ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
USA - NYSE:WMS - US00790R1041 - Common Stock
141.49 USD
-5.29 (-3.6%)
141.49 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.
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 better Return On Assets (11.07%) than 73.17% of its industry peers.
WMS's Return On Equity of 24.60% is fine compared to the rest of the industry. WMS outperforms 78.05% of its industry peers.
With a decent Return On Invested Capital value of 14.33%, WMS is doing good in the industry, outperforming 75.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WMS is significantly above the industry average of 12.76%.
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 has a Profit Margin of 14.82%. This is in the better half of the industry: WMS outperforms 78.05% of its industry peers.
In the last couple of years the Profit Margin of WMS has grown nicely.
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.
WMS's Operating Margin has improved in the last couple of years.
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.
In the last couple of years the Gross Margin of WMS has grown nicely.
| 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.
The number of shares outstanding for WMS has been increased compared to 5 years ago.
WMS has a better debt/assets ratio than last year.
2.2 Solvency
WMS has an Altman-Z score of 5.38. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WMS (5.38) is better than 68.29% of its industry peers.
WMS has a debt to FCF ratio of 3.07. This is a good value and a sign of high solvency as WMS would need 3.07 years to pay back of all of its debts.
WMS has a better Debt to FCF ratio (3.07) than 60.98% of its industry peers.
WMS has a Debt/Equity ratio of 0.79. This is a neutral value indicating WMS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, WMS is doing worse than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 5.38 |
ROIC/WACC1.4
WACC10.27%
2.3 Liquidity
A Current Ratio of 3.22 indicates that WMS has no problem at all paying its short term obligations.
The Current ratio of WMS (3.22) is better 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.
WMS's Quick ratio of 2.25 is amongst the best of the industry. WMS outperforms 87.80% of its industry peers.
| 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.
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 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
WMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.83% yearly.
Based on estimates for the next years, WMS will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y-0.83%
EPS Next 2Y5.03%
EPS Next 3Y8.83%
EPS Next 5YN/A
Revenue Next Year-0.07%
Revenue Next 2Y2.62%
Revenue Next 3Y4.55%
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
WMS is valuated rather expensively with a Price/Earnings ratio of 24.52.
WMS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WMS to the average of the S&P500 Index (27.30), we can say WMS is valued inline with the index average.
A Price/Forward Earnings ratio of 21.82 indicates a rather expensive valuation of WMS.
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 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 21.82 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.65 | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
WMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y5.03%
EPS Next 3Y8.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, WMS is not a good candidate for dividend investing.
WMS's Dividend Yield is comparable with the industry average which is at 1.14.
With a Dividend Yield of 0.50, WMS pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 11.85% of its income as dividend. This is a sustainable payout ratio.
DP11.85%
EPS Next 2Y5.03%
EPS Next 3Y8.83%
141.49
-5.29 (-3.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners93.74%
Inst Owner Change3.78%
Ins Owners1.36%
Ins Owner Change0.97%
Market Cap11.00B
Analysts82.86
Price Target159.03 (12.4%)
Short Float %5.85%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)11.76%
PT rev (3m)11.76%
EPS NQ rev (1m)-3.2%
EPS NQ rev (3m)-12.08%
EPS NY rev (1m)1.55%
EPS NY rev (3m)-6.66%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-4.91%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 21.82 | ||
| P/S | 3.77 | ||
| P/FCF | 23.65 | ||
| P/OCF | 16.34 | ||
| P/B | 6.25 | ||
| P/tB | 18.46 | ||
| EV/EBITDA | 14.53 |
EPS(TTM)5.77
EY4.08%
EPS(NY)6.49
Fwd EY4.58%
FCF(TTM)5.98
FCFY4.23%
OCF(TTM)8.66
OCFY6.12%
SpS37.54
BVpS22.62
TBVpS7.67
PEG (NY)N/A
PEG (5Y)0.5
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%
ROICexcg growth 3Y4.7%
ROICexcg 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 | 5.38 |
F-Score6
WACC10.27%
ROIC/WACC1.4
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-0.83%
EPS Next 2Y5.03%
EPS Next 3Y8.83%
EPS Next 5YN/A
Revenue 1Y (TTM)0.24%
Revenue growth 3Y1.6%
Revenue growth 5Y11.65%
Sales Q2Q%1.78%
Revenue Next Year-0.07%
Revenue Next 2Y2.62%
Revenue Next 3Y4.55%
Revenue Next 5YN/A
EBIT growth 1Y-9.82%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year25.5%
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%