Agree Realty (ADC) AI Stock Analysis

• Market Cap: $8.43B
• Dividend Yield: 3.96%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 43.1
• Beta (1Y): 0.21
• Revenue Growth: 13.75%
• EPS Growth: 5.67%
• Country: US
• Employees: 75
• Sector: Real Estate
• Sector Strength: 80
• Industry: REIT - Retail
• EPS (TTM): 0.42
• Shares Outstanding: 110,018,550
• 10 Day Avg. Volume: 1,786,347
• 30 Day Avg. Volume: 1,467,803
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 21.18
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $80.54
• Price Target Upside: 7.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Agree Realty is well-positioned financially with strong revenue growth, profitability, and cash flow. The stock displays positive technical signals, though caution is warranted due to potential overbought conditions. While the P/E ratio indicates a high valuation, the earnings call highlights strategic resilience and investment growth. Temporary occupancy issues and dilution concerns are noted risks but do not overshadow the overall positive outlook.

Positive Factors

Investment Grade Tenants

ADC's portfolio is more defensive, highlighted by its investment grade tenant exposure (68.3% of ABR).

Liquidity and Capital Management

ADC has a formidable liquidity profile, which would allow the company to fund more than one year of acquisitions without additional equity.

Negative Factors

Tariffs Impact

Tariffs might impact some of ADC's largest tenant categories, including home improvement and auto parts, due to higher steel and aluminum costs.

Tenant Exposure

Rite Aid is preparing its second bankruptcy, potentially winding down a portion of its locations. ADC has exposure to 1 Rite Aid.

Agree Realty Business Overview & Revenue Model

Company Description

Agree Realty Corporation (ADC) is a publicly traded real estate investment trust (REIT) that specializes in the acquisition and development of properties leased to industry-leading retail tenants. The company focuses on owning and operating a portfolio of high-quality retail properties across the United States, with an emphasis on leading retail sectors including grocery, convenience stores, and home improvement, ensuring a diverse and stable tenant base.

How the Company Makes Money

Agree Realty Corporation generates revenue primarily through rental income received from its portfolio of retail properties. The company's revenue model is based on acquiring and developing properties that are leased to single tenants under long-term, triple-net leases. These leases require tenants to pay all property operating expenses, such as maintenance, insurance, and property taxes, which minimizes Agree Realty's operational costs and risks. Additionally, ADC benefits from lease escalations over time, which provide a predictable and growing income stream. The company also engages in strategic partnerships and joint ventures to enhance its property portfolio and leverage opportunities for growth. By focusing on properties leased to creditworthy tenants, Agree Realty ensures a stable and consistent cash flow, which is a key contributor to its earnings.

Agree Realty Financial Statement Overview

Summary

Agree Realty is in a strong financial position, characterized by consistent revenue growth, robust profitability margins, and solid cash flow generation. The company maintains a conservative leverage posture and a healthy equity ratio, providing financial stability. While there are minor pressures on net profit margins and increasing liabilities, the overall financial health remains strong, ensuring the company is well-positioned to capitalize on future opportunities.

Income Statement

Agree Realty has demonstrated strong revenue growth, with a notable increase of 18% from 2023 to 2024, and further growth into 2025. The gross profit margin remains healthy at approximately 73% TTM, indicating efficient cost management. However, there is a slight decline in net profit margin to 29.46% TTM compared to the previous year, suggesting some pressure on net income growth relative to revenue. EBIT and EBITDA margins are robust, reflecting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.40, indicating a conservative leverage position relative to its equity base. Stockholders' equity has shown a consistent upward trend, contributing to a stable financial foundation. The equity ratio stands at 64.13% TTM, which is strong and suggests a solid asset base funded by equity. However, the overall increase in total liabilities could pose future risks if not managed prudently.

Cash Flow

Agree Realty's cash flow from operations is robust, with a healthy free cash flow of $451 million TTM. The operating cash flow to net income ratio is approximately 2.41, which indicates strong cash generation relative to net income. Additionally, the consistent growth in free cash flow, maintaining positive momentum over the recent periods, underscores effective cash management strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
617.10M	537.50M	463.15M	363.61M	248.57M
	Gross Profit
542.25M	470.78M	377.53M	298.26M	216.82M
	EBIT
302.24M	254.39M	218.09M	190.27M	125.13M
	EBITDA
543.26M	463.95M	386.24M	295.67M	192.16M
	Net Income Common Stockholders
189.20M	169.96M	152.44M	122.27M	91.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.40M	10.91M	27.76M	43.25M	6.14M
	Total Assets
8.49B	7.77B	6.71B	5.23B	3.89B
	Total Debt
2.83B	2.41B	1.94B	1.69B	1.22B
	Net Debt
2.83B	2.40B	1.91B	1.64B	1.21B
	Total Liabilities
2.98B	2.57B	2.08B	1.81B	1.36B
	Stockholders Equity
5.51B	5.20B	4.63B	3.42B	2.52B
Cash Flow		Free Cash Flow
431.97M	391.60M	362.12M	246.31M	142.96M
	Operating Cash Flow
431.97M	391.60M	362.12M	246.31M	142.96M
	Investing Cash Flow
-885.41M	-1.27B	-1.62B	-1.39B	-1.30B
	Financing Cash Flow
445.31M	869.01M	1.24B	1.18B	1.12B

Agree Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADC, the sentiment is Negative. The current price of 74.98 is below the 20-day moving average (MA) of 76.57, below the 50-day MA of 75.58, and above the 200-day MA of 72.70, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 31.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADC.

Agree Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NNN	79 Outperform	$7.85B	19.42	9.35%	5.56%	5.40%	-1.33%
FRT	78 Outperform	$8.18B	27.66	9.58%	4.63%	6.21%	22.32%
ADC	77 Outperform	$8.43B	43.09	3.54%	3.96%	13.75%	5.67%
BRX	72 Outperform	$7.70B	24.15	10.99%	4.45%	4.58%	12.65%
PECO	68 Neutral	$4.90B	63.30	3.09%	3.40%	9.27%	19.51%
KRG	65 Neutral	$4.87B	359.58	0.81%	4.74%	4.37%	-75.82%
Sector *	60 Neutral	$2.81B	11.39	0.21%	8508.43%	6.31%	-14.32%

Agree Realty Corporate Events

Agree Realty Projects Strong Investment Growth for 2025

Agree Realty Corporation announced its 2024 investment activity, revealing a total real estate investment volume of approximately $951 million across 282 properties leased to leading tenants in 45 states. The company’s 2025 investment outlook projects a 26% year-over-year increase in investment volume, ranging between $1.1 billion and $1.3 billion, supported by a strong balance sheet and liquidity of over $2 billion. This strategic positioning and robust pipeline are expected to strengthen its market position and enable continued growth despite macroeconomic conditions.