Advanced Drainage Systems
Market Cap
US$3.4b
Last Updated
2020/07/12 23:57 UTC
Data Sources
Company Financials +
Executive Summary
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, Canada, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Advanced Drainage Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WMS's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.6%
WMS
1.3%
US Building
2.3%
US Market
1 Year Return
46.6%
WMS
-8.1%
US Building
6.7%
US Market
Return vs Industry: WMS exceeded the US Building industry which returned -8.1% over the past year.
Return vs Market: WMS exceeded the US Market which returned 6.7% over the past year.
Shareholder returns
| WMS | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.6% | 1.3% | 2.3% |
| 30 Day | 7.3% | 6.0% | 7.4% |
| 90 Day | 46.9% | 22.1% | 17.9% |
| 1 Year | 48.0%46.6% | -1.3%-8.1% | 9.0%6.7% |
| 3 Year | 157.1%140.3% | 11.2%0.9% | 36.6%27.7% |
| 5 Year | 80.4%65.2% | 45.7%22.1% | 64.2%46.1% |
Price Volatility Vs. Market
How volatile is Advanced Drainage Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Does Advanced Drainage Systems, Inc. (NYSE:WMS) Have A Place In Your Dividend Stock Portfolio?3 months ago | Simply Wall St
Before You Buy Advanced Drainage Systems, Inc. (NYSE:WMS), Consider Its Volatility4 months ago | Simply Wall St
Are Investors Undervaluing Advanced Drainage Systems, Inc. (NYSE:WMS) By 24%?Valuation
Is Advanced Drainage Systems undervalued compared to its fair value and its price relative to the market?
0.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WMS ($48.05) is trading below our estimate of fair value ($48.21)
Significantly Below Fair Value: WMS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WMS is unprofitable, so we can't compare its PE Ratio to the US Building industry average.
PE vs Market: WMS is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate WMS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: WMS is overvalued based on its PB Ratio (6.3x) compared to the US Building industry average (2.3x).
Next Steps
Future Growth
How is Advanced Drainage Systems forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
82.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WMS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: WMS is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: WMS's is expected to become profitable in the next 3 years.
Revenue vs Market: WMS's revenue (1.2% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: WMS's revenue (1.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WMS's Return on Equity is forecast to be low in 3 years time (12.4%).
Next Steps
Past Performance
How has Advanced Drainage Systems performed over the past 5 years?
-45.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WMS is currently unprofitable.
Growing Profit Margin: WMS is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: WMS is unprofitable, and losses have increased over the past 5 years at a rate of -45.1% per year.
Accelerating Growth: Unable to compare WMS's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: WMS is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (-6.8%).
Return on Equity
High ROE: WMS has a negative Return on Equity (-23.77%), as it is currently unprofitable.
Next Steps
Financial Health
How is Advanced Drainage Systems's financial position?
Financial Position Analysis
Short Term Liabilities: WMS's short term assets ($666.2M) exceed its short term liabilities ($238.2M).
Long Term Liabilities: WMS's short term assets ($666.2M) do not cover its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: WMS's debt to equity ratio (136%) is considered high.
Reducing Debt: WMS's debt to equity ratio has increased from 80.6% to 136% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable WMS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: WMS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 29.4% per year.
Next Steps
Dividend
What is Advanced Drainage Systems's current dividend yield, its reliability and sustainability?
0.75%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WMS's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: WMS's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (4.6%).
Stability and Growth of Payments
Stable Dividend: WMS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: WMS is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: WMS is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WMS's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Donald Barbour (58yo)
2.83yrs
Tenure
US$5,775,023
Compensation
Mr. Donald Scott Barbour has been Chief Executive Officer and President of Advanced Drainage Systems, Inc. since September 1, 2017. Mr. Barbour served as Executive Vice President of Emerson Network Power C ...
CEO Compensation Analysis
Compensation vs Market: Donald's total compensation ($USD5.78M) is about average for companies of similar size in the US market ($USD5.85M).
Compensation vs Earnings: Donald's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 2.83yrs | US$5.78m | 0.18% $5.9m | |
| Executive VP | 4.67yrs | US$2.55m | 0.053% $1.8m | |
| Executive Vice President of Sales | 14.42yrs | US$1.72m | 0.31% $10.5m | |
| Executive Vice President of Engineering & Business Development | 8.67yrs | US$1.85m | 0.048% $1.6m | |
| Executive Vice President | no data | US$3.62m | 0.16% $5.4m | |
| Chief Accounting Officer | no data | no data | 0.0073% $243.9k | |
| Executive VP & Chief Administrative Officer | 3.92yrs | US$927.47k | 0.034% $1.1m | |
| Vice President of Corporate Strategy & Investor Relations | no data | no data | no data | |
| Director of Marketing | no data | no data | no data | |
| Executive Vice President of Supply Chain | 1.75yrs | no data | 0.010% $336.1k |
4.3yrs
Average Tenure
53.5yo
Average Age
Experienced Management: WMS's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 2.83yrs | US$5.78m | 0.18% $5.9m | |
| Chairman Emeritus | 2.83yrs | US$9.23m | 9.36% $313.8m | |
| Independent Chairman of the Board | 2.83yrs | US$305.01k | 0.050% $1.7m | |
| Independent Director | 3.92yrs | US$200.01k | 0.030% $996.2k | |
| Independent Director | 7.5yrs | US$185.02k | 0.028% $942.3k | |
| Independent Director | 12.5yrs | US$220.01k | 0.084% $2.8m | |
| Independent Director | 6.42yrs | US$185.02k | 0.042% $1.4m | |
| Independent Director | 2.17yrs | US$185.02k | 0.0079% $263.7k | |
| Independent Director | 6.42yrs | US$191.69k | 0.030% $1.0m | |
| Independent Director | 2.17yrs | US$185.01k | no data |
3.4yrs
Average Tenure
62yo
Average Age
Experienced Board: WMS's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WMS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.7%.
Top Shareholders
Company Information
Advanced Drainage Systems, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Advanced Drainage Systems, Inc.
- Ticker: WMS
- Exchange: NYSE
- Founded: 1966
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$3.351b
- Shares outstanding: 69.74m
- Website: https://www.ads-pipe.com
Number of Employees
Location
- Advanced Drainage Systems, Inc.
- 4640 Trueman Boulevard
- Hilliard
- Ohio
- 43026
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WMS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 2014 |
| 6DA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 2014 |
Biography
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, Canada, 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/12 23:57 |
| End of Day Share Price | 2020/07/10 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.