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Advanced Drainage Systems

NYSE:WMS
Snowflake Description

Excellent balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WMS
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

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 last earnings update was 52 days ago. More info.


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WMS Share Price and Events
7 Day Returns
-1.4%
NYSE:WMS
-2.1%
US Building
-1.2%
US Market
1 Year Returns
12.8%
NYSE:WMS
0.5%
US Building
3.4%
US Market
WMS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Advanced Drainage Systems (WMS) -1.4% 3.6% 19.2% 12.8% 18.9% -
US Building -2.1% 1.2% 4% 0.5% 7.1% 23.9%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • WMS outperformed the Building industry which returned 0.5% over the past year.
  • WMS outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
WMS
Industry
5yr Volatility vs Market

WMS Value

 Is Advanced Drainage Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Advanced Drainage Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Advanced Drainage Systems.

NYSE:WMS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WMS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (17.09%))
1.19
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.19 * 5.96%)
9.82%

Discounted Cash Flow Calculation for NYSE:WMS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Advanced Drainage Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WMS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.82%)
2020 129.10 Analyst x1 117.56
2021 151.57 Analyst x1 125.67
2022 169.81 Est @ 12.03% 128.20
2023 185.50 Est @ 9.24% 127.52
2024 199.02 Est @ 7.29% 124.58
2025 210.80 Est @ 5.92% 120.15
2026 221.26 Est @ 4.96% 114.84
2027 230.76 Est @ 4.29% 109.06
2028 239.59 Est @ 3.82% 103.10
2029 247.96 Est @ 3.5% 97.16
Present value of next 10 years cash flows $1,167.84
NYSE:WMS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $247.96 × (1 + 2.73%) ÷ (9.82% – 2.73%)
$3,591.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,591.90 ÷ (1 + 9.82%)10
$1,407.46
NYSE:WMS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,167.84 + $1,407.46
$2,575.30
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,575.30 / 57.78
$44.57
NYSE:WMS Discount to Share Price
Calculation Result
Value per share (USD) From above. $44.57
Current discount Discount to share price of $32.32
= -1 x ($32.32 - $44.57) / $44.57
27.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Advanced Drainage Systems is available for.
Intrinsic value
27%
Share price is $32.32 vs Future cash flow value of $44.57
Current Discount Checks
For Advanced Drainage Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Advanced Drainage Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Advanced Drainage Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Advanced Drainage Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Advanced Drainage Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WMS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.23
NYSE:WMS Share Price ** NYSE (2019-07-19) in USD $32.32
United States of America Building Industry PE Ratio Median Figure of 31 Publicly-Listed Building Companies 18.5x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Advanced Drainage Systems.

NYSE:WMS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WMS Share Price ÷ EPS (both in USD)

= 32.32 ÷ 1.23

26.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Advanced Drainage Systems is overvalued based on earnings compared to the US Building industry average.
  • Advanced Drainage Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Advanced Drainage Systems's expected growth come at a high price?
Raw Data
NYSE:WMS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
15%per year
United States of America Building Industry PEG Ratio Median Figure of 26 Publicly-Listed Building Companies 1.32x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:WMS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.26x ÷ 15%

1.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Advanced Drainage Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Advanced Drainage Systems's assets?
Raw Data
NYSE:WMS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $6.69
NYSE:WMS Share Price * NYSE (2019-07-19) in USD $32.32
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.21x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:WMS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WMS Share Price ÷ Book Value per Share (both in USD)

= 32.32 ÷ 6.69

4.83x

* Primary Listing of Advanced Drainage Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Advanced Drainage Systems is overvalued based on assets compared to the US Building industry average.
X
Value checks
We assess Advanced Drainage Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Advanced Drainage Systems has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WMS Future Performance

 How is Advanced Drainage Systems expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Advanced Drainage Systems expected to grow at an attractive rate?
  • Advanced Drainage Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Advanced Drainage Systems's earnings growth is expected to exceed the United States of America market average.
  • Advanced Drainage Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WMS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WMS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 15%
NYSE:WMS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 4.5%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 12.4%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WMS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WMS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31
2021-03-31 1,513 197 106 2
2020-03-31 1,459 174 -176 2
NYSE:WMS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,385 152 70
2018-12-31 1,363 146 64
2018-09-30 1,365 167 79
2018-06-30 1,360 163 69
2018-03-31 1,330 137 56
2017-12-31 1,324 127 44
2017-09-30 1,298 87 23
2017-06-30 1,258 88 28
2017-03-31 1,257 104 28
2016-12-31 1,258 123 33
2016-09-30 1,277 164 37
2016-06-30 1,299 153 27

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Advanced Drainage Systems's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).
  • Advanced Drainage Systems's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WMS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Advanced Drainage Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WMS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 1.83 1.83 1.83 1.00
2020-03-31 -3.04 -3.04 -3.04 1.00
NYSE:WMS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.23
2018-12-31 1.13
2018-09-30 1.39
2018-06-30 1.23
2018-03-31 1.00
2017-12-31 0.79
2017-09-30 0.41
2017-06-30 0.50
2017-03-31 0.51
2016-12-31 0.61
2016-09-30 0.68
2016-06-30 0.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Advanced Drainage Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Advanced Drainage Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Advanced Drainage Systems has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WMS Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Advanced Drainage Systems's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Advanced Drainage Systems has delivered over 20% year on year earnings growth in the past 5 years.
  • Advanced Drainage Systems's 1-year earnings growth is less than its 5-year average (26.3% vs 61.5%)
  • Advanced Drainage Systems's earnings growth has exceeded the US Building industry average in the past year (26.3% vs 24.3%).
Earnings and Revenue History
Advanced Drainage Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Advanced Drainage Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WMS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,384.73 70.18 188.13
2018-12-31 1,362.63 64.14 183.50
2018-09-30 1,365.35 78.73 184.21
2018-06-30 1,359.84 68.84 184.93
2018-03-31 1,330.35 55.59 187.68
2017-12-31 1,324.42 44.11 198.16
2017-09-30 1,298.31 22.94 197.28
2017-06-30 1,258.04 27.84 193.44
2017-03-31 1,257.26 27.97 201.33
2016-12-31 1,258.48 33.40 198.23
2016-09-30 1,276.59 37.12 196.25
2016-06-30 1,299.13 26.99 200.12
2016-03-31 1,290.68 21.40 180.98
2015-12-31 1,252.33 7.97 174.20
2015-09-30 1,219.38 -7.56 168.53
2015-06-30 1,202.76 2.25 157.20
2015-03-31 1,180.07 -19.55 156.01
2014-12-31 1,154.85 -17.30 156.32
2014-09-30 1,135.62 -22.99 149.97
2014-06-30 1,101.64 -31.21 145.32
2014-03-31 1,067.78 -9.76 136.20
2013-12-31 1,070.49 0.78 111.56
2013-03-31 1,017.10 12.88 121.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Advanced Drainage Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Advanced Drainage Systems used its assets less efficiently than the US Building industry average last year based on Return on Assets.
  • Advanced Drainage Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Advanced Drainage Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Advanced Drainage Systems has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WMS Health

 How is Advanced Drainage Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Advanced Drainage Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Advanced Drainage Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Advanced Drainage Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Advanced Drainage Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Advanced Drainage Systems Company Filings, last reported 3 months ago.

NYSE:WMS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 680.95 234.53 8.89
2018-12-31 677.97 226.93 19.76
2018-09-30 683.54 278.92 17.61
2018-06-30 652.35 305.18 18.39
2018-03-31 623.98 297.75 17.59
2017-12-31 628.20 287.81 18.41
2017-09-30 592.95 384.87 11.18
2017-06-30 574.25 405.01 8.72
2017-03-31 548.65 348.64 6.45
2016-12-31 562.45 306.11 12.10
2016-09-30 558.63 349.21 8.80
2016-06-30 539.11 371.14 9.17
2016-03-31 519.90 348.34 6.56
2015-12-31 527.13 337.75 6.41
2015-09-30 519.74 426.16 3.48
2015-06-30 538.37 442.65 4.85
2015-03-31 497.62 400.66 3.62
2014-12-31 542.46 338.43 10.75
2014-09-30 579.93 397.58 6.58
2014-06-30 -184.31 492.88 4.72
2014-03-31 -122.98 454.05 3.93
2013-12-31 -30.28 306.27 5.34
2013-03-31 -3.18 349.99 1.36
  • Advanced Drainage Systems's level of debt (46.9%) compared to net worth is high (greater than 40%).
  • Advanced Drainage Systems had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (47.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).
X
Financial health checks
We assess Advanced Drainage Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Advanced Drainage Systems has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WMS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.11%
Current annual income from Advanced Drainage Systems dividends. Estimated to be 1.11% next year.
If you bought $2,000 of Advanced Drainage Systems shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Advanced Drainage Systems's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Advanced Drainage Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WMS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WMS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.36 1.00
2021-03-31 0.36 2.00
2020-03-31 0.36 1.00
NYSE:WMS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-23 0.360 1.147
2019-02-07 0.320 1.209
2018-11-08 0.320 1.259
2018-05-29 0.320 1.085
2018-02-08 0.280 1.083
2017-08-03 0.280 1.307
2017-05-25 0.280 1.391
2017-02-09 0.240 1.076
2016-08-05 0.240 1.075
2016-06-07 0.240 0.891
2016-02-22 0.200 0.895
2015-11-13 0.200 0.889
2015-08-17 0.200 0.662
2015-05-11 0.200 0.680
2015-02-04 0.160 0.581
2014-11-12 0.160 0.692
2014-11-10 0.000 0.000
2014-11-05 0.000 0.000
2014-09-05 0.000 0.000
2014-09-03 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Advanced Drainage Systems has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Advanced Drainage Systems only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Advanced Drainage Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
X
Income/ dividend checks
We assess Advanced Drainage Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Advanced Drainage Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Advanced Drainage Systems has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WMS Management

 What is the CEO of Advanced Drainage Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Donald Barbour
COMPENSATION $4,384,015
AGE 57
TENURE AS CEO 1.8 years
CEO Bio

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 Co., Ltd. Mr. Barbour has over 25 years of experience in the industrials sector. Mr. Barbour was business leader for Emerson Network Power Systems. He began his career at Emerson as a program manager in 1989 and held increasingly responsible positions at Emerson's Copeland Corporation, including product planning, Residential Market Manager and Director and Vice President of Air Conditioning Marketing. Most recently, he worked for Emerson Electric, a global technology and engineering company that provides solutions for customers in industrial, residential and commercial markets as President and Chief Executive Officer of its $4.5 billion Network Power business. Mr. Barbour was responsible for managing major multi-million dollar contract negotiations, leading and implementing a global profitability optimization program, expanding Emerson’s geographic footprint, introducing new product lines and managing the spin-off and subsequent sale of the Network Power business, now Vertiv. Mr. Barbour served as President and Chief Executive Officer of Vertiv Group Corporation. In 1998, he served as an Executive Vice President of Copeland and served as its General Manager of the air conditioning business and in 2003 and served as its President of business. During his tenure at Emerson, Mr. Barbour also held several leadership positions including Group Vice President of Emerson Client Technologies Group, President, Emerson Client Technologies Asia Pacific Division and President, Emerson Client Technologies Air Conditioning Division. In these roles, Mr. Barbour drove significant technology initiatives, increased profitability and led new product development. Mr. Barbour began his career at Colt Industries, where he worked as a product engineer. Since 2008, Mr. Barbour has served as President of Emerson Climate Technologies-Asia and was named an Emerson Group Vice President in 2010. He has been a Director of Advanced Drainage Systems, Inc. since September 1, 2017. Mr. Barbour serves as a Board Member for Recreation Unlimited a 501(c) 3 not-for profit organization serving individuals with physical and developmental disabilities and health concerns through sports, recreation and education. Mr. Barbour holds Master of Business Administration in Marketing from Vanderbilt University - Owen Graduate School of Management from 1987 to 1989. Mr. Barbour also holds Bachelor of Science in Mechanical Engineering from Southern Methodist University from 1980 to 1984.

CEO Compensation
  • Donald's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Donald's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Advanced Drainage Systems management team in years:

3.7
Average Tenure
52.5
Average Age
  • The tenure for the Advanced Drainage Systems management team is about average.
Management Team

Donald Barbour

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
57
TENURE
1.8 yrs

Scott Cottrill

TITLE
Executive VP
COMPENSATION
$2M
AGE
53
TENURE
3.7 yrs

Kevin Talley

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$927K
AGE
47
TENURE
2.9 yrs

Bob Klein

TITLE
Executive Vice President of Sales
COMPENSATION
$1M
AGE
56
TENURE
13.4 yrs

Ron Vitarelli

TITLE
Executive Vice President of Engineering & Business Development
COMPENSATION
$1M
AGE
52
TENURE
7.7 yrs

Tim Makowski

TITLE
Chief Accounting Officer
AGE
41

Mike Higgins

TITLE
Vice President of Corporate Strategy & Investor Relations

Tori Durliat

TITLE
Director of Marketing

Ewout Leeuwenburg

TITLE
Senior Vice President of International
AGE
53
TENURE
7.7 yrs

Darin Harvey

TITLE
Executive Vice President of Supply Chain
AGE
49
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Advanced Drainage Systems board of directors in years:

5.4
Average Tenure
61
Average Age
  • The tenure for the Advanced Drainage Systems board of directors is about average.
Board of Directors

Bob Kidder

TITLE
Chairman of the Board
COMPENSATION
$222K
AGE
74
TENURE
1.8 yrs

Donald Barbour

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
57
TENURE
1.8 yrs

Joe Chlapaty

TITLE
Chairman Emeritus
COMPENSATION
$9M
AGE
73
TENURE
1.8 yrs

Bob Eversole

TITLE
Director
COMPENSATION
$195K
AGE
56
TENURE
11.5 yrs

Abigail Wexner

TITLE
Director
COMPENSATION
$172K
AGE
57
TENURE
5.4 yrs

Carl Nelson

TITLE
Director
COMPENSATION
$171K
AGE
73
TENURE
2.9 yrs

Alex Fischer

TITLE
Director
COMPENSATION
$165K
AGE
52
TENURE
5.4 yrs

Tanya Fratto

TITLE
Director
COMPENSATION
$160K
AGE
58
TENURE
6.5 yrs

Mark Haney

TITLE
Director
COMPENSATION
$160K
AGE
64
TENURE
5.4 yrs

Richard Rosenthal

TITLE
Director
COMPENSATION
$157K
AGE
86
TENURE
31.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Mar 19 Sell Ronald Vitarelli Individual 13. Mar 19 13. Mar 19 -2,500 $25.47 $-63,682
13. Mar 19 Sell Tim Makowski Individual 11. Mar 19 11. Mar 19 -600 $24.99 $-14,991
29. Aug 18 Buy Berkshire Partners LLC Company 28. Aug 18 28. Aug 18 1,500,000 $30.08 $45,120,000
29. Aug 18 Sell Joseph Chlapaty Individual 28. Aug 18 28. Aug 18 -1,500,000 $30.08 $-45,120,000
17. Aug 18 Sell Ewout Leeuwenburg Individual 15. Aug 18 16. Aug 18 -30,000 $31.45 $-942,719
X
Management checks
We assess Advanced Drainage Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Advanced Drainage Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WMS News

Simply Wall St News

Should You Be Tempted To Sell Advanced Drainage Systems, Inc. (NYSE:WMS) Because Of Its P/E Ratio?

We'll look at Advanced Drainage Systems, Inc.'s (NYSE:WMS) P/E ratio and reflect on what it tells us about the company's share price. … Check out our latest analysis for Advanced Drainage Systems How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Advanced Drainage Systems: P/E of 26.63 = $32.78 ÷ $1.23 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

What Can We Learn From Advanced Drainage Systems, Inc.’s (NYSE:WMS) Investment Returns?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Advanced Drainage Systems: 0.16 = US$131m ÷ (US$1.0b - US$206m) (Based on the trailing twelve months to March 2019.) So, Advanced Drainage Systems has an ROCE of 16%. … How Advanced Drainage Systems's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Is Advanced Drainage Systems, Inc.'s (NYSE:WMS) Future Growth Already Accounted For In Today's Price?

View our latest analysis for Advanced Drainage Systems Where's the growth? … Advanced Drainage Systems is available at price-to-earnings ratio of 25.81x, showing us it is overvalued based on current earnings compared to the Building industry average of 17.77x , and overvalued compared to the US market average ratio of 17.73x. … Based on this growth, Advanced Drainage Systems's stock can be considered a bit overvalued , based on fundamental analysis.

Simply Wall St -

Is Now An Opportune Moment To Examine Advanced Drainage Systems, Inc. (NYSE:WMS)?

Great news for investors – Advanced Drainage Systems is still trading at a fairly cheap price. … Advanced Drainage Systems’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Is Advanced Drainage Systems, Inc.'s (NYSE:WMS) Balance Sheet A Threat To Its Future?

WMS’s Debt (And Cash Flows) WMS's debt levels have fallen from US$380m to US$319m over the last 12 months , which also accounts for long term debt. … On top of this, WMS has produced US$152m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 48%, indicating that WMS’s debt is appropriately covered by operating cash. … Next Steps: WMS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Is Advanced Drainage Systems, Inc.'s (NYSE:WMS) 12% ROE Better Than Average?

Our data shows Advanced Drainage Systems has a return on equity of 12% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Advanced Drainage Systems: 12% = US$70m ÷ US$681m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Advanced Drainage Systems's Debt And Its 12% Return On Equity While Advanced Drainage Systems does have some debt, with debt to equity of just 0.47, we wouldn't say debt is excessive.

Simply Wall St -

Advanced Drainage Systems, Inc. (NYSE:WMS) Insiders Have Been Selling

Check out our latest analysis for Advanced Drainage Systems Advanced Drainage Systems Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Chairman Emeritus, Joseph Chlapaty, for US$45m worth of shares, at about US$30.08 per share. … Advanced Drainage Systems Insiders Are Selling The Stock The last quarter saw substantial insider selling of Advanced Drainage Systems shares. … Insider Ownership of Advanced Drainage Systems I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

I Ran A Stock Scan For Earnings Growth And Advanced Drainage Systems (NYSE:WMS) Passed With Ease

In contrast to all that, I prefer to spend time on companies like Advanced Drainage Systems (NYSE:WMS), which has not only revenues, but also profits. … How Fast Is Advanced Drainage Systems Growing Its Earnings Per Share. … Advanced Drainage Systems shareholders can take confidence from the fact that EBIT margins are up from 6.7% to 9.2%, and revenue is growing.

Simply Wall St -

Is Advanced Drainage Systems, Inc. (NYSE:WMS) Trading At A 43% Discount?

by estimating the company's future cash flows and discounting them to their present value. … This is done using the Discounted Cash Flow (DCF) model! … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Does Advanced Drainage Systems, Inc. (NYSE:WMS) Have A High Beta?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.

Simply Wall St -

WMS Company Info

Description

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.

Details
Name: Advanced Drainage Systems, Inc.
WMS
Exchange: NYSE
Founded: 1966
$1,867,521,705
57,782,231
Website: http://www.ads-pipe.com
Address: Advanced Drainage Systems, Inc.
4640 Trueman Boulevard,
Hilliard,
Ohio, 43026,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WMS Common Stock New York Stock Exchange US USD 28. Jul 2014
DB 6DA Common Stock Deutsche Boerse AG DE EUR 28. Jul 2014
Number of employees
Current staff
Staff numbers
4,400
Advanced Drainage Systems employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/21 00:59
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.