Agree Realty Corporation
Agree Realty Corporation Fundamental Analysis
Agree Realty Corporation (ADC-PA) shows moderate financial fundamentals with a PE ratio of 44.84, profit margin of 28.44%, and ROE of 3.49%. The company generates $0.7B in annual revenue with strong year-over-year growth of 14.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ADC-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakADC-PA struggles to generate sufficient returns from assets.
Valuation Score
WeakADC-PA trades at a premium to fair value.
Growth Score
ModerateADC-PA shows steady but slowing expansion.
Financial Health Score
ModerateADC-PA shows balanced financial health with some risks.
Profitability Score
ModerateADC-PA maintains healthy but balanced margins.
Key Financial Metrics
Is ADC-PA Expensive or Cheap?
P/E Ratio
ADC-PA trades at 44.84 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ADC-PA's PEG of 15.51 indicates potential overvaluation.
Price to Book
The market values Agree Realty Corporation at 1.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.13 times EBITDA. This signals the market has high growth expectations.
How Well Does ADC-PA Make Money?
Net Profit Margin
For every $100 in sales, Agree Realty Corporation keeps $28.44 as profit after all expenses.
Operating Margin
Core operations generate 47.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.49 in profit for every $100 of shareholder equity.
ROA
Agree Realty Corporation generates $2.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Agree Realty Corporation generates strong operating cash flow of $486.69M, reflecting robust business health.
Free Cash Flow
Agree Realty Corporation generates strong free cash flow of $486.69M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.40 in free cash annually.
FCF Yield
ADC-PA converts 5.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ADC-PA Stacks Against Its Sector Peers
| Metric | ADC-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.84 | 23.43 | Worse (Expensive) |
| ROE | 3.49% | 685.00% | Weak |
| Net Margin | 28.44% | 2002.00% | Weak |
| Debt/Equity | 0.53 | -21.97 (disorted) | Distorted |
| Current Ratio | 0.83 | 11.11 | Weak Liquidity |
| ROA | 2.09% | 166.00% | Weak |
ADC-PA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Agree Realty Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.11%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-5.18%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
36.83%
Industry Style: Income, Inflation Hedge, REIT
High Growth