Advanced Drainage Systems
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Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States and internationally. The last earnings update was 52 days ago. More info.
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WMS Share Price and Events
7 Day Returns
1 Year Returns
WMS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Advanced Drainage Systems (WMS) | -1.4% | 3.6% | 19.2% | 12.8% | 18.9% | - |
| US Building | -2.1% | 1.2% | 4% | 0.5% | 7.1% | 23.9% |
| US Market | -1.2% | 1.2% | 1.7% | 3.4% | 35.5% | 41.6% |
1 Year Return vs Industry and Market
- WMS outperformed the Building industry which returned 0.5% over the past year.
- WMS outperformed the Market in United States of America which returned 3.4% over the past year.
WMS Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Advanced Drainage Systems
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Advanced Drainage Systems.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 2 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Building Unlevered Beta | Simply Wall St/ S&P Global | 1.13 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (17.09%)) |
1.19 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.19 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.19 * 5.96%) |
9.82% |
Discounted Cash Flow Calculation for NYSE:WMS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Advanced Drainage Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.82%) |
|
|---|---|---|---|
| 2020 | 129.10 | Analyst x1 | 117.56 |
| 2021 | 151.57 | Analyst x1 | 125.67 |
| 2022 | 169.81 | Est @ 12.03% | 128.20 |
| 2023 | 185.50 | Est @ 9.24% | 127.52 |
| 2024 | 199.02 | Est @ 7.29% | 124.58 |
| 2025 | 210.80 | Est @ 5.92% | 120.15 |
| 2026 | 221.26 | Est @ 4.96% | 114.84 |
| 2027 | 230.76 | Est @ 4.29% | 109.06 |
| 2028 | 239.59 | Est @ 3.82% | 103.10 |
| 2029 | 247.96 | Est @ 3.5% | 97.16 |
| Present value of next 10 years cash flows | $1,167.84 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= $247.96 × (1 + 2.73%) ÷ (9.82% – 2.73%) |
$3,591.90 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $3,591.90 ÷ (1 + 9.82%)10 |
$1,407.46 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $1,167.84 + $1,407.46 |
$2,575.30 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $2,575.30 / 57.78 |
$44.57 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $44.57 |
| Current discount | Discount to share price of
$32.32
= -1 x ($32.32 - $44.57) / $44.57 |
27.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Advanced Drainage Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Advanced Drainage Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Advanced Drainage Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Advanced Drainage Systems's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $1.23 |
| NYSE:WMS Share Price ** | NYSE (2019-07-19) in USD | $32.32 |
| United States of America Building Industry PE Ratio | Median Figure of 31 Publicly-Listed Building Companies | 18.5x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 17.88x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Advanced Drainage Systems.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:WMS Share Price ÷ EPS (both in USD) = 32.32 ÷ 1.23 |
26.26x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Advanced Drainage Systems is overvalued based on earnings compared to the US Building industry average.
- Advanced Drainage Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Advanced Drainage Systems's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 26.26x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts |
15%per year |
| United States of America Building Industry PEG Ratio | Median Figure of 26 Publicly-Listed Building Companies | 1.32x |
| United States of America Market PEG Ratio | Median Figure of 2,119 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 26.26x ÷ 15% |
1.75x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Advanced Drainage Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Advanced Drainage Systems's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $6.69 |
| NYSE:WMS Share Price * | NYSE (2019-07-19) in USD | $32.32 |
| United States of America Building Industry PB Ratio | Median Figure of 37 Publicly-Listed Building Companies | 2.21x |
| United States of America Market PB Ratio | Median Figure of 5,245 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:WMS Share Price ÷ Book Value per Share (both in USD) = 32.32 ÷ 6.69 |
4.83x |
* Primary Listing of Advanced Drainage Systems.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Advanced Drainage Systems is overvalued based on assets compared to the US Building industry average.
Value checks
We assess Advanced Drainage Systems's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Building industry average (and greater than 0)? (1 check) Advanced Drainage Systems has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
WMS Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Advanced Drainage Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Advanced Drainage Systems's earnings growth is expected to exceed the United States of America market average.
- Advanced Drainage Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:WMS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts | 15% |
| NYSE:WMS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts | 4.5% |
| United States of America Building Industry Earnings Growth Rate | Market Cap Weighted Average | 12.4% |
| United States of America Building Industry Revenue Growth Rate | Market Cap Weighted Average | 4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-03-31 | ||||
| 2021-03-31 | 1,513 | 197 | 106 | 2 |
| 2020-03-31 | 1,459 | 174 | -176 | 2 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 1,385 | 152 | 70 |
| 2018-12-31 | 1,363 | 146 | 64 |
| 2018-09-30 | 1,365 | 167 | 79 |
| 2018-06-30 | 1,360 | 163 | 69 |
| 2018-03-31 | 1,330 | 137 | 56 |
| 2017-12-31 | 1,324 | 127 | 44 |
| 2017-09-30 | 1,298 | 87 | 23 |
| 2017-06-30 | 1,258 | 88 | 28 |
| 2017-03-31 | 1,257 | 104 | 28 |
| 2016-12-31 | 1,258 | 123 | 33 |
| 2016-09-30 | 1,277 | 164 | 37 |
| 2016-06-30 | 1,299 | 153 | 27 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
All data from Advanced Drainage Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-03-31 | ||||
| 2021-03-31 | 1.83 | 1.83 | 1.83 | 1.00 |
| 2020-03-31 | -3.04 | -3.04 | -3.04 | 1.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 1.23 |
| 2018-12-31 | 1.13 |
| 2018-09-30 | 1.39 |
| 2018-06-30 | 1.23 |
| 2018-03-31 | 1.00 |
| 2017-12-31 | 0.79 |
| 2017-09-30 | 0.41 |
| 2017-06-30 | 0.50 |
| 2017-03-31 | 0.51 |
| 2016-12-31 | 0.61 |
| 2016-09-30 | 0.68 |
| 2016-06-30 | 0.50 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Advanced Drainage Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Advanced Drainage Systems's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Advanced Drainage Systems has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
WMS Past Performance
How has Advanced Drainage Systems performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Advanced Drainage Systems has delivered over 20% year on year earnings growth in the past 5 years.
- Advanced Drainage Systems's 1-year earnings growth is less than its 5-year average (26.3% vs 61.5%)
- Advanced Drainage Systems's earnings growth has exceeded the US Building industry average in the past year (26.3% vs 24.3%).
Earnings and Revenue History
All data from Advanced Drainage Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 1,384.73 | 70.18 | 188.13 | |
| 2018-12-31 | 1,362.63 | 64.14 | 183.50 | |
| 2018-09-30 | 1,365.35 | 78.73 | 184.21 | |
| 2018-06-30 | 1,359.84 | 68.84 | 184.93 | |
| 2018-03-31 | 1,330.35 | 55.59 | 187.68 | |
| 2017-12-31 | 1,324.42 | 44.11 | 198.16 | |
| 2017-09-30 | 1,298.31 | 22.94 | 197.28 | |
| 2017-06-30 | 1,258.04 | 27.84 | 193.44 | |
| 2017-03-31 | 1,257.26 | 27.97 | 201.33 | |
| 2016-12-31 | 1,258.48 | 33.40 | 198.23 | |
| 2016-09-30 | 1,276.59 | 37.12 | 196.25 | |
| 2016-06-30 | 1,299.13 | 26.99 | 200.12 | |
| 2016-03-31 | 1,290.68 | 21.40 | 180.98 | |
| 2015-12-31 | 1,252.33 | 7.97 | 174.20 | |
| 2015-09-30 | 1,219.38 | -7.56 | 168.53 | |
| 2015-06-30 | 1,202.76 | 2.25 | 157.20 | |
| 2015-03-31 | 1,180.07 | -19.55 | 156.01 | |
| 2014-12-31 | 1,154.85 | -17.30 | 156.32 | |
| 2014-09-30 | 1,135.62 | -22.99 | 149.97 | |
| 2014-06-30 | 1,101.64 | -31.21 | 145.32 | |
| 2014-03-31 | 1,067.78 | -9.76 | 136.20 | |
| 2013-12-31 | 1,070.49 | 0.78 | 111.56 | |
| 2013-03-31 | 1,017.10 | 12.88 | 121.41 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Advanced Drainage Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Advanced Drainage Systems used its assets less efficiently than the US Building industry average last year based on Return on Assets.
- Advanced Drainage Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Advanced Drainage Systems's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Advanced Drainage Systems has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
WMS Health
How is Advanced Drainage Systems's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Advanced Drainage Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
- Advanced Drainage Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Advanced Drainage Systems's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Advanced Drainage Systems Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 680.95 | 234.53 | 8.89 |
| 2018-12-31 | 677.97 | 226.93 | 19.76 |
| 2018-09-30 | 683.54 | 278.92 | 17.61 |
| 2018-06-30 | 652.35 | 305.18 | 18.39 |
| 2018-03-31 | 623.98 | 297.75 | 17.59 |
| 2017-12-31 | 628.20 | 287.81 | 18.41 |
| 2017-09-30 | 592.95 | 384.87 | 11.18 |
| 2017-06-30 | 574.25 | 405.01 | 8.72 |
| 2017-03-31 | 548.65 | 348.64 | 6.45 |
| 2016-12-31 | 562.45 | 306.11 | 12.10 |
| 2016-09-30 | 558.63 | 349.21 | 8.80 |
| 2016-06-30 | 539.11 | 371.14 | 9.17 |
| 2016-03-31 | 519.90 | 348.34 | 6.56 |
| 2015-12-31 | 527.13 | 337.75 | 6.41 |
| 2015-09-30 | 519.74 | 426.16 | 3.48 |
| 2015-06-30 | 538.37 | 442.65 | 4.85 |
| 2015-03-31 | 497.62 | 400.66 | 3.62 |
| 2014-12-31 | 542.46 | 338.43 | 10.75 |
| 2014-09-30 | 579.93 | 397.58 | 6.58 |
| 2014-06-30 | -184.31 | 492.88 | 4.72 |
| 2014-03-31 | -122.98 | 454.05 | 3.93 |
| 2013-12-31 | -30.28 | 306.27 | 5.34 |
| 2013-03-31 | -3.18 | 349.99 | 1.36 |
- Advanced Drainage Systems's level of debt (46.9%) compared to net worth is high (greater than 40%).
- Advanced Drainage Systems had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
- Debt is well covered by operating cash flow (47.5%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).
Financial health checks
We assess Advanced Drainage Systems's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Advanced Drainage Systems has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
WMS Dividends
What is Advanced Drainage Systems's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Advanced Drainage Systems
shares you are expected to receive
$22
in your first year as a dividend.
Dividend Amount
- Advanced Drainage Systems's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
- Advanced Drainage Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
| United States of America Building Industry Average Dividend Yield | Market Cap Weighted Average of 16 Stocks | 1.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2016 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-03-31 | 0.36 | 1.00 |
| 2021-03-31 | 0.36 | 2.00 |
| 2020-03-31 | 0.36 | 1.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-23 | 0.360 | 1.147 |
| 2019-02-07 | 0.320 | 1.209 |
| 2018-11-08 | 0.320 | 1.259 |
| 2018-05-29 | 0.320 | 1.085 |
| 2018-02-08 | 0.280 | 1.083 |
| 2017-08-03 | 0.280 | 1.307 |
| 2017-05-25 | 0.280 | 1.391 |
| 2017-02-09 | 0.240 | 1.076 |
| 2016-08-05 | 0.240 | 1.075 |
| 2016-06-07 | 0.240 | 0.891 |
| 2016-02-22 | 0.200 | 0.895 |
| 2015-11-13 | 0.200 | 0.889 |
| 2015-08-17 | 0.200 | 0.662 |
| 2015-05-11 | 0.200 | 0.680 |
| 2015-02-04 | 0.160 | 0.581 |
| 2014-11-12 | 0.160 | 0.692 |
| 2014-11-10 | 0.000 | 0.000 |
| 2014-11-05 | 0.000 | 0.000 |
| 2014-09-05 | 0.000 | 0.000 |
| 2014-09-03 | 0.000 | 0.000 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Advanced Drainage Systems has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Advanced Drainage Systems only paid a dividend in the past 5 years.
Income/ dividend checks
We assess Advanced Drainage Systems's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Advanced Drainage Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Advanced Drainage Systems has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
WMS Management
CEO
| COMPENSATION | $4,384,015 |
| AGE | 57 |
| TENURE AS CEO | 1.8 years |
CEO Bio
Mr. Donald Scott Barbour has been Chief Executive Officer and President of Advanced Drainage Systems, Inc. since September 1, 2017. Mr. Barbour served as Executive Vice President of Emerson Network Power Co., Ltd. Mr. Barbour has over 25 years of experience in the industrials sector. Mr. Barbour was business leader for Emerson Network Power Systems. He began his career at Emerson as a program manager in 1989 and held increasingly responsible positions at Emerson's Copeland Corporation, including product planning, Residential Market Manager and Director and Vice President of Air Conditioning Marketing. Most recently, he worked for Emerson Electric, a global technology and engineering company that provides solutions for customers in industrial, residential and commercial markets as President and Chief Executive Officer of its $4.5 billion Network Power business. Mr. Barbour was responsible for managing major multi-million dollar contract negotiations, leading and implementing a global profitability optimization program, expanding Emerson’s geographic footprint, introducing new product lines and managing the spin-off and subsequent sale of the Network Power business, now Vertiv. Mr. Barbour served as President and Chief Executive Officer of Vertiv Group Corporation. In 1998, he served as an Executive Vice President of Copeland and served as its General Manager of the air conditioning business and in 2003 and served as its President of business. During his tenure at Emerson, Mr. Barbour also held several leadership positions including Group Vice President of Emerson Client Technologies Group, President, Emerson Client Technologies Asia Pacific Division and President, Emerson Client Technologies Air Conditioning Division. In these roles, Mr. Barbour drove significant technology initiatives, increased profitability and led new product development. Mr. Barbour began his career at Colt Industries, where he worked as a product engineer. Since 2008, Mr. Barbour has served as President of Emerson Climate Technologies-Asia and was named an Emerson Group Vice President in 2010. He has been a Director of Advanced Drainage Systems, Inc. since September 1, 2017. Mr. Barbour serves as a Board Member for Recreation Unlimited a 501(c) 3 not-for profit organization serving individuals with physical and developmental disabilities and health concerns through sports, recreation and education. Mr. Barbour holds Master of Business Administration in Marketing from Vanderbilt University - Owen Graduate School of Management from 1987 to 1989. Mr. Barbour also holds Bachelor of Science in Mechanical Engineering from Southern Methodist University from 1980 to 1984.
CEO Compensation
- Donald's compensation has been consistent with company performance over the past year, both up more than 20%.
- Donald's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Advanced Drainage Systems management team in years:
- The tenure for the Advanced Drainage Systems management team is about average.
Management Team
Donald Barbour
CEO, President & Director
$4M
57
1.8 yrs
Scott Cottrill
Executive VP
$2M
53
3.7 yrs
Kevin Talley
Executive VP & Chief Administrative Officer
$927K
47
2.9 yrs
Bob Klein
Executive Vice President of Sales
$1M
56
13.4 yrs
Ron Vitarelli
Executive Vice President of Engineering & Business Development
$1M
52
7.7 yrs
Tim Makowski
Chief Accounting Officer
41
Mike Higgins
Vice President of Corporate Strategy & Investor Relations
Tori Durliat
Director of Marketing
Ewout Leeuwenburg
Senior Vice President of International
53
7.7 yrs
Darin Harvey
Executive Vice President of Supply Chain
49
0.8 yrs
Board of Directors Tenure
Average tenure and age of the Advanced Drainage Systems board of directors in years:
- The tenure for the Advanced Drainage Systems board of directors is about average.
Board of Directors
Bob Kidder
Chairman of the Board
$222K
74
1.8 yrs
Donald Barbour
CEO, President & Director
$4M
57
1.8 yrs
Joe Chlapaty
Chairman Emeritus
$9M
73
1.8 yrs
Bob Eversole
Director
$195K
56
11.5 yrs
Abigail Wexner
Director
$172K
57
5.4 yrs
Carl Nelson
Director
$171K
73
2.9 yrs
Alex Fischer
Director
$165K
52
5.4 yrs
Tanya Fratto
Director
$160K
58
6.5 yrs
Mark Haney
Director
$160K
64
5.4 yrs
Richard Rosenthal
Director
$157K
86
31.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 15. Mar 19 | Sell | Ronald Vitarelli | Individual | 13. Mar 19 | 13. Mar 19 | -2,500 | $25.47 | $-63,682 | ||
| 13. Mar 19 | Sell | Tim Makowski | Individual | 11. Mar 19 | 11. Mar 19 | -600 | $24.99 | $-14,991 | ||
| 29. Aug 18 | Buy | Berkshire Partners LLC | Company | 28. Aug 18 | 28. Aug 18 | 1,500,000 | $30.08 | $45,120,000 | ||
| 29. Aug 18 | Sell | Joseph Chlapaty | Individual | 28. Aug 18 | 28. Aug 18 | -1,500,000 | $30.08 | $-45,120,000 | ||
| 17. Aug 18 | Sell | Ewout Leeuwenburg | Individual | 15. Aug 18 | 16. Aug 18 | -30,000 | $31.45 | $-942,719 | ||
Management checks
We assess Advanced Drainage Systems's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Advanced Drainage Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
WMS News
Simply Wall St News
Should You Be Tempted To Sell Advanced Drainage Systems, Inc. (NYSE:WMS) Because Of Its P/E Ratio?
We'll look at Advanced Drainage Systems, Inc.'s (NYSE:WMS) P/E ratio and reflect on what it tells us about the company's share price. … Check out our latest analysis for Advanced Drainage Systems How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Advanced Drainage Systems: P/E of 26.63 = $32.78 ÷ $1.23 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good?
Simply Wall St - – Full articleWhat Can We Learn From Advanced Drainage Systems, Inc.’s (NYSE:WMS) Investment Returns?
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Advanced Drainage Systems: 0.16 = US$131m ÷ (US$1.0b - US$206m) (Based on the trailing twelve months to March 2019.) So, Advanced Drainage Systems has an ROCE of 16%. … How Advanced Drainage Systems's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.
Simply Wall St - – Full articleIs Advanced Drainage Systems, Inc.'s (NYSE:WMS) Future Growth Already Accounted For In Today's Price?
View our latest analysis for Advanced Drainage Systems Where's the growth? … Advanced Drainage Systems is available at price-to-earnings ratio of 25.81x, showing us it is overvalued based on current earnings compared to the Building industry average of 17.77x , and overvalued compared to the US market average ratio of 17.73x. … Based on this growth, Advanced Drainage Systems's stock can be considered a bit overvalued , based on fundamental analysis.
Simply Wall St - – Full articleIs Now An Opportune Moment To Examine Advanced Drainage Systems, Inc. (NYSE:WMS)?
Great news for investors – Advanced Drainage Systems is still trading at a fairly cheap price. … Advanced Drainage Systems’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.
Simply Wall St - – Full articleIs Advanced Drainage Systems, Inc.'s (NYSE:WMS) Balance Sheet A Threat To Its Future?
WMS’s Debt (And Cash Flows) WMS's debt levels have fallen from US$380m to US$319m over the last 12 months , which also accounts for long term debt. … On top of this, WMS has produced US$152m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 48%, indicating that WMS’s debt is appropriately covered by operating cash. … Next Steps: WMS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.
Simply Wall St - – Full articleIs Advanced Drainage Systems, Inc.'s (NYSE:WMS) 12% ROE Better Than Average?
Our data shows Advanced Drainage Systems has a return on equity of 12% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Advanced Drainage Systems: 12% = US$70m ÷ US$681m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Advanced Drainage Systems's Debt And Its 12% Return On Equity While Advanced Drainage Systems does have some debt, with debt to equity of just 0.47, we wouldn't say debt is excessive.
Simply Wall St - – Full articleAdvanced Drainage Systems, Inc. (NYSE:WMS) Insiders Have Been Selling
Check out our latest analysis for Advanced Drainage Systems Advanced Drainage Systems Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Chairman Emeritus, Joseph Chlapaty, for US$45m worth of shares, at about US$30.08 per share. … Advanced Drainage Systems Insiders Are Selling The Stock The last quarter saw substantial insider selling of Advanced Drainage Systems shares. … Insider Ownership of Advanced Drainage Systems I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.
Simply Wall St - – Full articleI Ran A Stock Scan For Earnings Growth And Advanced Drainage Systems (NYSE:WMS) Passed With Ease
In contrast to all that, I prefer to spend time on companies like Advanced Drainage Systems (NYSE:WMS), which has not only revenues, but also profits. … How Fast Is Advanced Drainage Systems Growing Its Earnings Per Share. … Advanced Drainage Systems shareholders can take confidence from the fact that EBIT margins are up from 6.7% to 9.2%, and revenue is growing.
Simply Wall St - – Full articleIs Advanced Drainage Systems, Inc. (NYSE:WMS) Trading At A 43% Discount?
by estimating the company's future cash flows and discounting them to their present value. … This is done using the Discounted Cash Flow (DCF) model! … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows
Simply Wall St - – Full articleDoes Advanced Drainage Systems, Inc. (NYSE:WMS) Have A High Beta?
Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.
Simply Wall St - – Full articleWMS Company Info
Description
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States and internationally. The company offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. It also purchases and distributes construction fabrics and other geotextile products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of approximately 32 distribution centers in approximately 80 countries. Advanced Drainage Systems, Inc. was founded in 1966 and is headquartered in Hilliard, Ohio.
Details
| Name: | Advanced Drainage Systems, Inc. |
| WMS | |
| Exchange: | NYSE |
| Founded: | 1966 |
| $1,867,521,705 | |
| 57,782,231 | |
| Website: | http://www.ads-pipe.com |
| Address: |
Advanced Drainage Systems, Inc. 4640 Trueman Boulevard, Hilliard, Ohio, 43026, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | WMS | Common Stock | New York Stock Exchange | US | USD | 28. Jul 2014 | |
| DB | 6DA | Common Stock | Deutsche Boerse AG | DE | EUR | 28. Jul 2014 |
Number of employees
Current staff
Industry
| Building Products | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/21 00:59 |
| End of day share price update: | 2019/07/19 00:00 |
| Last estimates confirmation: | 2019/07/12 |
| Last earnings filing: | 2019/05/30 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2019/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
