ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMS - US00790R1041 - Common Stock
149.63 USD
+4.8 (+3.31%)
149.63 USD
0 (0%)
WMS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. WMS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WMS is valied quite expensively at the moment, while it does show a decent growth rate.
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 each of the past 5 years.
In the past 5 years WMS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 11.24%, WMS is doing good in the industry, outperforming 73.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.01%, WMS is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
With a decent Return On Invested Capital value of 14.11%, WMS is doing good in the industry, outperforming 73.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WMS is significantly above the industry average of 12.61%.
The 3 year average ROIC (18.87%) for WMS is well above the current ROIC(14.11%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 24.01% | ||
| ROIC | 14.11% |
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 15.35%. This is amongst the best in the industry. WMS outperforms 80.95% of its industry peers.
WMS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.33%, WMS belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Operating Margin of WMS has grown nicely.
Looking at the Gross Margin, with a value of 38.12%, WMS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of WMS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.33% | ||
| PM (TTM) | 15.35% | ||
| GM | 38.12% |
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
WMS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for WMS remains at a similar level compared to 1 year ago.
The number of shares outstanding for WMS has been increased compared to 5 years ago.
WMS has a better debt/assets ratio than last year.
2.2 Solvency
WMS has an Altman-Z score of 5.34. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
WMS has a Altman-Z score of 5.34. This is in the better half of the industry: WMS outperforms 66.67% of its industry peers.
WMS has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as WMS would need 2.70 years to pay back of all of its debts.
WMS's Debt to FCF ratio of 2.70 is fine compared to the rest of the industry. WMS outperforms 66.67% of its industry peers.
WMS has a Debt/Equity ratio of 0.72. This is a neutral value indicating WMS is somewhat dependend on debt financing.
WMS's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. WMS is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.56
WACC9.07%
2.3 Liquidity
WMS has a Current Ratio of 3.48. This indicates that WMS is financially healthy and has no problem in meeting its short term obligations.
WMS has a better Current ratio (3.48) than 88.10% of its industry peers.
WMS has a Quick Ratio of 2.60. This indicates that WMS is financially healthy and has no problem in meeting its short term obligations.
WMS's Quick ratio of 2.60 is amongst the best of the industry. WMS outperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
WMS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.28%.
The Earnings Per Share has been growing by 49.40% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.48% in the past 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)-4.28%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%15.88%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%8.66%
3.2 Future
The Earnings Per Share is expected to grow by 9.20% on average over the next years. This is quite good.
Based on estimates for the next years, WMS will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y2.98%
EPS Next 2Y5.76%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue Next Year1.18%
Revenue Next 2Y4.05%
Revenue Next 3Y4.03%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.77 indicates a rather expensive valuation of WMS.
61.90% 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 26.60.
Based on the Price/Forward Earnings ratio of 22.75, the valuation of WMS can be described as rather expensive.
WMS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.23. WMS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 22.75 |
4.2 Price Multiples
WMS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.99 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)8.33
PEG (5Y)0.5
EPS Next 2Y5.76%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
WMS has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 0.72, WMS has a dividend in line with its industry peers.
With a Dividend Yield of 0.52, WMS pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
WMS pays out 11.54% of its income as dividend. This is a sustainable payout ratio.
DP11.54%
EPS Next 2Y5.76%
EPS Next 3Y9.2%
149.63
+4.8 (+3.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.83%
Inst Owner Change0.27%
Ins Owners1.28%
Ins Owner Change0.02%
Market Cap11.64B
Revenue(TTM)2.99B
Net Income(TTM)458.33M
Analysts82.86
Price Target175.03 (16.98%)
Short Float %4.71%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.64
Dividend Growth(5Y)-15.09%
DP11.54%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.68%
Min EPS beat(2)10.22%
Max EPS beat(2)17.15%
EPS beat(4)2
Avg EPS beat(4)2.8%
Min EPS beat(4)-9.85%
Max EPS beat(4)17.15%
EPS beat(8)4
Avg EPS beat(8)5.85%
EPS beat(12)7
Avg EPS beat(12)9.19%
EPS beat(16)8
Avg EPS beat(16)8.48%
Revenue beat(2)2
Avg Revenue beat(2)3.62%
Min Revenue beat(2)2.17%
Max Revenue beat(2)5.06%
Revenue beat(4)3
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-7.04%
Max Revenue beat(4)5.06%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)7
Avg Revenue beat(12)0.44%
Revenue beat(16)10
Avg Revenue beat(16)1.44%
PT rev (1m)1.7%
PT rev (3m)10.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)3.51%
EPS NY rev (3m)3.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 22.75 | ||
| P/S | 3.9 | ||
| P/FCF | 21.99 | ||
| P/OCF | 15.7 | ||
| P/B | 6.1 | ||
| P/tB | 15.31 | ||
| EV/EBITDA | 13.67 |
EPS(TTM)6.04
EY4.04%
EPS(NY)6.58
Fwd EY4.4%
FCF(TTM)6.81
FCFY4.55%
OCF(TTM)9.53
OCFY6.37%
SpS38.41
BVpS24.55
TBVpS9.77
PEG (NY)8.33
PEG (5Y)0.5
Graham Number57.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 24.01% | ||
| ROCE | 18.53% | ||
| ROIC | 14.11% | ||
| ROICexc | 18.22% | ||
| ROICexgc | 31.02% | ||
| OM | 22.33% | ||
| PM (TTM) | 15.35% | ||
| GM | 38.12% | ||
| FCFM | 17.72% |
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%
ROICexgc growth 3Y4.7%
ROICexgc 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-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.7 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 104.69% | ||
| Cap/Sales | 7.09% | ||
| Interest Coverage | 7.66 | ||
| Cash Conversion | 85.25% | ||
| Profit Quality | 115.47% | ||
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | 5.34 |
F-Score5
WACC9.07%
ROIC/WACC1.56
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)-4.28%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%15.88%
EPS Next Y2.98%
EPS Next 2Y5.76%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue 1Y (TTM)2.48%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%8.66%
Revenue Next Year1.18%
Revenue Next 2Y4.05%
Revenue Next 3Y4.03%
Revenue Next 5YN/A
EBIT growth 1Y-5.79%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year33.48%
EBIT Next 3Y14.74%
EBIT Next 5YN/A
FCF growth 1Y-4.76%
FCF growth 3Y43.09%
FCF growth 5Y9.09%
OCF growth 1Y1.55%
OCF growth 3Y28.37%
OCF growth 5Y13.69%
ADVANCED DRAINAGE SYSTEMS IN / WMS FAQ
Can you provide the ChartMill fundamental rating for ADVANCED DRAINAGE SYSTEMS IN?
ChartMill assigns a fundamental rating of 6 / 10 to WMS.
Can you provide the valuation status for ADVANCED DRAINAGE SYSTEMS IN?
ChartMill assigns a valuation rating of 2 / 10 to ADVANCED DRAINAGE SYSTEMS IN (WMS). This can be considered as Overvalued.
Can you provide the profitability details for ADVANCED DRAINAGE SYSTEMS IN?
ADVANCED DRAINAGE SYSTEMS IN (WMS) has a profitability rating of 9 / 10.
Can you provide the financial health for WMS stock?
The financial health rating of ADVANCED DRAINAGE SYSTEMS IN (WMS) is 7 / 10.
Can you provide the dividend sustainability for WMS stock?
The dividend rating of ADVANCED DRAINAGE SYSTEMS IN (WMS) is 3 / 10 and the dividend payout ratio is 11.54%.