company background image
ADC

Agree Realty NYSE:ADC Stock Report

Last Price

US$78.97

Market Cap

US$6.3b

7D

2.8%

1Y

6.2%

Updated

14 Aug, 2022

Data

Company Financials +
ADC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
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 Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Agree Realty
Historical stock prices
Current Share PriceUS$78.97
52 Week HighUS$79.98
52 Week LowUS$61.62
Beta0.40
1 Month Change5.60%
3 Month Change14.95%
1 Year Change6.16%
3 Year Change9.27%
5 Year Change61.72%
Change since IPO304.97%

Recent News & Updates

Aug 11

Agree Realty declares $0.234 dividend

Agree Realty (NYSE:ADC) declares $0.234/share monthly dividend, in line with previous. Forward yield 3.58% Payable Sept. 14; for shareholders of record Aug. 31; ex-div Aug. 30. See ADC Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 26

3 Top Defensive Stocks On The Eve Of The July Fed Meeting

The July FOMC meeting is this week, and many investors are on edge as the markets remain in flux following months of rate hikes that led to negative sentiment. With CPI reaching 9.1%, the likelihood of a hawkish Federal Reserve going forward is strong, and investors will continue to speculate that a recession is on the rise. Historically, defensive sectors like consumer staples, healthcare, and some real estate asset classes perform reliably during periods of uncertainty. Using Seeking Alpha’s screening tool, I have identified three Quant Strong Buys from defensive sectors that exhibit strong growth traits, elements of sustainable profitability, and solid valuation frameworks. Fed Meeting July 2022: FOMC The summer of extreme heat is upon us, and it's not just because of the temperatures sweeping the nation. Inflation has been running hot since the start of the new year. CPI is up to 9.1%, and concerns about another hawkish increase have investors concerned, especially since June’s 75-basis point hike was the largest jump since 1994. Bloomberg Economist Survey (Bloomberg) Following Jerome Powell reversing course from a 50-point hike to a 75-point hike and then the Bank of Canada’s recent surprise 1% hike, the nagging reality is that anything is possible and Central Banks are starting to throw in the kitchen sink. A Bloomberg survey of economists believes that we’ll see another 75-basis point hike to try and curb inflation. Whatever the decision, it's crucial that investors consider well-established companies that provide consistent returns no matter the business or market cycle. Defensive stocks can provide peace of mind, offering consistent dividends and stable earnings regardless of investor sentiment. As a result, we are focusing on three defensive stocks in different sectors to consider for a portfolio: healthcare, consumer staples, and REIT. 3 Top Defensive Stocks to Invest in With several risks that have investors concerned in a rising interest rate environment, amid geopolitical concerns threatening economies and thus investments, investors are selling out of interest rate-sensitive stocks and turning to defensive stocks that offer better performance, security, and returns. And while the performance in defensive sectors may not be as robust as growth stocks over the last decade, or those that have experienced substantial price increases this past year, defensive stocks tend to be solid investments and protect returns during periods of volatility. Not only are they portfolio diversifiers, but as you can see in the chart below, the three stocks I’ve selected, MRK, CALM, and ADC, have significantly outperformed the S&P 500 YTD. ADC, MRK, CALM vs. S&P 500 YTD Price Performance ADC, MRK, CALM vs S&P 500 YTD Performance (Seeking Alpha Premium) Using the stock screener tool and sorting by my preferred defensive sectors, strong buy ratings, and a minimum $1B market capitalization, I’ve identified some of the best defensive stocks according to quant ratings that should protect returns in a market decline. While there may still be some downside as the Fed raises rates, for now, these stocks come at an attractive inflection point, assuming you're willing to accept some further volatility over the short term. If so, here are two of my top REITs, according to the quant ratings. Healthcare: Buying Defensive Stocks Even during hard times or during a recession, companies that offer products and services considered necessary or required are considered defensive. Hospitals, pharmaceuticals, and insurance are characterized as having defensive growth, so I’ve selected Merck & Co., Inc. (MRK) as the first stock pick. 1. Merck & Co., Inc. (MRK) Market Capitalization: $227.87B Quant Rating: Strong Buy Quant Sector Ranking (as of 7/25): 6 out of 1157 Quant Industry Ranking (as of 7/25): 2 out of 225 Merck & Co., Inc. is one of my top-ranked healthcare stocks operating pharmaceutical and animal healthcare divisions. It offers an array of drugs with strong patent protection, including its cancer vaccine Gardasil and an immuno-oncology drug called Keytruda. MRK Stock Valuation & Momentum In addition to its mission of helping people and animals, MRK has tremendous fundamentals and comes at a discount. With an overall C Valuation grade, the stock’s forward P/E ratio is 14.66x, -45.08% difference to the sector, and it has a forward PEG ratio of 1.06x, -45.32% to the sector. MRK Stock Momentum Grade (Seeking Alpha Premium) Year-to-date, the stock is +17%. As evidenced by its A+ momentum and quarterly price performance above, Merck & Co. is on a bullish trend, gradually increasing its price performance and outperforming its sector median peers. MRK Stock Growth & Profitability MRK is poised for growth and raised its full-year guidance between 17% and 19% after beating first-quarter EPS of $2.14 by $0.31 and revenue of $15.90B by nearly 32% year-over-year. With a diversified pipeline of vaccines and divisions, its oncology and cell therapy revenues are in tremendous shape, along with their financials. Despite Merck’s Keytruda drug losing exclusive patentability in 2029, it's still generating $17B annually. Check out its latest profitability grades below, which showcase a $16.64B cash hoard and A+ overall grade. MRK Stock Profitability (Seeking Alpha Premium) MRK’s gross profit margins outperform its sector peers, with a 3.06% dividend yield and attractive dividend grades that include 32 years of consecutive dividend payments. We understand why the company’s executive team remains confident in its growth drivers and outlook. MRK will report its latest earnings this week, and since Q1, the executive team indicates they have experienced double-digit growth. With a vast pipeline of products, company President and CEO Rob Davis discusses what is driving growth at the Goldman Sachs 43rd Annual Global Healthcare Conference. “And if you look at what's really driving that growth, there continues to be our growth drivers are all really hitting on all cylinders, starting with KEYTRUDA and what we're seeing in the oncology space, Lynparza, Lenvima. Obviously, Gardasil continues to just do extremely well…we expect to see eight potential approvals by 2030, sales in excess of $10 billion by the mid-point of the next decade. So a lot of opportunity there, continuing to see a lot of great opportunity in our vaccines business with the pneumococcal disease, with what we see in RSV, Dengue, a lot of growth that’s going to continue to come in that space.” -Davis Despite the healthcare industry's challenging market environment and circumstances, Merck showcases how it can grow and be profitable, benefiting despite a market downturn. Pharmaceutical stocks have historically shown resilience during periods of volatility. Here is a list of Top Pharmaceutical stocks that may also perform well in the current environment. The next defensive sector is consumer staples. Top Consumer Staple Stock To Invest In Even during market downturns and recessions, consumer staples do not take a significant hit when people have less money to spend because they are not the products people stop buying when money is tight. People require food and hygiene products – the necessities. As such, our next stock is Cal-Maine Foods, Inc. (CALM). 2. Cal-Maine Foods, Inc. (CALM) Market Capitalization: $2.64B Quant Rating: Strong Buy Quant Sector Ranking (as of 7/25): 1 out of 187 Quant Industry Ranking (as of 7/25): 1 out of 56 I wrote about Cal-Maine Foods as a Top Consumer Staple Stock for a recession on June 2nd at $48 because as consumer prices rise, stock prices tend to follow, and food and beverage essentials tend to make safer investments during periods of high volatility. The stock is now $56.85, and the Quant rating is still Strong Buy. As inflation has surged, some food producers have benefited and are raking in the dough. Together with its subsidiaries, CALM produces, grades, and supplies eggs for popular brands like Egg-Land’s Best and Land O’Lakes eggs. Egg prices have been among some of the biggest price increases amid inflation and bird flu cases, prompting more than a 23% increase in April for a dozen eggs. Rise in Egg Prices Chart (Bloomberg) Costs are being passed off to consumers, and people are willing to pay outrageous prices. This jump has resulted in tremendous momentum and record net income for the company, as recorded in its latest earnings report. Let’s dive in. CALM Stock Growth & Profitability Despite an increase in feed and labor costs, CALM has done a great job in offsetting those costs by passing them on to consumers. Posting record net income for fiscal Q4 2022, for a total of $110M, the stock inched 2.24% higher following the announcement. With an EPS of $2.25, which beat by $0.32, and revenue of $592.96M, which beat by nearly 70%, a figure $16.9M above consensus, CALM is a strong buy to consider for portfolios. “We continue to perform at the top of our industry as an efficient operator, despite inflationary market conditions in North America and economic uncertainties globally…We have built an exceptional management team that drives our commitment to be the most reliable producer and distributor of fresh shell eggs and egg products in the United States.” -Dolph Baker, CALM CEO. CALM Stock EPS and Revisions (Seeking Alpha Premium) The results have translated into a Q4 capital project to expand its cage-free production capabilities and a cash dividend of approximately $0.75 per share. Four analysts have provided FY1 Up revisions within the last 90 days, and the stocks’ momentum continues its upward trajectory. CALM Stock Valuation & Momentum Despite CALM’s C valuation, it still comes at a relative discount, with a trailing 0.02x PEG that’s a -94.45 difference to the sector and a forward EV/EBIT -53.57%. CALM Momentum Grade (Seeking Alpha Premium) On a bullish trend over the last year, +50% YTD and +62% over one year, as evidenced by the above momentum grade, CALM substantially outperforms. Because inflation is weighing on earnings power, CALM is passing off increasing feed, packaging, and delivery costs to consumers. CPI jumped to 9.1%, and with eggs having some of the highest inflation markups, CALM maintained its #1 shell egg producer and distributor position, capturing 19% of the market share and continues to see stellar growth and profits. Cal-Maine Foods is a specialty food producer. Here is a list of Top Consumer Staples Stocks for greater diversification. With recession fears continuing to mount and tremendous growth metrics and tailwinds, stocks in the food sector, especially those produced in high volumes and used daily like eggs, are a great consideration for investment. Top REIT Stock To Invest In Real Estate and REITs generally can be considered recession and inflation-resilient, as they tend to be lower volatility if you’re able to maintain a steady income stream. People always need shelter, and in the case of my REIT pick, Agree Realty Corporation (ADC) primarily engages in acquiring and developing properties net leased to big retailers that offer consumer staples and essentials considered defensive. ADC’s tenants include Walmart, Dollar General, and other notable names, as showcased in the image below.

Shareholder Returns

ADCUS REITsUS Market
7D2.8%4.5%3.2%
1Y6.2%-3.6%-10.2%

Return vs Industry: ADC exceeded the US REITs industry which returned -3.6% over the past year.

Return vs Market: ADC exceeded the US Market which returned -10.2% over the past year.

Price Volatility

Is ADC's price volatile compared to industry and market?
ADC volatility
ADC Average Weekly Movement3.1%
REITs Industry Average Movement4.3%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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

Volatility Over Time: ADC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197157Joey 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 Corporation Fundamentals Summary

How do Agree Realty's earnings and revenue compare to its market cap?
ADC fundamental statistics
Market CapUS$6.32b
Earnings (TTM)US$135.63m
Revenue (TTM)US$382.17m

46.4x

P/E Ratio

16.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADC income statement (TTM)
RevenueUS$382.17m
Cost of RevenueUS$47.13m
Gross ProfitUS$335.03m
Other ExpensesUS$199.40m
EarningsUS$135.63m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.70
Gross Margin87.67%
Net Profit Margin35.49%
Debt/Equity Ratio48.8%

How did ADC perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

82%

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 DateAug 30 2022
Dividend Pay DateSep 14 2022
Days until Ex dividend15 days
Days until Dividend pay date30 days

Does ADC pay a reliable dividends?

See ADC dividend history and benchmarks