Advanced Drainage Systems
Market Cap
US$2.9b
Last Updated
2020/01/20 00:43 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 and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and slightly overvalued.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.8%
WMS
1.4%
US Building
1.7%
US Market
1 Year Return
64.5%
WMS
32.8%
US Building
23.6%
US Market
Return vs Industry: WMS exceeded the US Building industry which returned 35.5% over the past year.
Return vs Market: WMS exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| WMS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 1.4% | 1.7% |
| 30 Day | 5.1% | 3.1% | 3.5% |
| 90 Day | 15.5% | 5.9% | 11.7% |
| 1 Year | 72.3%64.5% | 34.9%32.8% | 26.2%23.6% |
| 3 Year | 85.9%73.4% | 29.8%23.6% | 53.2%43.3% |
| 5 Year | 78.2%63.3% | 58.6%38.2% | 75.5%56.1% |
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
4 days ago | Simply Wall St
Is Now The Time To Look At Buying Advanced Drainage Systems, Inc. (NYSE:WMS)?1 month ago | Simply Wall St
How Does Advanced Drainage Systems, Inc. (NYSE:WMS) Affect Your Portfolio Volatility?Valuation
Is Advanced Drainage Systems undervalued compared to its fair value and its price relative to the market?
44.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WMS ($40.79) is trading below our estimate of fair value ($75.07)
Significantly Below Fair Value: WMS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WMS is unprofitable, so we can't compare its PE Ratio to the 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 (5.6x) compared to the US Building industry average (2.4x).
Next Steps
Future Growth
How is Advanced Drainage Systems forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
104.1%
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 (1.7%).
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 (7.9% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: WMS's revenue (7.9% 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 (13.4%).
Next Steps
Past Performance
How has Advanced Drainage Systems performed over the past 5 years?
-13.7%
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 -13.7% 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 (-5.5%).
Return on Equity
High ROE: WMS has a negative Return on Equity (-25.34%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Advanced Drainage Systems's financial position?
Financial Position Analysis
Short Term Liabilities: WMS's short term assets ($564.2M) exceed its short term liabilities ($241.3M).
Long Term Liabilities: WMS's short term assets ($564.2M) do not cover its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: WMS's debt to equity ratio (132.6%) is considered high.
Reducing Debt: WMS's debt to equity ratio has increased from 58.3% to 132.6% over the past 5 years.
Debt Coverage: WMS's debt is well covered by operating cash flow (25.3%).
Interest Coverage: WMS is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Inventory Level: WMS has a high level of physical assets or inventory.
Debt Coverage by Assets: WMS's debt is not covered by short term assets (assets are 0.5x debt).
Next Steps
Dividend
What is Advanced Drainage Systems's current dividend yield, its reliability and sustainability?
0.86%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: WMS's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: WMS's dividend (0.88%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, WMS has been paying a dividend for less than 10 years.
Growing Dividend: WMS's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: WMS is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: WMS's dividends in 3 years are forecast to be well covered by earnings (15.6% payout ratio).
Next Steps
Management
What is the CEO of Advanced Drainage Systems's salary, the management and board of directors tenure and is there insider trading?
4.2yrs
Average management tenure
CEO
Donald Barbour (57yo)
2.3yrs
Tenure
US$4,384,015
Compensation
Mr. Donald Scott Barbour has been Chief Executive Officer and President of Advanced Drainage Systems, Inc. since September 1, 2017. Mr. Barbour served as Executive Vice President of Emerson Network Power CÂ ...
CEO Compensation Analysis
Compensation vs Market: Donald's total compensation ($USD4.38M) is about average for companies of similar size in the US market ($USD4.99M).
Compensation vs Earnings: Donald's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
4.2yrs
Average Tenure
52.5yo
Average Age
Experienced Management: WMS's management team is considered experienced (4.2 years average tenure).
Board Age and Tenure
2.9yrs
Average Tenure
60.5yo
Average Age
Experienced Board: WMS's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: WMS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Accounting Officer Chief Accounting Officer |
| Shares | 1,831 |
| Max Price | US$38.63 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of International |
| Shares | 15,000 |
| Max Price | US$36.69 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of International |
| Shares | 5,000 |
| Max Price | US$36.88 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$36.71 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of International |
| Shares | 20,000 |
| Max Price | US$37.49 |
| Entity | Individual |
| Role | Chairman Emeritus Chairman Emeritus |
| Shares | 1,000,000 |
| Max Price | US$37.40 |
| Entity | Company |
| Shares | 97,010 |
| Max Price | US$32.97 |
| Entity | Company |
| Shares | 229,873 |
| Max Price | US$32.98 |
| Entity | Individual |
| Shares | 67,000 |
| Max Price | US$29.75 |
| Entity | Company |
| Shares | 2,000,000 |
| Max Price | US$29.75 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Engineering & Business Development |
| Shares | 2,500 |
| Max Price | US$25.47 |
| Entity | Individual |
| Role | Chief Accounting Officer Chief Accounting Officer |
| Shares | 600 |
| Max Price | US$24.99 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.
Management Team
Tori Durliat
Director of Marketing
Scott Cottrill (53yo)
Executive VP
- Tenure: 4.2yrs
- Compensation: US$1.66m
Bob Klein (56yo)
Executive Vice President of Sales
- Tenure: 13.9yrs
- Compensation: US$1.09m
Ron Vitarelli (52yo)
Executive Vice President of Engineering & Business Development
- Tenure: 8.2yrs
- Compensation: US$1.10m
Donald Barbour (57yo)
CEO, President & Director
- Tenure: 2.3yrs
- Compensation: US$4.38m
Ewout Leeuwenburg (53yo)
Senior Vice President of International
- Tenure: 8.2yrs
Tim Makowski (41yo)
Chief Accounting Officer
Mike Higgins
Vice President of Corporate Strategy & Investor Relations
Kevin Talley (47yo)
Executive VP & Chief Administrative Officer
- Tenure: 3.4yrs
- Compensation: US$927.47k
Darin Harvey (49yo)
Executive Vice President of Supply Chain
- Tenure: 1.3yrs
Board Members
Joe Chlapaty (73yo)
Chairman Emeritus
- Tenure: 2.3yrs
- Compensation: US$9.23m
Bob Kidder (74yo)
Independent Chairman of the Board
- Tenure: 2.3yrs
- Compensation: US$222.01k
Carl Nelson (73yo)
Independent Director
- Tenure: 3.4yrs
- Compensation: US$170.52k
Tanya Fratto (58yo)
Independent Director
- Tenure: 7yrs
- Compensation: US$160.01k
Bob Eversole (56yo)
Independent Director
- Tenure: 12yrs
- Compensation: US$195.02k
Mark Haney (64yo)
Independent Director
- Tenure: 5.9yrs
- Compensation: US$160.01k
Michael Coleman (63yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: US$144.19k
Alex Fischer (52yo)
Independent Director
- Tenure: 5.9yrs
- Compensation: US$165.01k
Donald Barbour (57yo)
CEO, President & Director
- Tenure: 2.3yrs
- Compensation: US$4.38m
Ross Jones (53yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: US$140.85k
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$2.852b
- Shares outstanding: 68.27m
- 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 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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/20 00:43 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.