Agree Realty Corporation Common Stock (ADC)

FairStock Score: 52/100 — MIXED

Key Financials

Strengths

• Generates $445 million in annual free cash flow (4.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 18.7% demonstrates strong top-line momentum
• Attractive 4.2% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($47) with negative 65% margin of safety—limited downside protection
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Agree Realty Corporation Common Stock is a small-cap real estate company valued at $9.2 billion. The business generates $750 million in annual revenue with a 8.0% net margin and $445 million in free cash flow. From a quality standpoint, Agree shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is commanding a steep 41.8x multiple, with trades above its Graham Number with a negative 65% margin. Growth dynamics show revenue growing at 18.7% and profit growth of 32.0%. The 4.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Agree's 19% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $445 million in annual free cash flow (4.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 42x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer