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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 top tier 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: 9.8

  • 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 great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain a slight improvement compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent 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 great when measured against comparable firms.

Growth score: 6.6

  • Agree Realty Corporation profit -on goods and services sold- has been growing at a very good pace. It's been impressive in relation to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been top-notch against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares top tier 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 impressive in relation to similar stocks.
  • In past years, profits -before income taxes- grew at a normal speed. It was slightly better than rivals.
  • In the previous years, growth on total net profit has been average, and similar to peer companies.
  • Earnings per share have been almost stagnant in 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 somewhat worse than 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 below average 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 weak when measured against comparable enterprises.

Usage of Funds score: 4.8

  • 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 weak 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 good dividends, considering the current stock price. It came somewhat worse than competitors.
  • Dividend payments have been more or less stable in recent years. 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 significantly enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains a disappointment 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 similar to competitors.

Balance Sheet score: 5.1

  • Agree Realty Corporation intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in 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.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains better than most rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's lacking 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 a two-months credit. It still ranks almost 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 slightly 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 slightly better than rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks top tier 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: 4.6

  • Agree Realty Corporation looks heavily expensive in relation to profits and financial position. It happens to be almost average 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 close to average when compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands somewhat better than 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 weak 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 weak position compared to peer ventures.
  • The company is somewhat indebted, loan repayment needs to be taken into account. It looks better than most 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 below average 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 earned little money when compared to the current stock price and financial position. It happens to be weak 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 in a very weak position 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: 5.68 billions

Revenues TTM: 0.38 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).