NYSE:ADC

Stock Analysis Report

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Market Cap

US$5.2b

Last Updated

2021/08/03 00:34 UTC

Data Sources

Company Financials +

Executive Summary

Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. More Details


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

How has Agree Realty's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.01%

ADC

-0.1%

US REITs

-0.4%

US Market


1 Year Return

11.9%

ADC

31.8%

US REITs

34.4%

US Market

Return vs Industry: ADC underperformed the US REITs industry which returned 30.6% over the past year.

Return vs Market: ADC underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

ADCIndustryMarket
7 Day0.01%-0.1%-0.4%
30 Day5.4%3.1%-0.4%
90 Day5.3%8.0%4.0%
1 Year16.6%11.9%36.2%31.8%36.5%34.4%
3 Year55.2%38.5%44.4%28.2%62.0%51.9%
5 Year87.3%53.9%52.5%23.1%121.8%97.2%

Long-Term Price Volatility Vs. Market

How volatile is Agree Realty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Agree Realty undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADC ($74.76) is trading below our estimate of fair value ($173.2)

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


Price To Earnings Ratio

PE vs Industry: ADC is good value based on its PE Ratio (45.6x) compared to the US REITs industry average (46.7x).

PE vs Market: ADC is poor value based on its PE Ratio (45.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ADC is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: ADC is good value based on its PB Ratio (1.6x) compared to the US REITs industry average (1.9x).


Future Growth

How is Agree Realty forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADC's forecast earnings growth (19.2% per year) is above the savings rate (2%).

Earnings vs Market: ADC's earnings (19.2% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: ADC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ADC's revenue (17.2% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: ADC's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADC's Return on Equity is forecast to be low in 3 years time (4.1%).


Past Performance

How has Agree Realty performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADC has high quality earnings.

Growing Profit Margin: ADC's current net profit margins (32.8%) are lower than last year (41.8%).


Past Earnings Growth Analysis

Earnings Trend: ADC's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: ADC's earnings growth over the past year (8.7%) is below its 5-year average (17.1% per year).

Earnings vs Industry: ADC earnings growth over the past year (8.7%) exceeded the REITs industry -9.1%.


Return on Equity

High ROE: ADC's Return on Equity (3.1%) is considered low.


Financial Health

How is Agree Realty's financial position?


Financial Position Analysis

Short Term Liabilities: ADC's short term assets ($236.5M) exceed its short term liabilities ($59.7M).

Long Term Liabilities: ADC's short term assets ($236.5M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: ADC's debt to equity ratio (49.1%) is considered high.

Reducing Debt: ADC's debt to equity ratio has reduced from 70.8% to 49.1% over the past 5 years.

Debt Coverage: ADC's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: ADC's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

What is Agree Realty current dividend yield, its reliability and sustainability?

3.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADC's dividend (3.48%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ADC's dividend (3.48%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (97.6%), ADC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADC's dividends in 3 years are forecast to be covered by earnings (68.9% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Joey Agree (42 yo)

8.58yrs

Tenure

US$7,285,613

Compensation

Mr. Joel N. Agree, also known as Joey, has been the Chief Executive Officer at Agree Realty Corporation since January 8, 2013 and its President and Director since June 8, 2009. Mr. Agree served as the Chie...


CEO Compensation Analysis

Compensation vs Market: Joey's total compensation ($USD7.29M) is about average for companies of similar size in the US market ($USD6.49M).

Compensation vs Earnings: Joey's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ADC's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: ADC's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 27.9%.


Top Shareholders

Company Information

Agree Realty Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Agree Realty Corporation
  • Ticker: ADC
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$5.165b
  • Market Cap: US$5.139b
  • Shares outstanding: 69.08m
  • Website: https://www.agreerealty.com

Number of Employees


Location

  • Agree Realty Corporation
  • 70 East Long Lake Road
  • Bloomfield Hills
  • Michigan
  • 48304
  • United States

Listings


Biography

Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. As of September ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 00:34
End of Day Share Price2021/08/02 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.