WMS Stock Analysis: Advanced Drainage Systems | NYSE
Building Products & Equipment | NYSE, USA | Market Cap: 11.892m USD | 12M Return: 34.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 141M
EPS Trend: -7.0%
Qual. Beats: 0
Rev. Trend: 79.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality
Advanced Drainage Systems, Inc. (NYSE: WMS) designs, manufactures, and markets thermoplastic corrugated pipes and related water management products for customers in the United States, Canada, and international markets. The company operates through two reportable segments: Stormwater and Wastewater. Its core offerings include single, double, and triple wall corrugated polypropylene and polyethylene pipes, plastic leachfield chambers, EZflow synthetic aggregate bundles, septic tanks, and combined treatment and dispersal systems such as AeroFin and the enviro-septic product lines.
Beyond pipe manufacturing, the company distributes geosynthetic products-including construction fabrics used for soil stabilization, filtration, separation, and erosion control-as well as drainage grates, PVC hubs, channel drains, catch basins, and water quality filters. These products serve non-residential, residential, agriculture, and infrastructure end markets, distributed through a network of company-operated distribution centers.
Headquartered in Hilliard, Ohio, and incorporated in 1966, WMS operates within the Building Products sub-industry of the Industrials sector. The companys business model centers on providing engineered solutions for water management, a sector driven by stormwater regulation, wastewater infrastructure needs, and ongoing construction activity in both residential and civil engineering markets.
- Resin price volatility pressures pipe product margins
- Federal infrastructure spending lifts stormwater segment orders
- Infiltrator acquisition drives wastewater segment revenue growth
| 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 (1.75b) to EBITDA (870.0m): 2.01 < 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: 6.98 > 6 (EBIT TTM 655.5m / 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: 0.16 (EBIT TTM 655.5m / Avg Total Assets 4.10b) |
| D: 0.76 (Book Value of Equity 1.93b / Total Liabilities 2.55b) |
| Altman-Z'' = 4.27 = 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 29, 2026, the stock is trading at USD 154.50 with a total of 922,192 shares traded. Over the past week, the price has changed by +5.02%, over one month by +12.04%, over three months by +15.19% and over the past year by +34.05%.
Current recommended Stop Loss: 147.40 (which is 4.6% or 1.2 ATR below the current price).
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 | 181.2 | 17.3% |
P/E Trailing = 28.4881
P/E Forward = 24.1546
P/S = 3.8986
P/B = 6.1542
P/EG = 1.4193
Revenue TTM = 3.05b USD
EBIT TTM = 655.5m USD
EBITDA TTM = 870.0m USD
Long Term Debt = 1.61b USD (from longTermDebt, last quarter)
Short Term Debt = 65.3m USD (from shortTermDebt, last quarter)
Debt = 1.97b USD (from shortLongTermDebtTotal, last quarter) + Leases 181.4m
Net Debt = 1.75b USD (calculated: Debt 1.97b - CCE 223.0m)
Enterprise Value = 13.6b USD (11.9b + Debt 1.97b - CCE 223.0m)
Interest Coverage Ratio = 6.98 (Ebit TTM 655.5m / Interest Expense TTM 93.9m)
EV/FCF = 23.97x (Enterprise Value 13.6b / FCF TTM 569.3m)
FCF Yield = 4.17% (FCF TTM 569.3m / Enterprise Value 13.6b)
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 = 3.03 (Enterprise Value 13.6b / Total Assets 4.51b)
Interest Expense / Debt = 4.75% (Interest Expense 93.9m / Debt 1.97b)
Taxrate = 23.90% (135.0m / 564.9m)
NOPAT = 498.9m (EBIT 655.5m * (1 - 23.90%))
Current Ratio = 2.42 (Total Current Assets 1.23b / Total Current Liabilities 509.5m)
Debt / Equity = 1.02 (Debt 1.97b / totalStockholderEquity, last quarter 1.93b)
Debt / EBITDA = 2.01 (Net Debt 1.75b / EBITDA 870.0m)
Debt / FCF = 3.08 (Net Debt 1.75b / 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 = 18.69% (EBIT 655.5m / Capital Employed (Equity 1.90b + L.T.Debt 1.61b))
RoIC = 12.76% (NOPAT 498.9m / Invested Capital 3.91b)
WACC = 10.05% (E(11.9b)/V(13.9b) * Re(11.12%) + D(1.97b)/V(13.9b) * Rd(4.75%) * (1-Tc(0.24)))
Discount Rate = 11.12% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: -0.06%
[DCF] Terminal Value 72.67% ; FCFF base≈489.0m ; Y1≈560.5m ; Y5≈825.0m
[DCF] Fair Price = 101.8 (EV 9.55b - Net Debt 1.75b = Equity 7.79b / Shares 76.6m; r=10.05% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -6.99 | EPS CAGR: -0.32% | 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=2.11 | Chg30d=+2.64% | Revisions=+33% | Analysts=7
EPS next Quarter (2026-09-30): EPS=1.87 | Chg30d=-2.80% | Revisions=-56% | Analysts=8
EPS current Year (2027-03-31): EPS=6.43 | Chg30d=+6.31% | Revisions=-60% | GrowthEPS=+2.5% | GrowthRev=+13.1%
EPS next Year (2028-03-31): EPS=7.37 | Chg30d=+0.74% | Revisions=-43% | GrowthEPS=+14.6% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: -60%