NYSE:WMS

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Advanced Drainage Systems

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.


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

WMSIndustryMarket
7 Day-1.6%1.3%2.3%
30 Day7.3%6.0%7.4%
90 Day46.9%22.1%17.9%
1 Year48.0%46.6%-1.3%-8.1%9.0%6.7%
3 Year157.1%140.3%11.2%0.9%36.6%27.7%
5 Year80.4%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

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

NamePositionTenureCompensationOwnership
Donald Barbour
CEO, President & Director2.83yrsUS$5.78m0.18% $5.9m
Scott Cottrill
Executive VP4.67yrsUS$2.55m0.053% $1.8m
Robert Klein
Executive Vice President of Sales14.42yrsUS$1.72m0.31% $10.5m
Ronald Vitarelli
Executive Vice President of Engineering & Business Development8.67yrsUS$1.85m0.048% $1.6m
Roy Moore
Executive Vice Presidentno dataUS$3.62m0.16% $5.4m
Tim Makowski
Chief Accounting Officerno datano data0.0073% $243.9k
Kevin Talley
Executive VP & Chief Administrative Officer3.92yrsUS$927.47k0.034% $1.1m
Michael Higgins
Vice President of Corporate Strategy & Investor Relationsno datano datano data
Tori Durliat
Director of Marketingno datano datano data
Darin Harvey
Executive Vice President of Supply Chain1.75yrsno data0.010% $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

NamePositionTenureCompensationOwnership
Donald Barbour
CEO, President & Director2.83yrsUS$5.78m0.18% $5.9m
Joseph Chlapaty
Chairman Emeritus2.83yrsUS$9.23m9.36% $313.8m
C. Kidder
Independent Chairman of the Board2.83yrsUS$305.01k0.050% $1.7m
Carl Nelson
Independent Director3.92yrsUS$200.01k0.030% $996.2k
Tanya Fratto
Independent Director7.5yrsUS$185.02k0.028% $942.3k
Robert Eversole
Independent Director12.5yrsUS$220.01k0.084% $2.8m
Mark Haney
Independent Director6.42yrsUS$185.02k0.042% $1.4m
Michael Coleman
Independent Director2.17yrsUS$185.02k0.0079% $263.7k
Alexander Fischer
Independent Director6.42yrsUS$191.69k0.030% $1.0m
Ross Jones
Independent Director2.17yrsUS$185.01kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMSNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2014
6DADB (Deutsche Boerse AG)YesCommon StockDEEURJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 23:57
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.