Is Agree Realty Corporation (ADC) a Warren Buffett Stock?
Partial Buffett fit - meets 6/9 key criteria, but with reservations.
6/9 criteria passed
+4 sector-quality lift. Top-quintile within its sector on 2 of 5 quality metrics. Raw pillar score 61 → lifted to 65 before grade derivation.
Capped from B to D. ROIC under 8% on both TTM and 5y average - business doesn't earn enough on capital invested; Share count growing by more than 3%/year over 5y - dilutes future per-share value; Net debt is more than 5x EBITDA - balance sheet is stretched What are deal-breaker caps?
Warren Buffett's Criteria, Applied to ADC
ROIC ≥ 15%
Gross margin ≥ 40%
Owner earnings yield ≥ 5%
5y profitable
Net Debt / EBITDA ≤ 3
Revenue CAGR ≥ 8%
EPS CAGR ≥ 8%
FCF / Net income ≥ 0.8
Debt / Equity ≤ 1
How ADC Scores on Other Strategies
Live Financial Snapshot
Market cap
$8.73B
P/E (TTM)
41.2x
ROIC (TTM)
3.6%
Gross margin
87.64%
Other Warren Buffett fit reports
Frequently Asked Questions
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Key terms in this analysis
Educational tool, not investment advice. Scores are computed from publicly-available financial data against published investing-strategy criteria. We do not claim that Warren Buffett personally owns or recommends ADC.