Agree Realty (ADC) AI Stock Analysis

• Market Cap: $8.08B
• Dividend Yield: 4.22%
• Average Volume (3M): 969.16K
• Price to Earnings (P/E): 43.6
• Beta (1Y): 0.13
• Revenue Growth: 13.27%
• EPS Growth: -5.92%
• Country: US
• Employees: 75
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Retail
• EPS (TTM): 0.43
• Shares Outstanding: 110,666,080
• 10 Day Avg. Volume: 955,281
• 30 Day Avg. Volume: 969,161
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 17.47
• Enterprise Value/Gross Profit: 19.91
• Enterprise Value/Ebitda: 20.32
• 1Y Price Target: $81.75
• Price Target Upside: 13.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 74 Outperform
• Price Target: $81.00 ▲(12.02% Upside)

Agree Realty's overall stock score is driven by its strong financial performance and positive earnings call outlook, which highlight robust growth and strategic investments. However, the high P/E ratio suggests overvaluation, and technical indicators show a lack of strong momentum. The potential dilution from forward equity offerings and concerns about consumer sentiment and retailer bankruptcies are risks to monitor.

Positive Factors

Financial Performance

The FY25 AFFOps guidance was raised above consensus, implying a material acceleration and growth compared to peers.

Investment Strategy

The investment guidance was raised to $1.5 billion, showing confidence in future growth opportunities.

Operational Strategy

Leased occupancy increased to 99.6%, indicating strong demand and utilization of properties.

Negative Factors

Financial Flexibility

The cost of capital increased, which could affect the company's financial flexibility and investment returns.

Market Valuation

ADC shares now trade near a 37% premium to the peer group, which is a significant expansion from the historical average.

Profitability Concerns

Acquisition cap rates decreased, which may impact the profitability of new investments.

Agree Realty Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Agree Realty generates revenue primarily through rental income from its portfolio of retail properties leased to tenants under long-term net lease agreements. These agreements typically require tenants to cover property expenses such as taxes, insurance, and maintenance, resulting in a relatively stable cash flow for the company. In addition to rental income, Agree Realty may also benefit from property appreciation and potential lease escalations over time, enhancing its overall revenue. The company strategically focuses on high-quality tenants with strong credit ratings, which minimizes default risk and supports reliable income streams. Furthermore, Agree Realty's growth is bolstered by its active acquisition strategy, allowing it to expand its portfolio and increase rental revenues, while partnerships with reputable retailers further solidify its position in the market.

Agree Realty Financial Statement Overview

Summary

Agree Realty showcases a robust financial profile with consistent revenue and cash flow growth, strong profit margins, and a stable balance sheet. However, slight declines in net profit margins and ROE warrant monitoring.

Income Statement

Agree Realty has demonstrated strong revenue growth over the past years, with a notable increase from $248.6M in 2020 to $659.8M in TTM (Trailing-Twelve-Months) 2025. Gross profit margins are robust, consistently above 80%, indicating effective cost management. However, the net profit margin has slightly decreased from 2024 to TTM 2025, reflecting increased expenses or operational costs.

Balance Sheet

The company's balance sheet shows a solid financial position with a high equity ratio of 62.2% in TTM 2025, indicating financial stability and a lower risk of financial distress. The debt-to-equity ratio remains moderate at 0.51, suggesting manageable leverage levels. Return on equity has slightly decreased, which could indicate potential challenges in generating profits from equity.

Cash Flow

Agree Realty's cash flow statements reveal a healthy operating cash flow, growing consistently over the years. The free cash flow has also shown significant growth, indicating strong cash-generating capabilities. The operating cash flow to net income ratio suggests effective cash conversion from net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	659.75M	617.10M	537.50M	429.81M	339.32M	248.57M
Gross Profit	578.84M	542.25M	470.78M	377.53M	298.26M	216.82M
EBITDA	567.37M	543.26M	463.95M	386.24M	295.67M	215.80M
Net Income	183.95M	189.20M	169.96M	152.44M	122.27M	91.38M
Balance Sheet
Total Assets	9.08B	8.49B	7.77B	6.71B	5.23B	3.89B
Cash, Cash Equivalents and Short-Term Investments	8.91M	6.40M	10.91M	27.76M	43.25M	6.14M
Total Debt	3.30B	2.83B	2.41B	1.94B	1.69B	1.22B
Total Liabilities	3.43B	2.98B	2.57B	2.08B	1.81B	1.36B
Stockholders Equity	5.65B	5.51B	5.20B	4.63B	3.42B	2.52B
Cash Flow
Free Cash Flow	478.15M	431.97M	391.60M	362.12M	246.31M	142.96M
Operating Cash Flow	478.15M	431.97M	391.60M	362.12M	246.31M	142.96M
Investing Cash Flow	-1.32B	-885.41M	-1.27B	-1.62B	-1.39B	-1.30B
Financing Cash Flow	827.48M	445.31M	869.01M	1.24B	1.18B	1.12B

Agree Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 72.31 is below the 20-day moving average (MA) of 72.48, below the 50-day MA of 72.34, and below the 200-day MA of 72.55, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 66.15 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	75 Outperform	$8.12B	20.45	9.18%	5.48%	4.82%	-5.18%
BRX	75 Outperform	$8.50B	25.42	11.52%	4.09%	5.98%	12.11%
FRT	74 Outperform	$8.92B	26.04	11.04%	4.32%	6.00%	15.77%
ADC	74 Outperform	$8.08B	43.57	3.44%	4.22%	13.27%	-5.92%
PECO	74 Outperform	$5.00B	68.61	3.01%	3.46%	10.31%	14.39%
KRG	66 Neutral	$5.02B	29.08	5.53%	4.69%	4.03%	―
Sector *	63 Neutral	$7.05B	13.45	-0.34%	6.91%	4.08%	-25.24%

Agree Realty Corporate Events

Agree Realty Announces Impact of Forward Equity Offerings

On July 2, 2025, Agree Realty Corporation announced its weighted-average number of common shares outstanding for the three and six months ended June 30, 2025. The announcement detailed the impact of forward equity offerings on the company’s earnings per share calculations, indicating a dilution effect due to these offerings.