Buffett Brain · Research note
Score updated 21 May 2026
ADC· Real Estate
Agree Realty
Agree Realty's high P/E of 41.2 and low ROIC of 3.6% indicate limited value at current prices.
Buffett fit
Weak fit
Owner
50
Durability
80
Management
46
Price
16
Score updated 21 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Real Estate stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Agree Realty, we'd focus on maintaining high occupancy and securing long-term leases with creditworthy tenants.
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The durability of Agree Realty's business relies on the stability of its retail tenants.
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Agree Realty's strategy involves issuing new shares, as indicated by a share count CAGR of 13.47%, which dilutes existing shareholders.
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At a of 41.2 and an earnings yield of 2.43%, Agree Realty's valuation is stretched.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 87.6% is in the top quintile of the sector.
- 2Revenue CAGR of 20.63% over five years indicates growth.
- 3Dividend yield of 4.13% provides income to shareholders.
- 4Debt/equity ratio of 0.53 suggests moderate .
Concerns
5- 1 of 41.2 is high, indicating overvaluation.
- 2 of 3.6% is below sector top-quintile, limiting returns.
- 3Share count CAGR of 13.47% dilutes existing shareholders.
- 4Net debt/EBITDA of 5.32 indicates high risk.
Price history
$67.07-5.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Agree Realty Corporation is a REIT focused on acquiring and developing properties net leased to top retail tenants. The company owns 1,027 properties across 45 states, generating revenue primarily through lease agreements. With a of 87.6%, the business benefits from high efficiency in managing its properties. However, the of 48% is below the sector's top quintile, indicating room for improvement in operational efficiency. The unit economics hinge on stable rental income from its tenants.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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