ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WMS • US00790R1041
153.22 USD
+1.24 (+0.82%)
At close: Jan 29, 2026
153.22 USD
0 (0%)
After Hours: 1/29/2026, 8:04:00 PM
Overall WMS gets a fundamental rating of 6 out of 10. We evaluated WMS against 42 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
- WMS had positive earnings in the past year.
- In the past year WMS had a positive cash flow from operations.
- Each year in the past 5 years WMS has been profitable.
- WMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WMS has a Return On Assets of 11.24%. This is in the better half of the industry: WMS outperforms 73.81% of its industry peers.
- WMS has a better Return On Equity (24.01%) than 73.81% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for WMS is significantly above the industry average of 12.68%.
- The last Return On Invested Capital (14.11%) 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 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's Profit Margin of 15.35% is amongst the best of the industry. WMS outperforms 80.95% of its industry peers.
- In the last couple of years the Profit Margin of WMS has grown nicely.
- WMS has a Operating Margin of 22.33%. This is amongst the best in the industry. WMS outperforms 95.24% of its industry peers.
- WMS's Operating Margin has improved in the last couple of years.
- WMS's Gross Margin of 38.12% is fine compared to the rest of the industry. WMS outperforms 66.67% of its industry peers.
- 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
- 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
- An Altman-Z score of 5.52 indicates that WMS is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.52, WMS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.70, WMS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- WMS has a Debt/Equity ratio of 0.72. This is a neutral value indicating WMS is somewhat dependend on debt financing.
- The Debt to Equity ratio of WMS (0.72) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 5.52 |
ROIC/WACC1.55
WACC9.12%
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.
- The Current ratio of WMS (3.48) is better than 85.71% 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.
- With an excellent Quick ratio value of 2.60, WMS belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
| 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.
- WMS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.65% yearly.
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 9.20% on average per year.
- WMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y2.83%
EPS Next 2Y5.62%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue Next Year1.14%
Revenue Next 2Y3.97%
Revenue Next 3Y4.01%
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 25.37 indicates a quite expensive valuation of WMS.
- Based on the Price/Earnings ratio, WMS is valued a bit more expensive than 64.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, WMS is valued at the same level.
- WMS is valuated rather expensively with a Price/Forward Earnings ratio of 23.36.
- The rest of the industry has a similar Price/Forward Earnings ratio as WMS.
- WMS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.37 | ||
| Fwd PE | 23.36 |
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 | 22.51 | ||
| EV/EBITDA | 14.42 |
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)8.96
PEG (5Y)0.51
EPS Next 2Y5.62%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
- WMS has a yearly dividend return of 0.45%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.66, WMS has a dividend in line with its industry peers.
- With a Dividend Yield of 0.45, WMS pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 2Y5.62%
EPS Next 3Y9.2%
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%.