Agree Realty Corporation
ADC
$76.08
-0.31%
Agree Realty Corporation is a fully integrated real estate investment trust (REIT) focused on acquiring, developing, and managing retail properties net leased to industry-leading tenants. The company's portfolio includes high-quality, necessity-based retailers such as Walmart, 7-Eleven, and Wawa, positioning it as a niche player in the net-lease retail REIT sector. Currently, the stock is drawing attention due to its consistent revenue growth, robust occupancy, and a dividend yield of 4.36%, which appeals to income-focused investors. The narrative centers on the company's ability to maintain growth through strategic acquisitions and development while navigating the evolving retail landscape, with recent analyst actions remaining largely positive.…
ADC
Agree Realty Corporation
$76.08
Related headlines
ADC 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Agree Realty Corporation's 12-month outlook, with a consensus price target around $84.86 and implied upside of +11.5% versus the current price.
Average Target
$84.86
0 analysts
Implied Upside
+11.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$80 - $93
Analyst target range
ADC is covered by 18 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.85 (where 1 is Strong Buy and 5 is Sell). The average price target is $84.44, implying an upside of 8.5% from the current price of $77.80. The distribution of ratings includes 10 Buy, 5 Outperform, and 3 Neutral, indicating a bullish sentiment. The low target is $78.40, which is near the current price, while the high target is $92.00, suggesting a potential upside of 18.3% if the company achieves its growth targets. The wide range between low and high targets reflects moderate uncertainty, but the overall consensus is positive, with recent actions from firms like Truist and UBS reiterating Buy ratings. The high target likely assumes continued revenue growth and stable occupancy, while the low target may factor in potential retail sector headwinds or rising interest rates. Overall, the analyst community is confident in ADC's ability to deliver steady returns, making it a solid income and growth pick.
ADC Technical Analysis
ADC is trading in a well-defined uptrend over the past year, with a 1-year price change of +8.51% and a 6-month change of +7.71%. The current price of $77.80 sits at 94.7% of its 52-week range (low $69.56, high $82.08), indicating the stock is near its highs, reflecting strong momentum and investor confidence. This positioning suggests the market is rewarding the stock's consistent performance, though it also implies limited upside in the short term without a breakout above the 52-week high.
Beta
0.47
0.47x market volatility
Max Drawdown
-12.1%
Largest decline past year
52-Week Range
$70-$82
Price range past year
Annual Return
+2.4%
Cumulative gain past year
| Period | ADC Return | S&P 500 |
|---|---|---|
| 1m | -1.4% | +2.5% |
| 3m | -0.3% | +5.2% |
| 6m | +1.8% | +11.5% |
| 1y | +2.4% | +22.6% |
| ytd | +5.5% | +12.9% |
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ADC Fundamental Analysis
Agree Realty has demonstrated robust revenue growth, with Q4 2025 revenue of $190.5 million, up 18.5% year-over-year, and a sequential increase from $183.2 million in Q3 2025. The company's revenue trajectory is accelerating, driven by acquisitions and development, with quarterly revenue rising from $169.2 million in Q1 2025 to $190.5 million in Q4 2025. This growth is supported by a high gross margin of 87.4% and an operating margin of 48.5%, reflecting the efficiency of its net-lease model. Net income for Q4 2025 was $56.0 million, with a net margin of 29.4%, and the company has been consistently profitable, with EPS growing from $0.42 in Q1 2025 to $0.47 in Q4 2025. The balance sheet is solid, with a debt-to-equity ratio of 0.53 and a current ratio of 0.83, indicating adequate liquidity. Free cash flow for the trailing twelve months is $504.1 million, providing ample coverage for its dividend, which has a payout ratio of 170.3%, though this is typical for REITs due to depreciation. The company's ROE is 3.26%, which is low but consistent with the capital-intensive nature of real estate, and its interest coverage ratio of 2.54 suggests manageable debt service.
Quarterly Revenue
$190489000.0B
2025-12
Revenue YoY Growth
+18.5%
YoY Comparison
Gross Margin
87.4%
Latest Quarter
Free Cash Flow
$504136000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
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Valuation Analysis: Is ADC Overvalued?
Given that Agree Realty is profitable, the primary valuation metric is the price-to-earnings (PE) ratio. The trailing PE is 40.69x, while the forward PE is 40.29x, indicating that the market expects stable earnings growth. The gap between trailing and forward PE is minimal, suggesting that earnings growth is expected to be modest, which is typical for a mature REIT. Compared to the industry average PE of 22x, ADC trades at a significant premium of 85%, reflecting its superior growth and portfolio quality. However, this premium may be justified by its strong occupancy and revenue growth. Historically, ADC's PE has ranged from 28.3x to 51.1x over the past five years, and the current 40.69x is near the middle of that range, suggesting the stock is fairly valued relative to its own history. The price-to-sales ratio of 11.10x is also elevated, but this is common for REITs with high margins.
PE
40.7x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 28x~44x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
18.3x
Enterprise Value Multiple