Agree RealtyADC +1.28%90 Gross Margin % is 87.60% as of Mar. 2026, which is 0% below its 10-year median of 87.79. GuruFocus rates ADC with a GF Score™ of 90/100 and a GF Value™ of $77.97 (Fairly Valued). The stock has 9 warning signs investors should review. Among 680 REITs companies, Agree Realty ranks better than 80.29% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Agree Realty had a gross margin of 87.60% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Agree Realty Gross Margin % Related Terms
Agree Realty Gross Margin % Historical Data
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The historical data trend for Agree Realty's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Retail subindustry, Agree Realty's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Agree Realty Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Agree Realty's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Agree Realty's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Agree Realty (ADC) has a Gross Margin % of 87.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Agree Realty and its competitors. This is near median its historical median of 87.79. Over the past decade, Agree Realty's Gross Margin % has ranged from 87.23 to 90.61. According to the industry distribution chart, Agree Realty ranks #134 out of 680 companies in the REITs industry, placing it in the top 19.7%.
Is Agree Realty's Gross Margin % too high?
Agree Realty's current Gross Margin % of 87.60% is near median its 10-year median of 87.79. Over the past 10 years, this metric has ranged from a low of 87.23 to a high of 90.61. The REITs industry median Gross Margin % is 69.61. Agree Realty's value of 87.60% is 25.8% above this industry median. Based on the distribution chart, Agree Realty ranks #134 out of 680 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Agree Realty has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Agree Realty's Gross Margin % compare to NNN and BRX?
According to the REITs industry distribution chart, Agree Realty ranks #134 out of 680 companies for Gross Margin %. This places Agree Realty in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 69.61. Agree Realty's value of 87.60% is 25.8% above this benchmark. Historically, Agree Realty's own Gross Margin % has ranged from 87.23 to 90.61 over the past decade. While the company's 10-year median is 87.79 vs. the industry median of 69.61, Agree Realty has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Agree Realty's current Gross Margin % of 87.60% is 25.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Agree Realty and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Agree Realty's current Gross Margin % is 87.60%, which is near median its own 10-year median of 87.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Agree Realty stock overvalued right now?
Based on GuruFocus' analysis, Agree Realty (ADC) is currently considered Fairly Valued. The stock's GF Value™ is $77.97, compared to a current price of $75.32 — trading 3.4% below its estimated fair value. The current Gross Margin % is 87.60%, which is near median its 10-year median of 87.79 and 25.8% above the REITs industry median of 69.61. Agree Realty's overall GF Score™ is 90/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Agree Realty (ADC), the current Gross Margin % is 87.60% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Agree Realty (ADC) Overvalued in 2026?
Based on GuruFocus' analysis, Agree Realty stock appears to be undervalued.
The current stock price of $75.32 is trading 3.4% below its estimated GF Value™ of $77.97.
GuruFocus considers Agree Realty to be Fairly Valued.
Key valuation signals for ADC:
Gross Margin %: 87.60% (near median its 10-year median of 87.79)
GF Value™: $77.97 vs. price of $75.32 (3.4% below fair value)
Industry Position: 25.8% above the REITs median (#134 of 680)
No single metric tells the full story. See the ADC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Agree Realty Corporation operates as a fully integrated real estate investment trust mainly focused on the ownership, acquisition, development and management of retail properties net leased to industry-tenants. The Company is mainly in the business of acquiring, developing and managing retail real estate. Some of its properties in the portfolio include Walmart, 7-Eleven, Wawa, Gerber Collision and others.
90GF Score
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