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. More Details


Snowflake Analysis

Reasonable growth potential with acceptable track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: WMS's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

8.8%

WMS

-1.6%

US Building

-3.6%

US Market


1 Year Return

162.8%

WMS

39.2%

US Building

36.5%

US Market

Return vs Industry: WMS exceeded the US Building industry which returned 38.8% over the past year.

Return vs Market: WMS exceeded the US Market which returned 38.5% over the past year.


Shareholder returns

WMSIndustryMarket
7 Day8.8%-1.6%-3.6%
30 Day28.8%5.3%2.7%
90 Day55.9%10.0%7.5%
1 Year164.3%162.8%48.6%39.2%39.5%36.5%
3 Year351.2%324.0%66.1%52.7%53.5%43.6%
5 Year466.3%419.9%132.5%100.5%117.5%93.2%

Long-Term 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?

45.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WMS ($110.02) is trading above our estimate of fair value ($85.69)

Significantly Below Fair Value: WMS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WMS is poor value based on its PE Ratio (45.2x) compared to the US Building industry average (23.5x).

PE vs Market: WMS is poor value based on its PE Ratio (45.2x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: WMS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: WMS is overvalued based on its PB Ratio (10x) compared to the US Building industry average (3x).


Next Steps

Future Growth

How is Advanced Drainage Systems forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMS's forecast earnings growth (22.4% per year) is above the savings rate (2%).

Earnings vs Market: WMS's earnings (22.4% per year) are forecast to grow faster than the US market (20.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WMS's revenue (5% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: WMS's revenue (5% 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 high in 3 years time (20.8%)


Next Steps

Past Performance

How has Advanced Drainage Systems performed over the past 5 years?

-10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMS has high quality earnings.

Growing Profit Margin: WMS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WMS's earnings have declined by 10.7% per year over the past 5 years.

Accelerating Growth: WMS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WMS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Building industry (23.9%).


Return on Equity

High ROE: WMS's Return on Equity (20.1%) is considered high.


Next Steps

Financial Health

How is Advanced Drainage Systems's financial position?


Financial Position Analysis

Short Term Liabilities: WMS's short term assets ($663.5M) exceed its short term liabilities ($277.6M).

Long Term Liabilities: WMS's short term assets ($663.5M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: WMS's debt to equity ratio (76%) is considered high.

Reducing Debt: WMS's debt to equity ratio has increased from 64.1% to 76% over the past 5 years.

Debt Coverage: WMS's debt is well covered by operating cash flow (58%).

Interest Coverage: WMS's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Advanced Drainage Systems's current dividend yield, its reliability and sustainability?

0.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WMS's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: WMS's dividend (0.33%) is low compared to the top 25% of dividend payers in the US market (3.76%).


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?

2.9yrs

Average management tenure


CEO

Donald Barbour (58 yo)

3.42yrs

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 ($USD5.78M) is about average for companies of similar size in the US market ($USD6.39M).

Compensation vs Earnings: Donald's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Donald Barbour
CEO, President & Director3.42yrsUS$5.78m0.17%
$ 13.6m
Scott Cottrill
Executive VP5.25yrsUS$2.55m0.051%
$ 4.0m
Robert Klein
Executive Vice Presidentno dataUS$1.72m0.14%
$ 10.6m
Ronald Vitarelli
Executive Vice President9.25yrsUS$1.85m0.047%
$ 3.7m
Roy Moore
Executive Vice Presidentno dataUS$3.62m0.16%
$ 12.3m
Tim Makowski
Chief Accounting Officerno datano data0.0072%
$ 558.3k
Kevin Talley
Executive VP & Chief Administrative Officer4.5yrsUS$927.47k0.034%
$ 2.6m
Michael Higgins
Vice President of Corporate Strategy & Investor Relationsno datano datano data
Brian King
Executive Vice President of Product Management & Marketing0.25yrno data0.0026%
$ 200.4k
Michael Huebert
Senior Vice President0.083yrno data0.044%
$ 3.4m
Darin Harvey
Executive Vice President of Supply Chain2.33yrsno data0.0096%
$ 747.8k
Thomas Waun
Senior Vice President of International0.67yrno data0.0025%
$ 192.6k

2.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: WMS's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Barbour
CEO, President & Director3.42yrsUS$5.78m0.17%
$ 13.6m
Joseph Chlapaty
Chairman Emeritus3.42yrsUS$9.23m9%
$ 701.9m
C. Kidder
Independent Chairman of the Board3.42yrsUS$305.01k0.053%
$ 4.1m
Manuel Perez de la Mesa
Independent Director1.58yrsUS$185.01k0.013%
$ 1.0m
Carl Nelson
Independent Director4.5yrsUS$200.01k0.034%
$ 2.7m
Tanya Fratto
Independent Director8.08yrsUS$185.02k0.033%
$ 2.5m
Robert Eversole
Independent Director13.08yrsUS$220.01k0.087%
$ 6.8m
Anesa Chaibi
Director0.58yrno data0.0029%
$ 223.8k
Mark Haney
Independent Director7yrsUS$185.02k0.018%
$ 1.4m
Michael Coleman
Independent Director2.75yrsUS$185.02k0.011%
$ 827.4k
Alexander Fischer
Independent Director7yrsUS$191.69k0.029%
$ 2.3m
Ross Jones
Independent Director2.75yrsUS$185.01kno data

3.4yrs

Average Tenure

61yo

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 3%.


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$7.798b
  • Shares outstanding: 70.88m
  • 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 i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 00:42
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
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.