Agree Realty Corporation (ADC) Undervalued by 8.68%

Publicly-traded company Agree Realty Corporation (NYSE:ADC) had a closing price of $74.78 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $81.89, this means that the stock is underpriced by 8.68%. In the past 52 weeks the company’s stock price has moved within the range of $56.46 to $79.54.

This particular stock’s 5-day moving average is 74.19, its 20-day moving average is 74.91 and its 100-day moving average is 72.56. Agree Realty Corporation (ADC) currently has 42.32M shares outstanding, which means that its market capitalization is $3.16B.

The Details: Agree Realty Corporation (ADC) Financial Health

There are numerous indicators we can use to give us a better idea about a public company’s financial health. For instance, we can check out the profit margin, which tells us about how much of a company’s net sales it keeps as earnings. We find this figure by dividing net income by net sales. ADC currently has a profit margin of 39.80%.

It can also be helpful to look at a public company’s operating margin, which shows us how much profit the company retains after taking depreciation and operating expenses into account. Agree Realty Corporation (ADC) has an operating margin of 52.70%.

It is also smart to find out what a company’s Return on Assets is. This percentage tells us how well a company is making use of its net assets to generate a profit. The lower the percentage, the worse the company does with its available assets. At the moment, Agree Realty Corporation Return on Assets is 3.10%.

What Does Wall Street Say about Company?

When considering a new stock purchase, a lot of investors find out how Wall Street analysts feel about the company before they buy in. You can do this by looking for the average analyst rating on the company’s stock. At the moment, the average analyst rating for ADC is Buy. Out of 9 total analysts who were surveyed, 0 rated it a sell, 0 rated it a underweight, 0 rated it an overweight, 2 rated it hold, and 7 rated it a Buy.

Three months ago, on the other hand, the average analyst rating for Agree Realty Corporation (ADC) was a Overweight – from a survey of 10 analysts. Of the analysts who provided ratings, 2 rated the company a Hold, 0 rated it a Sell, 1 rated it an overweight, 0 rated it an underweight, and 7 rated it a Buy.

Understanding Profitability at Agree Realty Corporation (ADC)

Having a look at a company’s recent Earnings per Share (EPS) performance is a useful way of understanding its profitability. In the most recent financial results released by Agree Realty Corporation, for the quarter ending on 12/2019, the company posted EPS of 0.79. The average estimate of Wall Street analysts had projected 0.81.

Wall Street analysts, on average, are forecasting the company’s EPS to be 0.44, compared to 0.37 reported in the same quarter last year. When it comes to net revenue, the average estimate from a total of 6 analysts is 51.2M – compared to 40.7M posted in the year-ago period.