers, this fund has distinct total return advantages versus an S&P 500 index fund, including the big 6%+ annual yield.

Aug 09

ADX: A FAAMG Heavy Portfolio At A 14% Discount

ADX, a domestic equity CEF, is among the oldest closed-end funds having been in existence since 1929. The fund's portfolio is heavily weighted to the tech giants that top the S&P 500: MSFT, AAPL, AMZN, GOOGL and FB. These comprise about a quarter of its portfolio. The fund's -14% discount, also its average discount over the last five years, makes it an alpha machine. With that consistent -14% discount on an NAV that has matched the domestic equity market (SPY), the fund has been outperforming the market over the last five years.

Shareholder Returns

ADXUS Capital MarketsUS Market
7D0.3%-1.6%-0.5%
1Y9.9%30.2%13.7%

Return vs Industry: ADX underperformed the US Capital Markets industry which returned 30.2% over the past year.

Return vs Market: ADX underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is ADX's price volatile compared to industry and market?
ADX volatility
ADX Average Weekly Movement4.2%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: ADX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ADX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1840n/aMark Stoecklehttps://www.adamsfunds.com

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.

Adams Diversified Equity Fund Fundamentals Summary

How do Adams Diversified Equity Fund's earnings and revenue compare to its market cap?
ADX fundamental statistics
Market CapUS$2.12b
Earnings (TTM)US$723.08m
Revenue (TTM)US$32.96m

2.9x

P/E Ratio

64.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADX income statement (TTM)
RevenueUS$32.96m
Cost of RevenueUS$0
Gross ProfitUS$32.96m
Expenses-US$690.12m
EarningsUS$723.08m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.51
Gross Margin100.00%
Net Profit Margin2,193.79%
Debt/Equity Ratio0.0%

How did ADX perform over the long term?

See historical performance and comparison

Dividends

15.6%

Current Dividend Yield

16%

Payout Ratio

Valuation

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

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADX ($19.12) is trading below our estimate of fair value ($36.75)

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 (2.9x) compared to the US Capital Markets industry average (15.9x).

PE vs Market: ADX is good value based on its PE Ratio (2.9x) compared to the US market (17.4x).


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 (0.8x) compared to the US Capital Markets industry average (42.4x).


Future Growth

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

3.7%

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.


Past Performance

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

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADX has a large one-off gain of $707.0M impacting its June 30 2021 financial results.

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


Past Earnings Growth Analysis

Earnings Trend: ADX has become profitable over the past 5 years, growing earnings by 26.5% per year.

Accelerating Growth: ADX's earnings growth over the past year (470.5%) exceeds its 5-year average (26.5% per year).

Earnings vs Industry: ADX earnings growth over the past year (470.5%) exceeded the Capital Markets industry 86.4%.


Return on Equity

High ROE: ADX's Return on Equity (28.4%) is considered high.


Financial Health

How is Adams Diversified Equity Fund's financial position?


Financial Position Analysis

Short Term Liabilities: ADX's short term assets ($50.9M) do not cover its short term liabilities ($53.1M).

Long Term Liabilities: ADX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ADX is debt free.

Reducing Debt: ADX has not had any debt for past 5 years.

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


Dividend

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

15.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADX's dividend (15.59%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ADX's dividend (15.59%) is in the top 25% of dividend payers in the US market (3.44%)


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 low payout ratio (15.8%), 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?

7.3yrs

Average management tenure


CEO

Mark Stoeckle (64 yo)

8.92yrs

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

Experienced Management: ADX's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: ADX's board of directors are seasoned and experienced ( 15 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 2.1%.


Top Shareholders

Company Information

Adams Diversified Equity Fund, Inc.'s 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
  • Implied Market Cap: US$2.123b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:01
End of Day Share Price2022/01/14 00:00
Earnings2021/06/30
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.