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 moderate growth potential.


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

0.7%

ADC

-0.4%

US REITs

1.0%

US Market


1 Year Return

44.5%

ADC

20.9%

US REITs

6.7%

US Market

Return vs Industry: ADC exceeded the US REITs industry which returned 20.9% over the past year.

Return vs Market: ADC exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

ADCIndustryMarket
7 Day0.7%-0.4%1.0%
30 Day5.3%2.0%-1.8%
90 Day15.9%4.0%-1.8%
1 Year49.6%44.5%26.3%20.9%9.1%6.7%
3 Year78.3%58.5%34.5%17.3%46.1%36.6%
5 Year220.0%156.0%64.8%29.9%66.9%48.6%

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?

36.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ADC ($75.1) is trading below our estimate of fair value ($118.61)

Significantly Undervalued: ADC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ADC is poor value based on its PE Ratio (41.4x) compared to the REITs industry average (34.8x).

PE vs Market: ADC is poor value based on its PE Ratio (41.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ADC is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ADC is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADC's forecast earnings growth (15.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ADC's earnings (15.8% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: ADC's revenue (16.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ADC's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ADC's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: ADC's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: ADC's earnings growth over the past year (13.6%) is below its 5-year average (22.7% per year).

Earnings vs Industry: ADC earnings growth over the past year (13.6%) underperformed the REITs industry 17%.


Return on Equity

High ROE: ADC's Return on Equity (4.5%) is considered low.


Return on Assets

ROA vs Industry: ADC's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: ADC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Agree Realty's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ADC has a high level of physical assets or inventory.

Debt Coverage by Assets: ADC's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: ADC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ADC has a sufficient allowance for bad loans.

Low Risk Liabilities: ADC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ADC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ADC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ADC has an appropriate level of bad loans.


Next Steps

Dividend

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

3.03%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ADC's dividend (3.04%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ADC's dividend (3.04%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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: With its reasonable payout ratio (72.6%), ADC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADC's dividends in 3 years are forecast to be thoroughly covered by earnings (1.3% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Joey Agree (40yo)

6.8yrs

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

Compensation vs. Market: Joey's total compensation ($USD4.88M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

1.7yrs

Average Tenure

48yo

Average Age

Experienced Management: ADC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

64yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
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
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
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

Ownership Breakdown


Management Team

  • Rick Agree (75yo)

    Executive Chairman of the Board

    • Tenure: 25.8yrs
    • Compensation: US$469.13k
  • Joey Agree (40yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$4.88m
  • Danielle Spehar

    General Counsel

    • Tenure: 0.7yrs
  • Laith Hermiz (48yo)

    COO & Executive VP

    • Tenure: 3.9yrs
    • Compensation: US$865.23k
  • David Wolff (50yo)

    Chief Accounting Officer

    • Tenure: 0.7yrs
  • Marc Brandt

    Vice President of Asset Management

    • Tenure: 1.8yrs
  • Clay Thelen (35yo)

    CFO & Secretary

    • Tenure: 1.8yrs
    • Compensation: US$647.26k
  • Peter Coughenour

    Senior Director of Corporate Finance

    • Tenure: 1.7yrs
  • Nicole Witteveen

    Vice President of People & Culture

    • Tenure: 0.5yrs
  • Dan Theeck

    Director of Financial Reporting & Compliance

    • Tenure: 0.4yrs

Board Members

  • Rick Agree (75yo)

    Executive Chairman of the Board

    • Tenure: 25.8yrs
    • Compensation: US$469.13k
  • Farris Kalil (80yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$46.00k
  • Jerry Rossi (76yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$40.00k
  • Joey Agree (40yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$4.88m
  • Craig Erlich (52yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$17.94k
  • William Rubenfaer (74yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$40.00k
  • Greg Lehmkuhl (46yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$17.94k
  • Simon Leopold (51yo)

    Director

    • Tenure: 0.3yrs
  • Merrie Frankel (64yo)

    Independent Director

    • Tenure: 3yrs
    • 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$3.155b
  • Market Cap: US$3.137b
  • 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 Analysis2019/10/14 23:30
End of Day Share Price2019/10/14 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.