ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMS - US00790R1041 - Common Stock
153.49 USD
+1.61 (+1.06%)
153.49 USD
0 (0%)
Taking everything into account, WMS scores 6 out of 10 in our fundamental rating. WMS was compared to 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 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.
WMS had a positive operating cash flow in the past year.
Each year in the past 5 years WMS has been profitable.
Each year in the past 5 years WMS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 11.24%, WMS is doing good in the industry, outperforming 73.17% of the companies in the same industry.
WMS has a Return On Equity of 24.01%. This is in the better half of the industry: WMS outperforms 73.17% of its industry peers.
WMS has a Return On Invested Capital of 14.11%. This is in the better half of the industry: WMS outperforms 73.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WMS is significantly above the industry average of 12.49%.
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
The Profit Margin of WMS (15.35%) is better than 80.49% of its industry peers.
In the last couple of years the Profit Margin of WMS has grown nicely.
WMS's Operating Margin of 22.33% is amongst the best of the industry. WMS outperforms 95.12% of its industry peers.
In the last couple of years the Operating Margin of WMS has grown nicely.
WMS has a better Gross Margin (38.12%) than 68.29% of its industry peers.
WMS's Gross Margin has improved in the last couple of years.
| 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
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.
WMS has more shares outstanding than it did 5 years ago.
WMS has a better debt/assets ratio than last year.
2.2 Solvency
WMS has an Altman-Z score of 5.53. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
WMS has a better Altman-Z score (5.53) than 73.17% of its industry peers.
The Debt to FCF ratio of WMS is 2.70, which is a good value as it means it would take WMS, 2.70 years of fcf income to pay off all of its debts.
WMS's Debt to FCF ratio of 2.70 is fine compared to the rest of the industry. WMS outperforms 65.85% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that WMS is somewhat dependend on debt financing.
WMS has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: WMS underperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 5.53 |
ROIC/WACC1.48
WACC9.53%
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 Current ratio of 3.48. This is amongst the best in the industry. WMS outperforms 87.80% 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 90.24% 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%.
WMS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.40% yearly.
Looking at the last year, WMS shows a small growth in Revenue. The Revenue has grown by 2.48% 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)-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
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.
WMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y-0.52%
EPS Next 2Y5.08%
EPS Next 3Y8.83%
EPS Next 5YN/A
Revenue Next Year-0.13%
Revenue Next 2Y2.57%
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
A Price/Earnings ratio of 25.41 indicates a quite expensive valuation of WMS.
WMS's Price/Earnings ratio is a bit more expensive when compared to the industry. WMS is more expensive than 63.41% of the companies in the same industry.
WMS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 23.64, which indicates a rather expensive current valuation of WMS.
Based on the Price/Forward Earnings ratio, WMS is valued a bit more expensive than 65.85% of the companies in the same industry.
WMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 23.64 |
4.2 Price Multiples
WMS's Enterprise Value to EBITDA is on the same level as the industry average.
60.98% of the companies in the same industry are more expensive than WMS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.55 | ||
| EV/EBITDA | 14.44 |
4.3 Compensation for Growth
WMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y5.08%
EPS Next 3Y8.83%
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 1.41, WMS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, WMS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of WMS decreases each year by -15.09%.
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)-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 2Y5.08%
EPS Next 3Y8.83%
153.49
+1.61 (+1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change0.31%
Ins Owners1.27%
Ins Owner Change0.01%
Market Cap11.93B
Revenue(TTM)2.99B
Net Income(TTM)458.33M
Analysts82.86
Price Target172.1 (12.12%)
Short Float %6.02%
Short Ratio5.72
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-Date
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)6.54%
PT rev (3m)9.82%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 23.64 | ||
| P/S | 4 | ||
| P/FCF | 22.55 | ||
| P/OCF | 16.1 | ||
| P/B | 6.25 | ||
| P/tB | 15.71 | ||
| EV/EBITDA | 14.44 |
EPS(TTM)6.04
EY3.94%
EPS(NY)6.49
Fwd EY4.23%
FCF(TTM)6.81
FCFY4.43%
OCF(TTM)9.53
OCFY6.21%
SpS38.41
BVpS24.55
TBVpS9.77
PEG (NY)N/A
PEG (5Y)0.51
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 | 5.53 |
F-Score5
WACC9.53%
ROIC/WACC1.48
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 Y-0.52%
EPS Next 2Y5.08%
EPS Next 3Y8.83%
EPS Next 5YN/A
Revenue 1Y (TTM)2.48%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%8.66%
Revenue Next Year-0.13%
Revenue Next 2Y2.57%
Revenue Next 3Y4.55%
Revenue Next 5YN/A
EBIT growth 1Y-5.79%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year28.45%
EBIT Next 3Y14.82%
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.
What is the valuation status for WMS stock?
ChartMill assigns a valuation rating of 3 / 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.
What is the financial health of ADVANCED DRAINAGE SYSTEMS IN (WMS) stock?
The financial health rating of ADVANCED DRAINAGE SYSTEMS IN (WMS) is 7 / 10.
Is the dividend of ADVANCED DRAINAGE SYSTEMS IN sustainable?
The dividend rating of ADVANCED DRAINAGE SYSTEMS IN (WMS) is 3 / 10 and the dividend payout ratio is 11.54%.