ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
USA - NYSE:WMS - US00790R1041 - Common Stock
140.05 USD
+0.96 (+0.69%)
140.05 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. Both the health and profitability get an excellent rating, making WMS a very profitable company, without any liquidiy or solvency issues. 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.
WMS had positive earnings in each of the past 5 years.
WMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WMS has a better Return On Assets (11.07%) than 73.17% of its industry peers.
With a decent Return On Equity value of 24.60%, WMS is doing good in the industry, outperforming 78.05% of the companies in the same industry.
WMS has a Return On Invested Capital of 14.33%. This is in the better half of the industry: WMS outperforms 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 12.58%.
The 3 year average ROIC (18.87%) for WMS is well above the current ROIC(14.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 24.6% | ||
| ROIC | 14.33% |
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 14.82% is fine compared to the rest of the industry. WMS outperforms 78.05% of its industry peers.
WMS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.19%, WMS belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Operating Margin of WMS has grown nicely.
With a decent Gross Margin value of 37.42%, WMS is doing good in the industry, outperforming 63.41% of the companies in the same industry.
WMS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.19% | ||
| PM (TTM) | 14.82% | ||
| GM | 37.42% |
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.
Compared to 1 year ago, WMS has about the same amount of shares outstanding.
WMS has more shares outstanding than it did 5 years ago.
WMS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.23 indicates that WMS is not in any danger for bankruptcy at the moment.
WMS has a Altman-Z score of 5.23. This is in the better half of the industry: WMS outperforms 63.41% of its industry peers.
The Debt to FCF ratio of WMS is 3.07, which is a good value as it means it would take WMS, 3.07 years of fcf income to pay off all of its debts.
WMS's Debt to FCF ratio of 3.07 is fine compared to the rest of the industry. WMS outperforms 60.98% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that WMS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, WMS is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 5.23 |
ROIC/WACC1.56
WACC9.2%
2.3 Liquidity
WMS has a Current Ratio of 3.22. This indicates that WMS is financially healthy and has no problem in meeting its short term obligations.
WMS has a better Current ratio (3.22) than 85.37% of its industry peers.
WMS has a Quick Ratio of 2.25. This indicates that WMS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.25, WMS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
The earnings per share for WMS have decreased by -8.70% in the last 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 0.24% in the past year.
The Revenue has been growing by 11.65% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.7%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%-5.34%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%1.78%
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 8.81% on average per year.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y-0.52%
EPS Next 2Y5.08%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue Next Year-0.13%
Revenue Next 2Y2.57%
Revenue Next 3Y3.75%
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.
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
The Price/Earnings ratio is 24.27, which indicates a rather expensive current valuation of WMS.
Based on the Price/Earnings ratio, WMS is valued a bit more expensive than 60.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of WMS to the average of the S&P500 Index (26.11), we can say WMS is valued inline with the index average.
WMS is valuated rather expensively with a Price/Forward Earnings ratio of 21.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMS indicates a slightly more expensive valuation: WMS is more expensive than 60.98% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. WMS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.27 | ||
| Fwd PE | 21.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WMS is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, WMS is valued a bit cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.41 | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
WMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y5.08%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, WMS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.27, 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 2.37.
| 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 11.85% of its income as dividend. This is a sustainable payout ratio.
DP11.85%
EPS Next 2Y5.08%
EPS Next 3Y8.81%
140.05
+0.96 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change-0.37%
Ins Owners1.27%
Ins Owner Change0.96%
Market Cap10.89B
Revenue(TTM)2.92B
Net Income(TTM)432.69M
Analysts82.86
Price Target161.53 (15.34%)
Short Float %5.69%
Short Ratio5.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.64
Dividend Growth(5Y)-15.09%
DP11.85%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.96%
Min EPS beat(2)-6.3%
Max EPS beat(2)10.22%
EPS beat(4)1
Avg EPS beat(4)-4.28%
Min EPS beat(4)-11.18%
Max EPS beat(4)10.22%
EPS beat(8)4
Avg EPS beat(8)4.22%
EPS beat(12)6
Avg EPS beat(12)7.26%
EPS beat(16)7
Avg EPS beat(16)5.95%
Revenue beat(2)1
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-7.04%
Max Revenue beat(2)2.17%
Revenue beat(4)2
Avg Revenue beat(4)-2.32%
Min Revenue beat(4)-7.04%
Max Revenue beat(4)2.17%
Revenue beat(8)4
Avg Revenue beat(8)-0.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.44%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)1.57%
PT rev (3m)13.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)0%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.27 | ||
| Fwd PE | 21.57 | ||
| P/S | 3.73 | ||
| P/FCF | 23.41 | ||
| P/OCF | 16.18 | ||
| P/B | 6.19 | ||
| P/tB | 18.27 | ||
| EV/EBITDA | 13.91 |
EPS(TTM)5.77
EY4.12%
EPS(NY)6.49
Fwd EY4.64%
FCF(TTM)5.98
FCFY4.27%
OCF(TTM)8.66
OCFY6.18%
SpS37.54
BVpS22.62
TBVpS7.67
PEG (NY)N/A
PEG (5Y)0.49
Graham Number54.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 24.6% | ||
| ROCE | 18.83% | ||
| ROIC | 14.33% | ||
| ROICexc | 17.6% | ||
| ROICexgc | 30.11% | ||
| OM | 22.19% | ||
| PM (TTM) | 14.82% | ||
| GM | 37.42% | ||
| FCFM | 15.94% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.07 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 108.01% | ||
| Cap/Sales | 7.12% | ||
| Interest Coverage | 7.25 | ||
| Cash Conversion | 80.13% | ||
| Profit Quality | 107.52% | ||
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z | 5.23 |
F-Score6
WACC9.2%
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)-8.7%
EPS 3Y23.13%
EPS 5Y49.4%
EPS Q2Q%-5.34%
EPS Next Y-0.52%
EPS Next 2Y5.08%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue 1Y (TTM)0.24%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%1.78%
Revenue Next Year-0.13%
Revenue Next 2Y2.57%
Revenue Next 3Y3.75%
Revenue Next 5YN/A
EBIT growth 1Y-9.82%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year28.45%
EBIT Next 3Y14.82%
EBIT Next 5YN/A
FCF growth 1Y-12.09%
FCF growth 3Y43.09%
FCF growth 5Y9.09%
OCF growth 1Y-4.13%
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 8 / 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 11.85%.