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ADC

Agree RealtyNYSE:ADC Stock Report

Market Cap

US$4.8b

7D

-0.8%

1Y

4.9%

Updated

26 Nov, 2021

Data

Company Financials +
ADC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends5/6

ADC Stock Overview

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.

Agree Realty Competitors

Realty Income

NYSE:O

US$39.3b

National Retail Properties

NYSE:NNN

US$8.0b

Spirit Realty Capital

NYSE:SRC

US$5.6b

Getty Realty

NYSE:GTY

US$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Agree Realty
Historical stock prices
Current Share PriceUS$69.10
52 Week HighUS$75.95
52 Week LowUS$61.27
Beta0.40
1 Month Change-2.81%
3 Month Change-6.56%
1 Year Change4.89%
3 Year Change16.00%
5 Year Change54.79%
Change since IPO254.36%

Recent News & Updates

Nov 21

If You Like Fungible Rectangles, You Will Love Agree Realty

Joey Agree told me that he "likes rectangles". He said that Agree Realty is a "real estate company at its core" and he "likes fungible rectangles with market rents”. Let's explore the rectangle story in greater detail.

Oct 23

Agree Realty: An Investment-Grade REIT With A Strong Outlook

ADC is a net lease, retail REIT with a history of rising dividends. Net lease REITs have risen sharply as the market quells uncertainties stemming from rising rates and the lasting pandemic impact. We dive into Agree Realty and see how the REIT stacks up against fierce competition in the net lease sector.

Shareholder Returns

ADCUS REITsUS Market
7D-0.8%-1.4%-2.7%
1Y4.9%28.4%21.3%

Return vs Industry: ADC underperformed the US REITs industry which returned 28.4% over the past year.

Return vs Market: ADC underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is ADC's price volatile compared to industry and market?
ADC volatility
ADC Average Weekly Movement2.3%
REITs Industry Average Movement3.4%
Market Average Movement5.9%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.2%

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.

About the Company

FoundedEmployeesCEOWebsite
197149Joey Agreehttps://www.agreerealty.com

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 30, 2020, the Company owned and operated a portfolio of 1,027 properties, located in 45 states and containing approximately 21.0 million square feet of gross leasable area. The Company's common stock is listed on the New York Stock Exchange under the symbol "ADC".

Agree Realty Fundamentals Summary

How do Agree Realty's earnings and revenue compare to its market cap?
ADC fundamental statistics
Market CapUS$4.83b
Earnings (TTM)US$112.11m
Revenue (TTM)US$319.33m

43.1x

P/E Ratio

15.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADC income statement (TTM)
RevenueUS$319.33m
Cost of RevenueUS$39.31m
Gross ProfitUS$280.02m
ExpensesUS$167.92m
EarningsUS$112.11m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.60
Gross Margin87.69%
Net Profit Margin35.11%
Debt/Equity Ratio45.8%

How did ADC perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

96%

Payout Ratio

Does ADC pay a reliable dividends?

See ADC dividend history and benchmarks
When do you need to buy ADC by to receive an upcoming dividend?
Agree Realty dividend dates
Ex Dividend DateNov 29 2021
Dividend Pay DateDec 14 2021
Days until Ex dividend1 day
Days until Dividend pay date16 days

Does ADC pay a reliable dividends?

See ADC dividend history and benchmarks

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 ($69.1) is trading below our estimate of fair value ($248.72)

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 (43.1x) compared to the US REITs industry average (46.1x).

PE vs Market: ADC is poor value based on its PE Ratio (43.1x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: ADC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ADC is good value based on its PB Ratio (1.5x) 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 7 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADC's forecast earnings growth (21.5% per year) is above the savings rate (2%).

Earnings vs Market: ADC's earnings (21.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ADC's revenue (19.8% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: ADC's revenue (19.8% 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 (3.8%).


Past Performance

How has Agree Realty performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADC has high quality earnings.

Growing Profit Margin: ADC's current net profit margins (35.1%) are lower than last year (39.3%).


Past Earnings Growth Analysis

Earnings Trend: ADC's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: ADC's earnings growth over the past year (24.6%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: ADC earnings growth over the past year (24.6%) underperformed the REITs industry 29.4%.


Return on Equity

High ROE: ADC's Return on Equity (3.4%) is considered low.


Financial Health

How is Agree Realty's financial position?


Financial Position Analysis

Short Term Liabilities: ADC's short term assets ($163.3M) exceed its short term liabilities ($70.6M).

Long Term Liabilities: ADC's short term assets ($163.3M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: ADC's net debt to equity ratio (43%) is considered high.

Reducing Debt: ADC's debt to equity ratio has reduced from 76.5% to 45.8% over the past 5 years.

Debt Coverage: ADC's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: ADC's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

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

3.94%

Current Dividend Yield


Upcoming Dividend Payment

TodayNov 27 2021Ex Dividend DateNov 29 2021Dividend Pay DateDec 14 202115 days from Ex DividendBuy in the next 1 day to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ADC's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ADC's dividend (3.94%) is in the top 25% of dividend payers in the US market (3.58%)


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 (95.6%), 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 (67.3% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Joey Agree (42 yo)

8.83yrs

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 ($USD7.29M) is about average for companies of similar size in the US market ($USD6.24M).

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 (2.7 years average tenure).


Board Members

Experienced Board: ADC's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ADC 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 26%.


Top Shareholders

Company Information

Agree Realty Corporation's 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$4.834b
  • Market Cap: US$4.810b
  • Shares outstanding: 69.95m
  • Website: https://www.agreerealty.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:00
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
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.