ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
NYSE:WMS - New York Stock Exchange, Inc. - US00790R1041 - Common Stock - Currency: USD
Overall WMS gets a fundamental rating of 6 out of 10. We evaluated WMS against 41 industry peers in the Building Products industry. WMS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
WMS had positive earnings in each of the past 5 years.
Each year in the past 5 years WMS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.20%, WMS belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
WMS's Return On Equity of 27.82% is amongst the best of the industry. WMS outperforms 82.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.29%, WMS is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WMS is significantly above the industry average of 12.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.2% | ||
| ROE | 27.82% | ||
| ROIC | 15.29% |
ROA(3y)15.09%
ROA(5y)12.32%
ROE(3y)40.04%
ROE(5y)31.77%
ROIC(3y)18.87%
ROIC(5y)16.65%
1.3 Margins
WMS has a Profit Margin of 15.50%. This is amongst the best in the industry. WMS outperforms 80.49% of its industry peers.
WMS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.77%, WMS belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
In the last couple of years the Operating Margin of WMS has grown nicely.
The Gross Margin of WMS (37.68%) is better than 63.41% of its industry peers.
WMS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.77% | ||
| PM (TTM) | 15.5% | ||
| GM | 37.68% |
OM growth 3Y14.94%
OM growth 5YN/A
PM growth 3Y23.21%
PM growth 5YN/A
GM growth 3Y9.24%
GM growth 5Y14.78%
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.
The number of shares outstanding for WMS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WMS has more shares outstanding
WMS has a better debt/assets ratio than last year.
2.2 Solvency
WMS has an Altman-Z score of 5.48. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
WMS has a Altman-Z score of 5.48. This is in the better half of the industry: WMS outperforms 68.29% of its industry peers.
WMS has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as WMS would need 3.87 years to pay back of all of its debts.
WMS has a Debt to FCF ratio (3.87) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.85 indicates that WMS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, WMS is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.49
WACC10.28%
2.3 Liquidity
A Current Ratio of 3.33 indicates that WMS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.33, WMS belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
A Quick Ratio of 2.10 indicates that WMS has no problem at all paying its short term obligations.
WMS's Quick ratio of 2.10 is amongst the best of the industry. WMS outperforms 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
The earnings per share for WMS have decreased by -8.70% in the last year.
Measured over the past years, WMS shows a very strong growth in Earnings Per Share. The EPS has been growing by 49.40% on average per year.
Looking at the last year, WMS shows a small growth in Revenue. The Revenue has grown by 1.04% in the last year.
Measured over the past years, WMS shows a quite strong growth in Revenue. The Revenue has been growing by 11.65% on average per year.
EPS 1Y (TTM)-8.7%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%-5.34%
Revenue 1Y (TTM)1.04%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%1.78%
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 8.83% on average per year.
Based on estimates for the next years, WMS will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y-2.35%
EPS Next 2Y4.18%
EPS Next 3Y8.83%
EPS Next 5YN/A
Revenue Next Year-1.45%
Revenue Next 2Y1.8%
Revenue Next 3Y4.55%
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
WMS is valuated rather expensively with a Price/Earnings ratio of 24.76.
The rest of the industry has a similar Price/Earnings ratio as WMS.
WMS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.85, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.39, the valuation of WMS can be described as rather expensive.
WMS's Price/Forward Earnings is on the same level as the industry average.
WMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 22.39 |
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 | 30.1 | ||
| EV/EBITDA | 14.37 |
4.3 Compensation for Growth
WMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y4.18%
EPS Next 3Y8.83%
5. Dividend
5.1 Amount
WMS has a yearly dividend return of 0.64%, which is pretty low.
Compared to an average industry Dividend Yield of 1.12, WMS has a dividend in line with its industry peers.
With a Dividend Yield of 0.64, WMS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of WMS decreases each year by -15.09%.
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)-15.09%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
11.05% of the earnings are spent on dividend by WMS. This is a low number and sustainable payout ratio.
DP11.05%
EPS Next 2Y4.18%
EPS Next 3Y8.83%
NYSE:WMS (8/20/2025, 1:09:04 PM)
142.87
-1.06 (-0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners93.74%
Inst Owner Change3.81%
Ins Owners1.36%
Ins Owner Change0.95%
Market Cap11.09B
Analysts83.08
Price Target142.29 (-0.41%)
Short Float %6.27%
Short Ratio5.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.64
Dividend Growth(5Y)-15.09%
DP11.05%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.07%
Min EPS beat(2)-9.85%
Max EPS beat(2)-6.3%
EPS beat(4)0
Avg EPS beat(4)-7.27%
Min EPS beat(4)-11.18%
Max EPS beat(4)-1.77%
EPS beat(8)4
Avg EPS beat(8)7.97%
EPS beat(12)6
Avg EPS beat(12)11.14%
EPS beat(16)6
Avg EPS beat(16)3.32%
Revenue beat(2)1
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-7.04%
Max Revenue beat(2)1.35%
Revenue beat(4)1
Avg Revenue beat(4)-3.56%
Min Revenue beat(4)-7.04%
Max Revenue beat(4)1.35%
Revenue beat(8)4
Avg Revenue beat(8)-0.17%
Revenue beat(12)6
Avg Revenue beat(12)-0.17%
Revenue beat(16)9
Avg Revenue beat(16)1.27%
PT rev (1m)0%
PT rev (3m)-3.66%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-10.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.08%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-5.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 22.39 | ||
| P/S | 3.82 | ||
| P/FCF | 30.1 | ||
| P/OCF | 19.08 | ||
| P/B | 6.86 | ||
| P/tB | 24.66 | ||
| EV/EBITDA | 14.37 |
EPS(TTM)5.77
EY4.04%
EPS(NY)6.38
Fwd EY4.47%
FCF(TTM)4.75
FCFY3.32%
OCF(TTM)7.49
OCFY5.24%
SpS37.41
BVpS20.84
TBVpS5.79
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.2% | ||
| ROE | 27.82% | ||
| ROCE | 20.09% | ||
| ROIC | 15.29% | ||
| ROICexc | 17.79% | ||
| ROICexgc | 30.31% | ||
| OM | 22.77% | ||
| PM (TTM) | 15.5% | ||
| GM | 37.68% | ||
| FCFM | 12.69% |
ROA(3y)15.09%
ROA(5y)12.32%
ROE(3y)40.04%
ROE(5y)31.77%
ROIC(3y)18.87%
ROIC(5y)16.65%
ROICexc(3y)21.75%
ROICexc(5y)18.67%
ROICexgc(3y)37.89%
ROICexgc(5y)34.58%
ROCE(3y)24.79%
ROCE(5y)21.88%
ROICexcg growth 3Y4.7%
ROICexcg growth 5YN/A
ROICexc growth 3Y8.01%
ROICexc growth 5YN/A
OM growth 3Y14.94%
OM growth 5YN/A
PM growth 3Y23.21%
PM growth 5YN/A
GM growth 3Y9.24%
GM growth 5Y14.78%
F-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 116.18% | ||
| Cap/Sales | 7.33% | ||
| Interest Coverage | 7.39 | ||
| Cash Conversion | 68.85% | ||
| Profit Quality | 81.87% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 5.48 |
F-Score6
WACC10.28%
ROIC/WACC1.49
Cap/Depr(3y)116.62%
Cap/Depr(5y)101.83%
Cap/Sales(3y)6.39%
Cap/Sales(5y)5.7%
Profit Quality(3y)97.76%
Profit Quality(5y)109.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.7%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%-5.34%
EPS Next Y-2.35%
EPS Next 2Y4.18%
EPS Next 3Y8.83%
EPS Next 5YN/A
Revenue 1Y (TTM)1.04%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%1.78%
Revenue Next Year-1.45%
Revenue Next 2Y1.8%
Revenue Next 3Y4.55%
Revenue Next 5YN/A
EBIT growth 1Y-8.63%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year25.5%
EBIT Next 3Y14.82%
EBIT Next 5YN/A
FCF growth 1Y-31%
FCF growth 3Y43.09%
FCF growth 5Y9.09%
OCF growth 1Y-19%
OCF growth 3Y28.37%
OCF growth 5Y13.69%