Advanced Drainage Systems
Market Cap
US$7.8b
Last Updated
2021/02/28 00:42 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. More Details
Rewards
Risk Analysis
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
| WMS | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.8% | -1.6% | -3.6% |
| 30 Day | 28.8% | 5.3% | 2.7% |
| 90 Day | 55.9% | 10.0% | 7.5% |
| 1 Year | 164.3%162.8% | 48.6%39.2% | 39.5%36.5% |
| 3 Year | 351.2%324.0% | 66.1%52.7% | 53.5%43.6% |
| 5 Year | 466.3%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
2 weeks ago | Simply Wall St
This Just In: Analysts Are Boosting Their Advanced Drainage Systems, Inc. (NYSE:WMS) Outlook for Next Year3 weeks ago | Simply Wall St
Advanced Drainage Systems, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year3 weeks ago | Simply Wall St
Should You Investigate Advanced Drainage Systems, Inc. (NYSE:WMS) At US$86.57?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 3.42yrs | US$5.78m | 0.17% $ 13.6m | |
| Executive VP | 5.25yrs | US$2.55m | 0.051% $ 4.0m | |
| Executive Vice President | no data | US$1.72m | 0.14% $ 10.6m | |
| Executive Vice President | 9.25yrs | US$1.85m | 0.047% $ 3.7m | |
| Executive Vice President | no data | US$3.62m | 0.16% $ 12.3m | |
| Chief Accounting Officer | no data | no data | 0.0072% $ 558.3k | |
| Executive VP & Chief Administrative Officer | 4.5yrs | US$927.47k | 0.034% $ 2.6m | |
| Vice President of Corporate Strategy & Investor Relations | no data | no data | no data | |
| Executive Vice President of Product Management & Marketing | 0.25yr | no data | 0.0026% $ 200.4k | |
| Senior Vice President | 0.083yr | no data | 0.044% $ 3.4m | |
| Executive Vice President of Supply Chain | 2.33yrs | no data | 0.0096% $ 747.8k | |
| Senior Vice President of International | 0.67yr | no data | 0.0025% $ 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 3.42yrs | US$5.78m | 0.17% $ 13.6m | |
| Chairman Emeritus | 3.42yrs | US$9.23m | 9% $ 701.9m | |
| Independent Chairman of the Board | 3.42yrs | US$305.01k | 0.053% $ 4.1m | |
| Independent Director | 1.58yrs | US$185.01k | 0.013% $ 1.0m | |
| Independent Director | 4.5yrs | US$200.01k | 0.034% $ 2.7m | |
| Independent Director | 8.08yrs | US$185.02k | 0.033% $ 2.5m | |
| Independent Director | 13.08yrs | US$220.01k | 0.087% $ 6.8m | |
| Director | 0.58yr | no data | 0.0029% $ 223.8k | |
| Independent Director | 7yrs | US$185.02k | 0.018% $ 1.4m | |
| Independent Director | 2.75yrs | US$185.02k | 0.011% $ 827.4k | |
| Independent Director | 7yrs | US$191.69k | 0.029% $ 2.3m | |
| Independent Director | 2.75yrs | US$185.01k | no 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
| 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 i...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/28 00:42 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| 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.