ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
NYSE:WMS • US00790R1041
170.61 USD
-0.51 (-0.3%)
At close: Feb 20, 2026
170.61 USD
0 (0%)
After Hours: 2/20/2026, 8:10:39 PM
Taking everything into account, WMS scores 6 out of 10 in our fundamental rating. WMS was compared to 42 industry peers in the Building Products industry. WMS gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, WMS is valued expensive at the moment. This makes WMS very considerable for quality investing!
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.
- Each year in the past 5 years WMS has been profitable.
- In the past 5 years WMS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of WMS (11.36%) is better than 76.19% of its industry peers.
- Looking at the Return On Equity, with a value of 23.46%, WMS is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
- WMS has a better Return On Invested Capital (13.82%) than 76.19% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WMS is significantly above the industry average of 11.95%.
- 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 Rank | Sector 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%
1.3 Margins
- WMS has a Profit Margin of 15.75%. This is amongst the best in the industry. WMS outperforms 88.10% 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 22.66%, WMS belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
- WMS's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 38.67%, WMS is doing good in the industry, outperforming 69.05% 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 | 22.66% | ||
| 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WMS 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.
- Compared to 1 year ago, WMS has an improved debt to assets ratio.
2.2 Solvency
- WMS has an Altman-Z score of 6.00. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
- WMS has a better Altman-Z score (6.00) than 80.95% of its industry peers.
- WMS has a debt to FCF ratio of 2.51. This is a good value and a sign of high solvency as WMS would need 2.51 years to pay back of all of its debts.
- WMS has a better Debt to FCF ratio (2.51) than 69.05% of its industry peers.
- WMS has a Debt/Equity ratio of 0.70. This is a neutral value indicating WMS is somewhat dependend on debt financing.
- WMS has a Debt to Equity ratio (0.70) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 6 |
ROIC/WACC1.42
WACC9.72%
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 Current ratio of 4.12. This is amongst the best in the industry. WMS outperforms 90.48% 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 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.12 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.64% over the past 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.
- The Revenue has been growing slightly by 1.60% 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)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 9.20% yearly.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- Based on the Price/Earnings ratio of 27.43, the valuation of WMS can be described as expensive.
- Based on the Price/Earnings ratio, WMS is valued a bit more expensive than 61.90% of the companies in the same industry.
- When comparing the Price/Earnings ratio of WMS to the average of the S&P500 Index (26.99), we can say WMS is valued inline with the index average.
- A Price/Forward Earnings ratio of 26.01 indicates a quite expensive valuation of WMS.
- Based on the Price/Forward Earnings ratio, WMS is valued a bit more expensive than 61.90% of the companies in the same industry.
- WMS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 26.01 |
4.2 Price Multiples
- WMS's Enterprise Value to EBITDA ratio is in line with the industry average.
- WMS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.03 | ||
| EV/EBITDA | 15.58 |
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)9.68
PEG (5Y)0.56
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.
- WMS's Dividend Yield is comparable with the industry average which is at 0.63.
- Compared to an average S&P500 Dividend Yield of 1.81, WMS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 11.58% of its income as dividend. This is a sustainable payout ratio.
DP11.58%
EPS Next 2Y5.62%
EPS Next 3Y9.2%
170.61
-0.51 (-0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-13 2026-05-13/bmo
Inst Owners98.89%
Inst Owner Change-2.08%
Ins Owners1.28%
Ins Owner Change-0.2%
Market Cap13.29B
Revenue(TTM)2.99B
Net Income(TTM)470.72M
Analysts82.86
Price Target179.42 (5.16%)
Short Float %4.68%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.64
Dividend Growth(5Y)-15.09%
DP11.58%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-02 2026-03-02 (0.18)
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)2.51%
PT rev (3m)11.07%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-2%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)4.65%
Revenue NQ rev (3m)3.99%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 26.01 | ||
| P/S | 4.45 | ||
| P/FCF | 23.03 | ||
| P/OCF | 16.2 | ||
| P/B | 6.62 | ||
| P/tB | 15.26 | ||
| EV/EBITDA | 15.58 |
EPS(TTM)6.22
EY3.65%
EPS(NY)6.56
Fwd EY3.84%
FCF(TTM)7.41
FCFY4.34%
OCF(TTM)10.53
OCFY6.17%
SpS38.37
BVpS25.76
TBVpS11.18
PEG (NY)9.68
PEG (5Y)0.56
Graham Number60.04
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6 |
F-Score6
WACC9.72%
ROIC/WACC1.42
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 Y2.83%
EPS Next 2Y5.62%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue 1Y (TTM)1.6%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%0.41%
Revenue Next Year1.14%
Revenue Next 2Y3.97%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
EBIT growth 1Y-0.16%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year33.42%
EBIT Next 3Y14.78%
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 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 8 / 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 11.58%.