As Agree Realty Corporation (NYSE:ADC) released its earnings announcement on 31 March 2019, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 21% next year, though this is evidently lower than the previous 5-year average earnings growth of 24%. Currently with trailing-twelve-month earnings of US$58m, we can expect this to reach US$70m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Agree Realty in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
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How will Agree Realty perform in the near future?
The view from 4 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of ADC's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, ADC's earnings should reach US$92m, from current levels of US$58m, resulting in an annual growth rate of 14%. EPS reaches $1.9 in the final year of forecast compared to the current $1.81 EPS today. Margins are currently sitting at 39%, approximately the same as previous years. With analysts forecasting revenue growth of 0.6355 and ADC's net income growth expected to roughly track that, this company may add value for shareholders over time.
Future outlook is only one aspect when you're building an investment case for a stock. For Agree Realty, I've put together three pertinent aspects you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Agree Realty worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Agree Realty is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Agree Realty? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.