ADVANCED DRAINAGE SYSTEMS IN (WMS) Fundamental Analysis & Valuation

NYSE:WMS • US00790R1041

Current stock price

147.59 USD
-1.66 (-1.11%)
Last:

This WMS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. WMS Profitability Analysis

1.1 Basic Checks

  • WMS had positive earnings in the past year.
  • 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.
WMS Yearly Net Income VS EBIT VS OCF VS FCFWMS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

1.2 Ratios

  • The Return On Assets of WMS (11.36%) is better than 73.17% of its industry peers.
  • WMS has a better Return On Equity (23.46%) than 75.61% of its industry peers.
  • WMS has a better Return On Invested Capital (13.82%) than 75.61% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WMS is significantly above the industry average of 11.86%.
  • The last Return On Invested Capital (13.82%) for WMS is well below the 3 year average (18.87%), which needs to be investigated, but indicates that WMS had better years and this may not be a problem.
Industry RankSector Rank
ROA 11.36%
ROE 23.46%
ROIC 13.82%
ROA(3y)15.09%
ROA(5y)12.32%
ROE(3y)40.04%
ROE(5y)31.77%
ROIC(3y)18.87%
ROIC(5y)16.65%
WMS Yearly ROA, ROE, ROICWMS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • WMS has a Profit Margin of 15.75%. This is amongst the best in the industry. WMS outperforms 85.37% of its industry peers.
  • WMS's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 22.66%, WMS belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
  • WMS's Operating Margin has improved in the last couple of years.
  • WMS's Gross Margin of 38.67% is fine compared to the rest of the industry. WMS outperforms 68.29% of its industry peers.
  • In the last couple of years the Gross Margin of WMS has grown nicely.
Industry RankSector Rank
OM 22.66%
PM (TTM) 15.75%
GM 38.67%
OM growth 3Y14.94%
OM growth 5YN/A
PM growth 3Y23.21%
PM growth 5YN/A
GM growth 3Y9.24%
GM growth 5Y14.78%
WMS Yearly Profit, Operating, Gross MarginsWMS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

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7

2. WMS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WMS is creating value.
  • WMS has about the same amout of shares outstanding than it did 1 year ago.
  • WMS has more shares outstanding than it did 5 years ago.
  • WMS has a better debt/assets ratio than last year.
WMS Yearly Shares OutstandingWMS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
WMS Yearly Total Debt VS Total AssetsWMS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • WMS has an Altman-Z score of 5.52. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.52, WMS is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
  • The Debt to FCF ratio of WMS is 2.51, which is a good value as it means it would take WMS, 2.51 years of fcf income to pay off all of its debts.
  • WMS's Debt to FCF ratio of 2.51 is fine compared to the rest of the industry. WMS outperforms 68.29% of its industry peers.
  • A Debt/Equity ratio of 0.70 indicates that WMS is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.70, WMS is in line with its industry, outperforming 41.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 2.51
Altman-Z 5.52
ROIC/WACC1.32
WACC10.45%
WMS Yearly LT Debt VS Equity VS FCFWMS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 4.12 indicates that WMS has no problem at all paying its short term obligations.
  • WMS has a better Current ratio (4.12) than 92.68% of its industry peers.
  • WMS has a Quick Ratio of 3.08. This indicates that WMS is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of WMS (3.08) is better than 95.12% of its industry peers.
Industry RankSector Rank
Current Ratio 4.12
Quick Ratio 3.08
WMS Yearly Current Assets VS Current LiabilitesWMS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. WMS Growth Analysis

3.1 Past

  • WMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.64%.
  • 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 1.60% in the last year.
  • The Revenue has been growing by 11.65% on average over the past years. This is quite good.
EPS 1Y (TTM)2.64%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%16.51%
Revenue 1Y (TTM)1.6%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%0.41%

3.2 Future

  • WMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.58% yearly.
  • Based on estimates for the next years, WMS will show a small growth in Revenue. The Revenue will grow by 7.12% on average per year.
EPS Next Y5.69%
EPS Next 2Y7.57%
EPS Next 3Y10.58%
EPS Next 5YN/A
Revenue Next Year2.76%
Revenue Next 2Y7.66%
Revenue Next 3Y7.12%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WMS Yearly Revenue VS EstimatesWMS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
WMS Yearly EPS VS EstimatesWMS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4 6

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2

4. WMS Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.73, the valuation of WMS can be described as rather expensive.
  • 60.98% of the companies in the same industry are cheaper than WMS, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.77. WMS is around the same levels.
  • The Price/Forward Earnings ratio is 21.69, which indicates a rather expensive current valuation of WMS.
  • WMS's Price/Forward Earnings is on the same level as the industry average.
  • WMS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.73
Fwd PE 21.69
WMS Price Earnings VS Forward Price EarningsWMS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as WMS.
  • 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 RankSector Rank
P/FCF 19.92
EV/EBITDA 13.65
WMS Per share dataWMS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WMS does not grow enough to justify the current Price/Earnings ratio.
  • WMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.17
PEG (5Y)0.48
EPS Next 2Y7.57%
EPS Next 3Y10.58%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. WMS Dividend Analysis

5.1 Amount

  • WMS has a yearly dividend return of 0.49%, 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 0.49, WMS pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.49%

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.
  • As WMS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-15.09%
Div Incr Years5
Div Non Decr Years5
WMS Yearly Dividends per shareWMS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 11.58% of the earnings are spent on dividend by WMS. This is a low number and sustainable payout ratio.
DP11.58%
EPS Next 2Y7.57%
EPS Next 3Y10.58%
WMS Yearly Income VS Free CF VS DividendWMS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M
WMS Dividend Payout.WMS Dividend Payout, showing the Payout Ratio.WMS Dividend Payout.PayoutRetained Earnings

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WMS Fundamentals: All Metrics, Ratios and Statistics

ADVANCED DRAINAGE SYSTEMS IN

NYSE:WMS (5/1/2026, 1:00:04 PM)

147.59

-1.66 (-1.11%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Industry Strength22.98
Industry Growth32.92
Earnings (Last)02-05
Earnings (Next)05-21
Inst Owners96.27%
Inst Owner Change1.31%
Ins Owners0.31%
Ins Owner Change-0.21%
Market Cap11.50B
Revenue(TTM)2.99B
Net Income(TTM)470.72M
Analysts82.67
Price Target196.85 (33.38%)
Short Float %3.68%
Short Ratio2.94
Dividend
Industry RankSector Rank
Dividend Yield 0.49%
Yearly Dividend0.64
Dividend Growth(5Y)-15.09%
DP11.58%
Div Incr Years5
Div Non Decr Years5
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.13%
Min EPS beat(2)13.11%
Max EPS beat(2)17.15%
EPS beat(4)3
Avg EPS beat(4)8.55%
Min EPS beat(4)-6.3%
Max EPS beat(4)17.15%
EPS beat(8)4
Avg EPS beat(8)3.7%
EPS beat(12)8
Avg EPS beat(12)11.57%
EPS beat(16)9
Avg EPS beat(16)9.7%
Revenue beat(2)2
Avg Revenue beat(2)2.61%
Min Revenue beat(2)0.17%
Max Revenue beat(2)5.06%
Revenue beat(4)3
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-7.04%
Max Revenue beat(4)5.06%
Revenue beat(8)5
Avg Revenue beat(8)-0.11%
Revenue beat(12)8
Avg Revenue beat(12)1.22%
Revenue beat(16)10
Avg Revenue beat(16)0.86%
PT rev (1m)0.62%
PT rev (3m)11.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.53%
EPS NY rev (1m)0%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.8%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.6%
Valuation
Industry RankSector Rank
PE 23.73
Fwd PE 21.69
P/S 3.85
P/FCF 19.92
P/OCF 14.01
P/B 5.73
P/tB 13.2
EV/EBITDA 13.65
EPS(TTM)6.22
EY4.21%
EPS(NY)6.8
Fwd EY4.61%
FCF(TTM)7.41
FCFY5.02%
OCF(TTM)10.53
OCFY7.14%
SpS38.37
BVpS25.76
TBVpS11.18
PEG (NY)4.17
PEG (5Y)0.48
Graham Number60.0406 (-59.32%)
Profitability
Industry RankSector Rank
ROA 11.36%
ROE 23.46%
ROCE 18.16%
ROIC 13.82%
ROICexc 18.94%
ROICexgc 32.49%
OM 22.66%
PM (TTM) 15.75%
GM 38.67%
FCFM 19.3%
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-Score6
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 2.51
Debt/EBITDA 1.59
Cap/Depr 118.06%
Cap/Sales 8.14%
Interest Coverage 7.8
Cash Conversion 92.85%
Profit Quality 122.6%
Current Ratio 4.12
Quick Ratio 3.08
Altman-Z 5.52
F-Score6
WACC10.45%
ROIC/WACC1.32
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)2.64%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%16.51%
EPS Next Y5.69%
EPS Next 2Y7.57%
EPS Next 3Y10.58%
EPS Next 5YN/A
Revenue 1Y (TTM)1.6%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%0.41%
Revenue Next Year2.76%
Revenue Next 2Y7.66%
Revenue Next 3Y7.12%
Revenue Next 5YN/A
EBIT growth 1Y-0.16%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year35.21%
EBIT Next 3Y17.33%
EBIT Next 5YN/A
FCF growth 1Y1.02%
FCF growth 3Y43.09%
FCF growth 5Y9.09%
OCF growth 1Y9.72%
OCF growth 3Y28.37%
OCF growth 5Y13.69%

ADVANCED DRAINAGE SYSTEMS IN / WMS Fundamental Analysis 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.


What is the profitability of WMS stock?

ADVANCED DRAINAGE SYSTEMS IN (WMS) has a profitability rating of 9 / 10.


How financially healthy is ADVANCED DRAINAGE SYSTEMS IN?

The financial health rating of ADVANCED DRAINAGE SYSTEMS IN (WMS) is 7 / 10.


What is the expected EPS growth for ADVANCED DRAINAGE SYSTEMS IN (WMS) stock?

The Earnings per Share (EPS) of ADVANCED DRAINAGE SYSTEMS IN (WMS) is expected to grow by 5.69% in the next year.