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Fundamental analysis: Agree Realty Corporation (ADC)

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Excellent) and growth (Excellent), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 9.0

  • Business has been growing at an excellent pace. It's been great when measured against peer companies.
  • Agree Realty Corporation business trend stability is excellent. The higher the stability, the lower the risk. It looks well ranked against rivals.

Margins score: 10.0

  • ADC profit margins -on goods and services sold- are usually huge. They stand better than most rival companies.
  • Business profit on sales tends to be huge. It's more than average in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain in good shape compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually huge considering total sales, and remain more than average in relation to rivals.
  • Total net profit tends to be huge when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 6.4

  • Agree Realty Corporation profit -on goods and services sold- has been growing at a very good pace. It's been excellent in relation to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been better than most comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares great when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be excellent in relation to similar stocks.
  • In past years, profits -before income taxes- grew at a normal speed. It was somewhat better than rivals.
  • In the previous years, growth on total net profit has been average, and more than average in relation to peer companies.
  • Earnings per share have been shrinking in the past years. It's been in a very weak position compared to industry peers.

Miscellaneous score: 9.0

  • ADC managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been mediocre against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 5.8

  • Agree Realty Corporation usually gets sufficient returns on the resources it controls. It proves substantially worse when measured against peer firms.
  • The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
  • There's usually some profitability -in relation to owned resources-. It ranks weak when measured against competitors.
  • In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 4.9

  • ADC usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands substantially worse when measured against rival firms.
  • The company is usually not replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is last-in-rank when measured against industry peers.
  • In the past twelve months it paid very good dividends, considering the current stock price. It came slightly worse than competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved a slight improvement compared to similar firms.
  • The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks slightly worse than comparable companies.
  • The company has heavily enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks encouraging in relation to competitors.

Balance Sheet score: 4.8

  • Agree Realty Corporation intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be in a weak position compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains worse than most rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks similar to rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is somewhat worse than similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks below average when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than three months from the purchase to charging customers. It happens to be somewhat worse than peers.
  • On average pays suppliers many months after the purchase. It ranks great when measured against industry peers.
  • The company charges its customers long before it must pay its suppliers, so the more it sales, the more free funds it gets. It's excellent in relation to similar companies.
  • Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands somewhat worse than rival firms.
  • Business earnings have usually been extremely low when measured against loans taken. Even severely cutting back reinvesting in the business, it could take more than twenty years to repay the obligations. Additional stockholders' funding may be a quicker way, but at the cost of increasing the mouths to feed on the eventual pie of profits. It ranks substantially worse when measured against comparable enterprises.
  • Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
  • Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 4.5

  • Agree Realty Corporation looks heavily expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains rather normal in relation to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands worse than most similar companies.
  • The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still last-in-rank when measured against industry firms.
  • In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up in a very weak position compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks mediocre against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks weak when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a huge relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks a disappointment compared to rival firms.
  • The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be substantially worse when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 6.8


ADC logos

Company at a glance: Agree Realty Corporation (ADC)

Sector, industry: Real Estate, REIT—Retail

Market Cap: 6.59 billions

Revenues TTM: 0.40 billions

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".

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Excellent) and growth (Excellent), and the company's inclination to return cash to the stockholders (Poor).