ADVANCED DRAINAGE SYSTEMS IN (WMS)
US00790R1041 - Common Stock
WMS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 43 industry peers in the Building Products industry. WMS has an excellent profitability rating, but there are some minor concerns on its financial health. WMS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WMS had positive earnings in the past year.
WMS had a positive operating cash flow in the past year.
Of the past 5 years WMS 4 years were profitable.
WMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 15.85%, WMS belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
The Return On Equity of WMS (41.74%) is better than 97.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.30%, WMS belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
WMS had an Average Return On Invested Capital over the past 3 years of 15.76%. This is in line with the industry average of 14.14%.
The last Return On Invested Capital (19.30%) for WMS is above the 3 year average (15.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.85% | ||
| ROE | 41.74% | ||
| ROIC | 19.3% |
ROA(3y)11.27%
ROA(5y)6.38%
ROE(3y)30.21%
ROE(5y)15.71%
ROIC(3y)15.76%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 17.65%, WMS belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
WMS's Profit Margin has improved in the last couple of years.
WMS has a Operating Margin of 25.23%. This is amongst the best in the industry. WMS outperforms 97.67% of its industry peers.
WMS's Operating Margin has improved in the last couple of years.
WMS has a Gross Margin of 39.34%. This is in the better half of the industry: WMS outperforms 79.07% of its industry peers.
In the last couple of years the Gross Margin of WMS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.23% | ||
| PM (TTM) | 17.65% | ||
| GM | 39.34% |
OM growth 3YN/A
OM growth 5Y24.38%
PM growth 3YN/A
PM growth 5Y31.63%
GM growth 3Y24.42%
GM growth 5Y9.88%
2. Health
2.1 Basic Checks
WMS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WMS has more shares outstanding
The number of shares outstanding for WMS has been increased compared to 5 years ago.
The debt/assets ratio for WMS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.13 indicates that WMS is not in any danger for bankruptcy at the moment.
WMS has a Altman-Z score of 6.13. This is in the better half of the industry: WMS outperforms 72.09% of its industry peers.
WMS has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as WMS would need 2.32 years to pay back of all of its debts.
WMS has a Debt to FCF ratio of 2.32. This is comparable to the rest of the industry: WMS outperforms 55.81% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that WMS has dependencies on debt financing.
WMS has a Debt to Equity ratio of 1.08. This is in the lower half of the industry: WMS underperforms 74.42% of its industry peers.
Even though the debt/equity ratio score it not favorable for WMS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.6
WACC12.1%
2.3 Liquidity
WMS has a Current Ratio of 3.03. This indicates that WMS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.03, WMS belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
A Quick Ratio of 2.04 indicates that WMS has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.04, WMS is doing good in the industry, outperforming 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.33% over the past year.
The Earnings Per Share has been growing by 49.98% on average over the past years. This is a very strong growth
Looking at the last year, WMS shows a decrease in Revenue. The Revenue has decreased by -9.38% in the last year.
The Revenue has been growing by 18.21% on average over the past years. This is quite good.
EPS 1Y (TTM)13.33%
EPS 3Y97.33%
EPS 5Y49.98%
EPS growth Q2Q35.35%
Revenue 1Y (TTM)-9.38%
Revenue growth 3Y22.42%
Revenue growth 5Y18.21%
Revenue growth Q2Q1.09%
3.2 Future
Based on estimates for the next years, WMS will show a small growth in Earnings Per Share. The EPS will grow by 7.69% on average per year.
WMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.07% yearly.
EPS Next Y6.56%
EPS Next 2Y6.97%
EPS Next 3Y7.69%
EPS Next 5YN/A
Revenue Next Year-5.94%
Revenue Next 2Y-0.05%
Revenue Next 3Y2.07%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.73, the valuation of WMS can be described as rather expensive.
62.79% of the companies in the same industry are cheaper than WMS, based on the Price/Earnings ratio.
WMS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.76.
WMS is valuated rather expensively with a Price/Forward Earnings ratio of 22.40.
Based on the Price/Forward Earnings ratio, WMS is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.26. WMS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 22.4 |
4.2 Price Multiples
WMS's Enterprise Value to EBITDA ratio is in line with the industry average.
WMS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.14 | ||
| EV/EBITDA | 14.94 |
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)3.77
PEG (5Y)0.49
EPS Next 2Y6.97%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
WMS has a yearly dividend return of 0.34%, which is pretty low.
Compared to an average industry Dividend Yield of 1.26, WMS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WMS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
The dividend of WMS is nicely growing with an annual growth rate of 9.62%!
WMS has been paying a dividend for at least 10 years, so it has a reliable track record.
WMS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.62%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
8.50% of the earnings are spent on dividend by WMS. This is a low number and sustainable payout ratio.
The dividend of WMS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP8.5%
EPS Next 2Y6.97%
EPS Next 3Y7.69%
ADVANCED DRAINAGE SYSTEMS IN
NYSE:WMS (4/19/2024, 7:24:29 PM)
After market: 155.57 0 (0%)155.57
-1.24 (-0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 22.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.77
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.85% | ||
| ROE | 41.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.23% | ||
| PM (TTM) | 17.65% | ||
| GM | 39.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.33%
EPS 3Y97.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.38%
Revenue growth 3Y22.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y