(WMS) Advanced Drainage Systems - Ratings and Ratios

Advanced Drainage Systems, Inc. (NYSE: WMS) is a leading manufacturer and global supplier of thermoplastic corrugated pipes and water management solutions. The company specializes in designing and producing high-performance polypropylene and polyethylene pipes, chambers, and related products for residential, commercial, agricultural, and infrastructure applications. Its product portfolio includes single, double, and triple wall corrugated pipes, plastic leachfield chambers, synthetic aggregate bundles, septic tanks, and advanced treatment systems. Additionally, the company distributes geosynthetic materials for soil stabilization and erosion control, along with drainage grates, fittings, and water quality management solutions.

WMS operates through four primary segments: Pipe, International, Infiltrator, and Allied Products & Other. The company has established a strong distribution network with centers across North America and international markets, ensuring efficient delivery of its products. Founded in 1966 and headquartered in Hilliard, Ohio, Advanced Drainage Systems has built a reputation for innovation and reliability in water management solutions. Its commitment to sustainable practices and high-quality materials positions it as a key player in the building products industry.

From a technical perspective, WMS is currently trading at $111.13, above its 20-day SMA of $105.40 and 50-day SMA of $110.34, indicating short-term bullish momentum. However, the stock is below its 200-day SMA of $134.10, suggesting long-term bearish pressure. The Average True Range (ATR) of 4.80 reflects moderate volatility. On the fundamental side, the company boasts a market cap of $8.098 billion, a trailing P/E of 17.46, and a forward P/E of 15.82, signaling reasonable valuations. Its price-to-book ratio of 5.24 and price-to-sales ratio of 2.75 highlight strong equity returns, with an ROE of 30.26%.

3-Month Forecast: Based on the technical and fundamental data, WMS is expected to test resistance near $115-$120 in the near term, supported by its recent price momentum. However, long-term bearish trends may cap significant upside, with potential pullbacks toward $100-$105 if support levels fail. The strong ROE and moderate ATR suggest manageable risk for short-term gains, but investors should monitor broader market conditions and industry trends for sustained growth.