ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMS - US00790R1041 - Common Stock
148.92 USD
-0.34 (-0.23%)
148.92 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WMS. WMS was compared to 42 industry peers in the Building Products industry. WMS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, WMS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WMS was profitable.
WMS had a positive operating cash flow in the past year.
In the past 5 years WMS has always been profitable.
In the past 5 years WMS always reported a positive cash flow from operatings.
1.2 Ratios
WMS's Return On Assets of 11.24% is fine compared to the rest of the industry. WMS outperforms 73.81% of its industry peers.
WMS's Return On Equity of 24.01% is fine compared to the rest of the industry. WMS outperforms 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.
WMS had an Average Return On Invested Capital over the past 3 years of 18.87%. This is significantly above the industry average of 12.60%.
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 80.95% 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.
In the last couple of years the Operating Margin of WMS has grown nicely.
WMS has a Gross Margin of 38.12%. This is in the better half of the industry: WMS outperforms 69.05% 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
WMS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, WMS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.44 indicates that WMS is not in any danger for bankruptcy at the moment.
WMS has a Altman-Z score of 5.44. This is in the better half of the industry: WMS outperforms 69.05% of its industry peers.
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.
The Debt to FCF ratio of WMS (2.70) is better than 66.67% of its industry peers.
WMS has a Debt/Equity ratio of 0.72. This is a neutral value indicating 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 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 5.44 |
ROIC/WACC1.45
WACC9.75%
2.3 Liquidity
A Current Ratio of 3.48 indicates that WMS has no problem at all paying its short term obligations.
The Current ratio of WMS (3.48) is better than 88.10% of its industry peers.
A Quick Ratio of 2.60 indicates that WMS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.60, WMS belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
The earnings per share for WMS have decreased by -4.28% in the last year.
The Earnings Per Share has been growing by 49.40% on average over the past years. This is a very strong growth
WMS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.48%.
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.
Based on estimates for the next years, WMS will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y2.98%
EPS Next 2Y5.76%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue Next Year1.18%
Revenue Next 2Y4.05%
Revenue Next 3Y4.03%
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.
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
A Price/Earnings ratio of 24.66 indicates a rather expensive valuation of WMS.
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 (26.61), we can say WMS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.64, the valuation of WMS can be described as rather expensive.
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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 22.64 |
4.2 Price Multiples
WMS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WMS is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.88 | ||
| EV/EBITDA | 14.06 |
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)8.29
PEG (5Y)0.5
EPS Next 2Y5.76%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, WMS is not a good candidate for dividend investing.
WMS's Dividend Yield is comparable with the industry average which is at 0.71.
Compared to an average S&P500 Dividend Yield of 1.87, 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 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 2Y5.76%
EPS Next 3Y9.2%
148.92
-0.34 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.83%
Inst Owner Change0.27%
Ins Owners1.28%
Ins Owner Change0.02%
Market Cap11.58B
Revenue(TTM)2.99B
Net Income(TTM)458.33M
Analysts82.86
Price Target172.1 (15.57%)
Short Float %5.2%
Short Ratio5.62
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)8.22%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)3.51%
EPS NY rev (3m)3.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 22.64 | ||
| P/S | 3.88 | ||
| P/FCF | 21.88 | ||
| P/OCF | 15.63 | ||
| P/B | 6.07 | ||
| P/tB | 15.24 | ||
| EV/EBITDA | 14.06 |
EPS(TTM)6.04
EY4.06%
EPS(NY)6.58
Fwd EY4.42%
FCF(TTM)6.81
FCFY4.57%
OCF(TTM)9.53
OCFY6.4%
SpS38.41
BVpS24.55
TBVpS9.77
PEG (NY)8.29
PEG (5Y)0.5
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 | 5.44 |
F-Score5
WACC9.75%
ROIC/WACC1.45
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 Y2.98%
EPS Next 2Y5.76%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue 1Y (TTM)2.48%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%8.66%
Revenue Next Year1.18%
Revenue Next 2Y4.05%
Revenue Next 3Y4.03%
Revenue Next 5YN/A
EBIT growth 1Y-5.79%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year33.48%
EBIT Next 3Y14.74%
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%.