| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
WMS Stock Overview
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, Mexico, and internationally.
Advanced Drainage Systems Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$116.74 |
| 52 Week High | US$138.02 |
| 52 Week Low | US$80.47 |
| Beta | 1.29 |
| 1 Month Change | -6.17% |
| 3 Month Change | 7.69% |
| 1 Year Change | 31.48% |
| 3 Year Change | 373.98% |
| 5 Year Change | 359.61% |
| Change since IPO | 629.63% |
Recent News & Updates
Advanced Drainage Systems (NYSE:WMS) Shareholders Will Want The ROCE Trajectory To Continue
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...
Shareholder Returns
| WMS | US Building | US Market | |
|---|---|---|---|
| 7D | -7.8% | -5.9% | -3.5% |
| 1Y | 31.5% | 20.9% | 10.2% |
Return vs Industry: WMS exceeded the US Building industry which returned 20.9% over the past year.
Return vs Market: WMS exceeded the US Market which returned 10.2% over the past year.
Price Volatility
| WMS volatility | |
|---|---|
| WMS Average Weekly Movement | 5.2% |
| Building Industry Average Movement | 5.1% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.8% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: WMS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: WMS's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1966 | 5,000 | Donald Barbour | https://www.adspipe.com |
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, Mexico, and internationally. It operates through Pipe, International and Infiltrator, and Allied Products & Other segments. The company offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems, EZflow synthetic aggregate bundles, mechanical aerated wastewater solutions, septic tanks and accessories, and combined treatment dispersal systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators.
Advanced Drainage Systems Fundamentals Summary
| WMS fundamental statistics | |
|---|---|
| Market Cap | US$8.32b |
| Earnings (TTM) | US$188.05m |
| Revenue (TTM) | US$2.31b |
44.2x
P/E Ratio3.6x
P/S RatioIs WMS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WMS income statement (TTM) | |
|---|---|
| Revenue | US$2.31b |
| Cost of Revenue | US$1.61b |
| Gross Profit | US$696.90m |
| Expenses | US$508.85m |
| Earnings | US$188.05m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 03, 2022
| Earnings per share (EPS) | 2.64 |
| Gross Margin | 30.22% |
| Net Profit Margin | 8.16% |
| Debt/Equity Ratio | 96.8% |
How did WMS perform over the long term?
See historical performance and comparisonDividends
0.4%
Current Dividend Yield15%
Payout RatioValuation
Is Advanced Drainage Systems undervalued compared to its fair value and its price relative to the market?
23.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WMS ($116.74) is trading below our estimate of fair value ($153.48)
Significantly Below Fair Value: WMS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WMS is poor value based on its PE Ratio (44.2x) compared to the US Building industry average (20.9x).
PE vs Market: WMS is poor value based on its PE Ratio (44.2x) compared to the US market (17x).
Price to Earnings Growth Ratio
PEG Ratio: WMS is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: WMS is overvalued based on its PB Ratio (12x) compared to the US Building industry average (2.6x).
Future Growth
How is Advanced Drainage Systems forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
31.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WMS's forecast earnings growth (31% per year) is above the savings rate (2%).
Earnings vs Market: WMS's earnings (31% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WMS's revenue (8.8% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: WMS's revenue (8.8% 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 (30.4%)
Past Performance
How has Advanced Drainage Systems performed over the past 5 years?
16.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WMS has high quality earnings.
Growing Profit Margin: WMS's current net profit margins (8.2%) are higher than last year (7.9%).
Past Earnings Growth Analysis
Earnings Trend: WMS's earnings have grown by 16.2% per year over the past 5 years.
Accelerating Growth: WMS's earnings growth over the past year (30.8%) exceeds its 5-year average (16.2% per year).
Earnings vs Industry: WMS earnings growth over the past year (30.8%) underperformed the Building industry 45%.
Return on Equity
High ROE: WMS's Return on Equity (24.3%) is considered high.
Financial Health
How is Advanced Drainage Systems's financial position?
Financial Position Analysis
Short Term Liabilities: WMS's short term assets ($817.6M) exceed its short term liabilities ($413.8M).
Long Term Liabilities: WMS's short term assets ($817.6M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: WMS's net debt to equity ratio (95.3%) is considered high.
Reducing Debt: WMS's debt to equity ratio has increased from 62.4% to 96.8% over the past 5 years.
Debt Coverage: WMS's debt is well covered by operating cash flow (28.7%).
Interest Coverage: WMS's interest payments on its debt are well covered by EBIT (10.3x coverage).
Balance Sheet
Dividend
What is Advanced Drainage Systems's current dividend yield, its reliability and sustainability?
0.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WMS's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: WMS's dividend (0.38%) is low compared to the top 25% of dividend payers in the US market (3.48%).
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?
3.3yrs
Average management tenure
CEO
Donald Barbour (59 yo)
4.33yrs
Tenure
US$6,078,864
Compensation
Mr. Donald Scott Barbour has been Chief Executive Officer and President of Advanced Drainage Systems, Inc. since September 1, 2017. Mr. Barbour served as Executive Vice President of Vertiv China formerly k...
CEO Compensation Analysis
Compensation vs Market: Donald's total compensation ($USD6.08M) is about average for companies of similar size in the US market ($USD6.41M).
Compensation vs Earnings: Donald's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: WMS's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: WMS's board of directors are considered experienced (4.9 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Advanced Drainage Systems, Inc.'s 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
- Implied Market Cap: US$8.317b
- Shares outstanding: 71.24m
- Website: https://www.adspipe.com
Number of Employees
Location
- Advanced Drainage Systems, Inc.
- 4640 Trueman Boulevard
- Hilliard
- Ohio
- 43026
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:30 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/03/31 |
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.