ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
NYSE:WMS - New York Stock Exchange, Inc. - US00790R1041 - Common Stock - Currency: USD
WMS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. WMS scores excellent on profitability, but there are some minor concerns on its financial health. WMS does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year WMS was profitable.
In the past year WMS had a positive cash flow from operations.
WMS had positive earnings in 4 of the past 5 years.
Of the past 5 years WMS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WMS (12.99%) is better than 76.19% of its industry peers.
Looking at the Return On Equity, with a value of 30.26%, WMS belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
WMS has a better Return On Invested Capital (16.18%) than 78.57% of its industry peers.
WMS had an Average Return On Invested Capital over the past 3 years of 18.56%. This is significantly above the industry average of 12.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.99% | ||
| ROE | 30.26% | ||
| ROIC | 16.18% |
ROA(3y)13.91%
ROA(5y)8.16%
ROE(3y)37.79%
ROE(5y)20.91%
ROIC(3y)18.56%
ROIC(5y)N/A
1.3 Margins
WMS has a better Profit Margin (15.90%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of WMS has grown nicely.
WMS has a Operating Margin of 23.06%. This is amongst the best in the industry. WMS outperforms 95.24% of its industry peers.
WMS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 38.06%, WMS is doing good in the industry, outperforming 69.05% of the companies in the same industry.
WMS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.06% | ||
| PM (TTM) | 15.9% | ||
| GM | 38.06% |
OM growth 3Y12.7%
OM growth 5Y21.26%
PM growth 3Y23.79%
PM growth 5Y28.47%
GM growth 3Y4.63%
GM growth 5Y11.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WMS is creating value.
WMS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
WMS has an Altman-Z score of 4.79. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.79, WMS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
The Debt to FCF ratio of WMS is 4.10, which is a neutral value as it means it would take WMS, 4.10 years of fcf income to pay off all of its debts.
WMS's Debt to FCF ratio of 4.10 is in line compared to the rest of the industry. WMS outperforms 42.86% of its industry peers.
WMS has a Debt/Equity ratio of 0.88. This is a neutral value indicating WMS is somewhat dependend on debt financing.
The Debt to Equity ratio of WMS (0.88) is worse than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.65
WACC9.78%
2.3 Liquidity
A Current Ratio of 3.21 indicates that WMS has no problem at all paying its short term obligations.
WMS's Current ratio of 3.21 is amongst the best of the industry. WMS outperforms 80.95% of its industry peers.
WMS has a Quick Ratio of 1.98. This is a normal value and indicates that WMS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WMS (1.98) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
WMS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.70%.
WMS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.40% yearly.
EPS 1Y (TTM)-8.7%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%-14.88%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.82%
3.2 Future
Based on estimates for the next years, WMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.34% on average per year.
WMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.16% yearly.
EPS Next Y6.24%
EPS Next 2Y9.68%
EPS Next 3Y10.34%
EPS Next 5YN/A
Revenue Next Year4.3%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.71 indicates a rather expensive valuation of WMS.
Compared to the rest of the industry, the Price/Earnings ratio of WMS is on the same level as its industry peers.
WMS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
WMS is valuated rather expensively with a Price/Forward Earnings ratio of 17.61.
WMS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. WMS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WMS indicates a somewhat cheap valuation: WMS is cheaper than 61.90% of the companies listed in the same industry.
WMS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.8 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WMS may justify a higher PE ratio.
PEG (NY)3
PEG (5Y)0.38
EPS Next 2Y9.68%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
WMS has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 1.16, WMS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, WMS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of WMS has a limited annual growth rate of 4.20%.
WMS has paid a dividend for at least 10 years, which is a reliable track record.
WMS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.2%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
WMS pays out 10.30% of its income as dividend. This is a sustainable payout ratio.
WMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.3%
EPS Next 2Y9.68%
EPS Next 3Y10.34%
109.99
-1.01 (-0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners91.08%
Inst Owner Change1.83%
Ins Owners1.46%
Ins Owner Change0.6%
Market Cap8.53B
Analysts83.08
Price Target147.7 (34.28%)
Short Float %3.88%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend0.56
Dividend Growth(5Y)4.2%
DP10.3%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.52%
Min EPS beat(2)-11.18%
Max EPS beat(2)-9.85%
EPS beat(4)1
Avg EPS beat(4)-1.15%
Min EPS beat(4)-11.18%
Max EPS beat(4)18.22%
EPS beat(8)5
Avg EPS beat(8)13.08%
EPS beat(12)6
Avg EPS beat(12)10.08%
EPS beat(16)6
Avg EPS beat(16)1.95%
Revenue beat(2)1
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-5.77%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-5.77%
Max Revenue beat(4)5.98%
Revenue beat(8)5
Avg Revenue beat(8)1.79%
Revenue beat(12)7
Avg Revenue beat(12)1.11%
Revenue beat(16)10
Avg Revenue beat(16)2.32%
PT rev (1m)-7.38%
PT rev (3m)-9.88%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-2.39%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 17.61 | ||
| P/S | 2.9 | ||
| P/FCF | 24.8 | ||
| P/OCF | 15.3 | ||
| P/B | 5.52 | ||
| P/tB | 23.49 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)5.88
EY5.35%
EPS(NY)6.25
Fwd EY5.68%
FCF(TTM)4.43
FCFY4.03%
OCF(TTM)7.19
OCFY6.54%
SpS37.92
BVpS19.93
TBVpS4.68
PEG (NY)3
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.99% | ||
| ROE | 30.26% | ||
| ROCE | 21.11% | ||
| ROIC | 16.18% | ||
| ROICexc | 19.08% | ||
| ROICexgc | 33.71% | ||
| OM | 23.06% | ||
| PM (TTM) | 15.9% | ||
| GM | 38.06% | ||
| FCFM | 11.69% |
ROA(3y)13.91%
ROA(5y)8.16%
ROE(3y)37.79%
ROE(5y)20.91%
ROIC(3y)18.56%
ROIC(5y)N/A
ROICexc(3y)20.66%
ROICexc(5y)N/A
ROICexgc(3y)36.83%
ROICexgc(5y)N/A
ROCE(3y)24.22%
ROCE(5y)N/A
ROICexcg growth 3Y6.99%
ROICexcg growth 5Y21.79%
ROICexc growth 3Y19.02%
ROICexc growth 5Y13.98%
OM growth 3Y12.7%
OM growth 5Y21.26%
PM growth 3Y23.79%
PM growth 5Y28.47%
GM growth 3Y4.63%
GM growth 5Y11.04%
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 121.11% | ||
| Cap/Sales | 7.27% | ||
| Interest Coverage | 7.55 | ||
| Cash Conversion | 65.25% | ||
| Profit Quality | 73.55% | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 4.79 |
F-Score6
WACC9.78%
ROIC/WACC1.65
Cap/Depr(3y)112.95%
Cap/Depr(5y)89.43%
Cap/Sales(3y)5.74%
Cap/Sales(5y)5.05%
Profit Quality(3y)88.74%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.7%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%-14.88%
EPS Next Y6.24%
EPS Next 2Y9.68%
EPS Next 3Y10.34%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.82%
Revenue Next Year4.3%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.25%
EBIT growth 3Y27.55%
EBIT growth 5Y40.33%
EBIT Next Year22.16%
EBIT Next 3Y11.57%
EBIT Next 5YN/A
FCF growth 1Y-39.2%
FCF growth 3Y12.67%
FCF growth 5Y37.59%
OCF growth 1Y-24.76%
OCF growth 3Y16.66%
OCF growth 5Y36.46%