NYSE:WMS

Stock Analysis Report

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 and internationally.

Snowflake

Fundamentals

Adequate balance sheet and 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


Market Performance


7 Day Return

5.3%

WMS

2.0%

US Building

2.3%

US Market


1 Year Return

31.8%

WMS

17.0%

US Building

5.6%

US Market

Return vs Industry: WMS exceeded the US Building industry which returned 17% over the past year.

Return vs Market: WMS exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

WMSIndustryMarket
7 Day5.3%2.0%2.3%
30 Day8.9%-0.2%-1.0%
90 Day12.2%4.4%-0.7%
1 Year38.1%31.8%18.8%17.0%7.9%5.6%
3 Year87.0%74.3%29.1%18.2%45.6%36.3%
5 Year78.9%64.1%59.8%40.3%65.8%47.6%

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?

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WMS ($36.25) is trading below our estimate of fair value ($45.43)

Significantly Undervalued: WMS is trading below fair value, but not by a significant amount.


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

Low 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 (10.5x) compared to the US Building industry average (2.2x).


Next Steps

Future Growth

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

119.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: WMS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: WMS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: WMS's revenue (12% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WMS's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if WMS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

17.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WMS is unprofitable, but has reduced losses over the past 5 years at a rate of 17.7% 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 (7.7%).


Return on Equity

High ROE: WMS has a negative Return on Equity (-36.51%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WMS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: WMS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Advanced Drainage Systems's financial position?


Financial Position Analysis

Short Term Liabilities: WMS's short term assets ($480.7M) exceeds its short term liabilities ($244.0M)

Long Term Liabilities: WMS's short term assets (480.7M) exceeds its long term liabilities (332.4M)


Debt to Equity History and Analysis

Debt Level: WMS's debt to equity ratio (52.1%) is considered high

Reducing Debt: WMS had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: WMS's debt is well covered by operating cash flow (79.9%).

Interest Coverage: Insufficient data to determine if WMS's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: WMS has a high level of physical assets or inventory.

Debt Coverage by Assets: WMS's debt is covered by short term assets (assets are 1.875530x debt).


Next Steps

Dividend

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

0.99%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.8%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WMS's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WMS's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


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?

3.9yrs

Average management tenure


CEO

Donald Barbour (57yo)

2.1yrs

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 C ...


CEO Compensation Analysis

Compensation vs. Market: Donald has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Donald's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: WMS's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: WMS's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: WMS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$3,066,34607 Oct 19
StockBridge Partners, LLC
EntityCompany
Shares97,010
Max PriceUS$32.97
BuyUS$7,320,50603 Oct 19
StockBridge Partners, LLC
EntityCompany
Shares229,873
Max PriceUS$32.98
BuyUS$1,993,25012 Sep 19
Roy Moore
EntityIndividual
Shares67,000
Max PriceUS$29.75
BuyUS$59,500,00012 Sep 19
Berkshire Partners LLC
EntityCompany
Shares2,000,000
Max PriceUS$29.75
SellUS$63,68215 Mar 19
Ronald Vitarelli
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Engineering & Business Development
Shares2,500
Max PriceUS$25.47
SellUS$14,99113 Mar 19
Tim Makowski
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares600
Max PriceUS$24.99

Ownership Breakdown


Management Team

  • Tori Durliat

    Director of Marketing

    • Tenure: 0yrs
  • Scott Cottrill (53yo)

    Executive VP

    • Tenure: 3.9yrs
    • Compensation: US$1.66m
  • Bob Klein (56yo)

    Executive Vice President of Sales

    • Tenure: 13.7yrs
    • Compensation: US$1.09m
  • Ron Vitarelli (52yo)

    Executive Vice President of Engineering & Business Development

    • Tenure: 7.9yrs
    • Compensation: US$1.10m
  • Donald Barbour (57yo)

    CEO, President & Director

    • Tenure: 2.1yrs
    • Compensation: US$4.38m
  • Ewout Leeuwenburg (53yo)

    Senior Vice President of International

    • Tenure: 7.9yrs
  • Tim Makowski (41yo)

    Chief Accounting Officer

    • Tenure: 0yrs
  • Mike Higgins

    Vice President of Corporate Strategy & Investor Relations

    • Tenure: 0yrs
  • Kevin Talley (47yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 3.2yrs
    • Compensation: US$927.47k
  • Darin Harvey (49yo)

    Executive Vice President of Supply Chain

    • Tenure: 1yrs

Board Members

  • Joe Chlapaty (73yo)

    Chairman Emeritus

    • Tenure: 2.1yrs
    • Compensation: US$9.23m
  • Bob Kidder (74yo)

    Chairman of the Board

    • Tenure: 2.1yrs
    • Compensation: US$222.01k
  • Carl Nelson (73yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$170.52k
  • Tanya Fratto (58yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$160.01k
  • Bob Eversole (56yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$195.02k
  • Mark Haney (64yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$160.01k
  • Michael Coleman (64yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$144.19k
  • Alex Fischer (52yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$165.01k
  • Donald Barbour (57yo)

    CEO, President & Director

    • Tenure: 2.1yrs
    • Compensation: US$4.38m
  • Ross Jones (54yo)

    Director

    • Tenure: 1.4yrs
    • 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$2.472b
  • Shares outstanding: 68.19m
  • 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 Analysis2019/10/17 00:30
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.