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

Reasonable growth potential with adequate balance sheet.

Risks

  • Advanced Drainage Systems is covered by less than 3 analysts.

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

0.2%

NYSE:WMS

0.9%

US Building

2.1%

US Market


1 Year Return

1.4%

NYSE:WMS

-2.3%

US Building

-0.04%

US Market

WMS outperformed the Building industry which returned -1.6% over the past year.

WMS outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

WMSIndustryMarket
7 Day0.2%0.9%2.1%
30 Day-3.7%-1.2%-3.2%
90 Day7.5%4.8%2.8%
1 Year6.2%1.4%-0.7%-2.3%2.2%-0.04%
3 Year44.7%34.9%16.8%7.5%41.5%32.3%
5 Year84.5%69.7%39.7%22.3%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

6%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Advanced Drainage Systems's share price is below the future cash flow value, but not 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 Based on Earnings

Advanced Drainage Systems is loss making, we can't compare its value to the US Building industry average.

Advanced Drainage Systems is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Advanced Drainage Systems, we can't assess if its growth is good value.


Price Based on Value of Assets

Advanced Drainage Systems is overvalued based on assets compared to the US Building industry average.


Next Steps

Future Growth

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

109.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Advanced Drainage Systems's revenue is expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Advanced Drainage Systems's earnings are expected to grow significantly at over 20% yearly.

Advanced Drainage Systems's revenue growth is expected to exceed the United States of America market average.

Advanced Drainage Systems's earnings growth is expected to exceed the United States of America market average.

Advanced Drainage Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Advanced Drainage Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Advanced Drainage Systems does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Advanced Drainage Systems's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Advanced Drainage Systems's 1-year growth to the US Building industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Advanced Drainage Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Advanced Drainage Systems has efficiently used its assets last year compared to the US Building industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Advanced Drainage Systems improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Advanced Drainage Systems's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Advanced Drainage Systems's level of debt (52.1%) 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 (79.9%, greater than 20% of total debt).

Unable to confirm if the interest payments on Advanced Drainage Systems's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

2.67%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Advanced Drainage Systems before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Advanced Drainage Systems's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Advanced Drainage Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

3.8yrs

Average management tenure


CEO

Donald Barbour (57yo)

1.9yrs

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

Donald's remuneration is about average for companies of similar size in United States of America.

Donald's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.8yrs

Average Tenure

52.5yo

Average Age

The tenure for the Advanced Drainage Systems management team is about average.


Board Age and Tenure

2.5yrs

Average Tenure

61yo

Average Age

The average tenure for the Advanced Drainage Systems board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
BuyUS$45,120,00029 Aug 18
Berkshire Partners LLC
EntityCompany
Shares1,500,000
Max PriceUS$30.08
SellUS$45,120,00029 Aug 18
Joseph Chlapaty
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares1,500,000
Max PriceUS$30.08

Ownership Breakdown


Management Team

  • Tori Durliat

    Director of Marketing

    • Tenure: 0.0yrs
  • Scott Cottrill (53yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$1.66m
  • Bob Klein (56yo)

    Executive Vice President of Sales

    • Tenure: 13.5yrs
    • Compensation: US$1.09m
  • Ron Vitarelli (52yo)

    Executive Vice President of Engineering & Business Development

    • Tenure: 7.8yrs
    • Compensation: US$1.10m
  • Donald Barbour (57yo)

    CEO, President & Director

    • Tenure: 1.9yrs
    • Compensation: US$4.38m
  • Ewout Leeuwenburg (53yo)

    Senior Vice President of International

    • Tenure: 7.8yrs
  • Tim Makowski (41yo)

    Chief Accounting Officer

    • Tenure: 0.0yrs
  • Mike Higgins

    Vice President of Corporate Strategy & Investor Relations

    • Tenure: 0.0yrs
  • Kevin Talley (47yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 3.0yrs
    • Compensation: US$927.47k
  • Darin Harvey (49yo)

    Executive Vice President of Supply Chain

    • Tenure: 0.8yrs

Board Members

  • Joe Chlapaty (73yo)

    Chairman Emeritus

    • Tenure: 1.9yrs
    • Compensation: US$9.23m
  • Bob Kidder (74yo)

    Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$222.01k
  • Carl Nelson (73yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: US$170.52k
  • Tanya Fratto (58yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$160.01k
  • Bob Eversole (56yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: US$195.02k
  • Mark Haney (64yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$160.01k
  • Michael Coleman (64yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$144.19k
  • Alex Fischer (52yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$165.01k
  • Donald Barbour (57yo)

    CEO, President & Director

    • Tenure: 1.9yrs
    • Compensation: US$4.38m
  • Ross Jones (54yo)

    Director

    • Tenure: 1.3yrs
    • 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$1.863b
  • Shares outstanding: 57.84m
  • 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 Analysis2019/08/23 00:30
End of Day Share Price2019/08/22 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.