(WMS) Advanced Drainage Systems - Overview
Sector: Industrials | Industry: Building Products & Equipment | Exchange: NYSE (USA) | Market Cap: 9.990m USD | Total Return: 12% in 12m
Avg Turnover: 114M
EPS Trend: -23.0%
Qual. Beats: 0
Rev. Trend: 79.1%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Advanced Drainage Systems, Inc. (WMS) is a leading provider of water management solutions, specializing in the manufacture of thermoplastic corrugated pipes and related infrastructure components. The company operates through four primary segments: Pipe, Infiltrator, International, and Allied Products, serving residential, non-residential, agricultural, and infrastructure markets. Its product portfolio includes high-density polyethylene (HDPE) and polypropylene pipes, septic systems, wastewater treatment solutions, and geosynthetic fabrics used for soil stabilization and erosion control.
The business model relies on a vast distribution network to deliver bulky, high-performance plastic alternatives to traditional materials like concrete or steel. Within the building products sector, the shift toward thermoplastic materials is driven by their lower installation costs, corrosion resistance, and lighter weight compared to legacy infrastructure materials. As environmental regulations tighten, the demand for sophisticated stormwater management and subsurface drainage systems continues to grow across North American construction projects.
Investors can evaluate the company’s valuation metrics and historical performance trends by exploring the tools available on ValueRay.
- Residential and non-residential construction starts drive demand for thermoplastic piping systems
- Fluctuations in high-density polyethylene and polypropylene resin costs impact gross margins
- Federal infrastructure spending and environmental regulations accelerate storm water management adoption
- Material conversion from traditional concrete and metal to lightweight polymer solutions
- Residential septic market cycles influence Infiltrator segment revenue and profitability margins
| Net Income: 426.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 2.65 > 1.0 |
| NWC/Revenue: 23.65% < 20% (prev 31.90%; Δ -8.25% < -1%) |
| CFO/TA 0.18 > 3% & CFO 819.1m > Net Income 426.5m |
| Net Debt (1.73b) to EBITDA (933.4m): 1.85 < 3 |
| Current Ratio: 2.42 > 1.5 & < 3 |
| Outstanding Shares: last quarter (78.5m) vs 12m ago 0.38% < -2% |
| Gross Margin: 37.22% > 18% (prev 37.68%; Δ -0.46% > 0.5%) |
| Asset Turnover: 74.44% > 50% (prev 78.70%; Δ -4.26% > 0%) |
| Interest Coverage Ratio: 7.66 > 6 (EBIT TTM 719.0m / Interest Expense TTM 93.9m) |
| A: 0.16 (Total Current Assets 1.23b - Total Current Liabilities 509.5m) / Total Assets 4.51b |
| B: 0.41 (Retained Earnings 1.86b / Total Assets 4.51b) |
| C: 0.18 (EBIT TTM 719.0m / Avg Total Assets 4.10b) |
| D: 0.76 (Book Value of Equity 1.93b / Total Liabilities 2.55b) |
| Altman-Z'' = 4.37 = AA |
| DSRI: 1.12 (Receivables 390.5m/333.2m, Revenue 3.05b/2.90b) |
| GMI: 1.01 (GM 37.68% / 37.22%) |
| AQI: 1.28 (AQ_t 0.46 / AQ_t-1 0.36) |
| SGI: 1.05 (Revenue 3.05b / 2.90b) |
| TATA: -0.09 (NI 426.5m - CFO 819.1m) / TA 4.51b) |
| Beneish M = -2.73 (Cap -4..+1) = A |
As of June 08, 2026, the stock is trading at USD 130.15 with a total of 2,919,325 shares traded.
Over the past week, the price has changed by -6.34%,
over one month by -9.54%,
over three months by -13.05% and
over the past year by +12.03%.
Advanced Drainage Systems has received a consensus analysts rating of 4.67. Therefore, it is recommended to buy WMS.
- StrongBuy: 7
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 180 | 38.3% |
P/E Trailing = 23.9761
P/E Forward = 20.8333
P/S = 3.3274
P/B = 5.3769
P/EG = 1.2257
Revenue TTM = 3.05b USD
EBIT TTM = 719.0m USD
EBITDA TTM = 933.4m USD
Long Term Debt = 1.61b USD (from longTermDebt, last quarter)
Short Term Debt = 44.0m USD (from shortTermDebt, last quarter)
Debt = 1.95b USD (from shortLongTermDebtTotal, last quarter) + Leases 181.4m
Net Debt = 1.73b USD (calculated: Debt 1.95b - CCE 223.0m)
Enterprise Value = 11.7b USD (9.99b + Debt 1.95b - CCE 223.0m)
Interest Coverage Ratio = 7.66 (Ebit TTM 719.0m / Interest Expense TTM 93.9m)
EV/FCF = 20.59x (Enterprise Value 11.7b / FCF TTM 569.3m)
FCF Yield = 4.86% (FCF TTM 569.3m / Enterprise Value 11.7b)
FCF Margin = 18.66% (FCF TTM 569.3m / Revenue TTM 3.05b)
Net Margin = 13.98% (Net Income TTM 426.5m / Revenue TTM 3.05b)
Gross Margin = 37.22% ((Revenue TTM 3.05b - Cost of Revenue TTM 1.92b) / Revenue TTM)
Gross Margin QoQ = 32.36% (prev 35.43%)
Tobins Q-Ratio = 2.60 (Enterprise Value 11.7b / Total Assets 4.51b)
Interest Expense / Debt = 4.81% (Interest Expense 93.9m / Debt 1.95b)
Taxrate = 23.90% (135.0m / 564.9m)
NOPAT = 547.1m (EBIT 719.0m * (1 - 23.90%))
Current Ratio = 2.42 (Total Current Assets 1.23b / Total Current Liabilities 509.5m)
Debt / Equity = 1.01 (Debt 1.95b / totalStockholderEquity, last quarter 1.93b)
Debt / EBITDA = 1.85 (Net Debt 1.73b / EBITDA 933.4m)
Debt / FCF = 3.04 (Net Debt 1.73b / FCF TTM 569.3m)
Total Stockholder Equity = 1.90b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.41% (Net Income 426.5m / Total Assets 4.51b)
RoE = 22.43% (Net Income TTM 426.5m / Total Stockholder Equity 1.90b)
RoCE = 20.50% (EBIT 719.0m / Capital Employed (Equity 1.90b + L.T.Debt 1.61b))
RoIC = 14.07% (NOPAT 547.1m / Invested Capital 3.89b)
WACC = 10.07% (E(9.99b)/V(11.9b) * Re(11.32%) + D(1.95b)/V(11.9b) * Rd(4.81%) * (1-Tc(0.24)))
Discount Rate = 11.32% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: -0.06%
[DCF] Terminal Value 72.62% ; FCFF base≈489.0m ; Y1≈560.5m ; Y5≈825.0m
[DCF] Fair Price = 101.8 (EV 9.53b - Net Debt 1.73b = Equity 7.80b / Shares 76.6m; r=10.07% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -23.02 | EPS CAGR: -1.12% | SUE: 0.51 | # QB: 0
Revenue Correlation: 79.13 | Revenue CAGR: 1.90% | SUE: 0.68 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.09 | Chg30d=-0.75% | Revisions=+25% | Analysts=7
EPS next Quarter (2026-09-30): EPS=1.87 | Chg30d=-13.02% | Revisions=-50% | Analysts=7
EPS current Year (2027-03-31): EPS=6.26 | Chg30d=-6.71% | Revisions=-56% | GrowthEPS=-0.2% | GrowthRev=+13.2%
EPS next Year (2028-03-31): EPS=7.27 | Chg30d=-8.13% | Revisions=-33% | GrowthEPS=+16.1% | GrowthRev=+5.8%
[Analyst] Revisions Ratio: -56%