NYSE:ADC

Stock Analysis Report

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.

Snowflake

Fundamentals

Average dividend payer with limited growth.


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


Market Performance


7 Day Return

2.3%

NYSE:ADC

0.3%

US REITs

-0.7%

US Market


1 Year Return

29.3%

NYSE:ADC

8.2%

US REITs

-0.5%

US Market

ADC outperformed the REITs industry which returned 8.1% over the past year.

ADC outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

ADCIndustryMarket
7 Day2.3%0.3%-0.7%
30 Day14.4%3.7%-3.0%
90 Day8.1%4.0%0.9%
1 Year34.2%29.3%13.0%8.2%1.7%-0.5%
3 Year70.5%51.2%24.7%8.4%39.5%30.4%
5 Year205.2%142.2%58.7%25.0%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Agree Realty's share price is below the future cash flow value, and at a moderate discount (> 20%).

Agree Realty's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Agree Realty is overvalued based on earnings compared to the US REITs industry average.

Agree Realty is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Agree Realty is poor value based on expected growth next year.


Price Based on Value of Assets

Agree Realty is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Agree Realty expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Agree Realty's revenue is expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).

Agree Realty's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).

Agree Realty's revenue growth is expected to exceed the United States of America market average.

Agree Realty's earnings growth is positive but not above the United States of America market average.

Agree Realty's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Agree Realty will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Agree Realty performed over the past 5 years?

22.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Agree Realty has delivered over 20% year on year earnings growth in the past 5 years.

Agree Realty's 1-year earnings growth is less than its 5-year average (13.6% vs 22.7%)

Agree Realty's earnings growth has not exceeded the US REITs industry average in the past year (13.6% vs 16.9%).


Return on Equity

Agree Realty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Agree Realty used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Agree Realty's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Agree Realty's financial position?


Financial Position Analysis

Agree Realty's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Agree Realty's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Agree Realty's level of debt (50.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (63.7% vs 50.1% today).

Debt is not well covered by operating cash flow (15.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

3.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Agree Realty's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Agree Realty's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (78.1x coverage).


Next Steps

Management

What is the CEO of Agree Realty's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Joey Agree (40yo)

6.6yrs

Tenure

US$4,882,765

Compensation

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


CEO Compensation Analysis

Joey's remuneration is about average for companies of similar size in United States of America.

Joey's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

1.5yrs

Average Tenure

48yo

Average Age

The average tenure for the Agree Realty management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

68yo

Average Age

The tenure for the Agree Realty board of directors is about average.


Insider Trading

More shares have been bought than sold by Agree Realty individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$3,17416 Jul 19
Joel Agree
EntityIndividual
Role
Chief Executive Officer
President
Shares50
Max PriceUS$63.48
SellUS$65,86603 Jul 19
Farris Kalil
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,034
Max PriceUS$63.70
BuyUS$63,68028 Jun 19
Craig Erlich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$63.68
BuyUS$642,00027 Jun 19
John Rakolta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$64.20
BuyUS$50,60324 May 19
Craig Erlich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares750
Max PriceUS$67.47
BuyUS$450,15807 May 19
John Rakolta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,801
Max PriceUS$66.19
SellUS$48,71201 Apr 19
Farris Kalil
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares701
Max PriceUS$69.49
BuyUS$9,62102 Jan 19
John Rakolta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares162
Max PriceUS$59.39
SellUS$203,00009 Nov 18
Laith Hermiz
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares3,500
Max PriceUS$58.00
BuyUS$109,60007 Sep 18
Craig Erlich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$54.80
BuyUS$328,62006 Sep 18
Richard Agree
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares6,000
Max PriceUS$54.77
BuyUS$39,96806 Sep 18
W. Lehmkuhl
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares730
Max PriceUS$54.75
BuyUS$727,45506 Sep 18
John Rakolta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,274
Max PriceUS$54.84

Ownership Breakdown


Management Team

  • Rick Agree (75yo)

    Executive Chairman of the Board

    • Tenure: 25.7yrs
    • Compensation: US$469.13k
  • Joey Agree (40yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$4.88m
  • Danielle Spehar

    General Counsel

    • Tenure: 0.5yrs
  • Laith Hermiz (48yo)

    COO & Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$865.23k
  • David Wolff (50yo)

    Chief Accounting Officer

    • Tenure: 0.5yrs
  • Marc Brandt

    Vice President of Asset Management

    • Tenure: 1.6yrs
  • Clay Thelen (35yo)

    CFO & Secretary

    • Tenure: 1.7yrs
    • Compensation: US$647.26k
  • Peter Coughenour

    Senior Director of Corporate Finance

    • Tenure: 1.5yrs
  • Nicole Witteveen

    Director of People & Culture

    • Tenure: 0.3yrs
  • Dan Theeck

    Director of Financial Reporting & Compliance

    • Tenure: 0.3yrs

Board Members

  • Rick Agree (75yo)

    Executive Chairman of the Board

    • Tenure: 25.7yrs
    • Compensation: US$469.13k
  • Farris Kalil (80yo)

    Independent Director

    • Tenure: 25.7yrs
    • Compensation: US$46.00k
  • John Rakolta (72yo)

    Independent Director

    • Tenure: 8.0yrs
    • Compensation: US$40.00k
  • Jerry Rossi (76yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$40.00k
  • Joey Agree (40yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$4.88m
  • Craig Erlich (51yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$17.94k
  • William Rubenfaer (74yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$40.00k
  • Greg Lehmkuhl (46yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$17.94k
  • Simon Leopold (51yo)

    Director

    • Tenure: 0.1yrs
  • Merrie Frankel (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$40.00k

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$3.044b
  • Market Cap: US$3.018b
  • Shares outstanding: 42.11m
  • Website: https://www.agreerealty.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADCNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1994
AGLDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1994

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 June 30, 2 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:31
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.