ADVANCED DRAINAGE SYSTEMS IN (WMS) Fundamental Analysis & Valuation

NYSE:WMS • US00790R1041

146.11 USD
-2.89 (-1.94%)
At close: Mar 6, 2026
146.11 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This WMS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

WMS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. WMS is quite expensive at the moment. It does show a decent growth rate. This makes WMS very considerable for quality investing!


Dividend Valuation Growth Profitability Health

9

1. WMS Profitability Analysis

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.
  • WMS had a positive operating cash flow in each of the past 5 years.
WMS Yearly Net Income VS EBIT VS OCF VS FCFWMS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 11.36%, WMS is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 23.46%, WMS is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 13.82%, WMS is in the better half of the industry, outperforming 76.19% 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 11.88%.
  • The 3 year average ROIC (18.87%) for WMS is well above the current ROIC(13.82%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
WMS Yearly ROA, ROE, ROICWMS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • WMS's Profit Margin of 15.75% is amongst the best of the industry. WMS outperforms 88.10% of its industry peers.
  • WMS's Profit Margin has improved in the last couple of years.
  • The Operating Margin of WMS (22.66%) is better than 95.24% of its industry peers.
  • WMS's Operating Margin has improved in the last couple of years.
  • WMS has a Gross Margin of 38.67%. This is in the better half of the industry: WMS outperforms 69.05% of its industry peers.
  • In the last couple of years the Gross Margin of WMS has grown nicely.
Industry RankSector 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%
WMS Yearly Profit, Operating, Gross MarginsWMS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. WMS Health Analysis

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.
  • WMS has a better debt/assets ratio than last year.
WMS Yearly Shares OutstandingWMS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
WMS Yearly Total Debt VS Total AssetsWMS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • WMS has an Altman-Z score of 5.52. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
  • WMS's Altman-Z score of 5.52 is fine compared to the rest of the industry. WMS outperforms 73.81% of its industry peers.
  • The Debt to FCF ratio of WMS is 2.51, which is a good value as it means it would take WMS, 2.51 years of fcf income to pay off all of its debts.
  • WMS's Debt to FCF ratio of 2.51 is fine compared to the rest of the industry. WMS outperforms 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.
  • Looking at the Debt to Equity ratio, with a value of 0.70, WMS is in line with its industry, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 2.51
Altman-Z 5.52
ROIC/WACC1.53
WACC9.05%
WMS Yearly LT Debt VS Equity VS FCFWMS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.3 Liquidity

  • WMS has a Current Ratio of 4.12. This indicates that WMS is financially healthy and has no problem in meeting its short term obligations.
  • WMS's Current ratio of 4.12 is amongst the best of the industry. WMS outperforms 90.48% of its industry peers.
  • A Quick Ratio of 3.08 indicates that WMS has no problem at all paying its short term obligations.
  • The Quick ratio of WMS (3.08) is better than 92.86% of its industry peers.
Industry RankSector Rank
Current Ratio 4.12
Quick Ratio 3.08
WMS Yearly Current Assets VS Current LiabilitesWMS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. WMS Growth Analysis

3.1 Past

  • WMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.64%.
  • WMS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.40% yearly.
  • Looking at the last year, WMS shows a small growth in Revenue. The Revenue has grown by 1.60% in the last year.
  • The Revenue has been growing by 11.65% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 9.20% on average over the next years. This is quite good.
  • Based on estimates for the next years, WMS will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y2.83%
EPS Next 2Y5.62%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue Next Year2.86%
Revenue Next 2Y7.82%
Revenue Next 3Y7.2%
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.
WMS Yearly Revenue VS EstimatesWMS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
WMS Yearly EPS VS EstimatesWMS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4 6

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Find the best growth stocksShow best growing peers

2

4. WMS Valuation Analysis

4.1 Price/Earnings Ratio

  • WMS is valuated rather expensively with a Price/Earnings ratio of 23.49.
  • WMS's Price/Earnings ratio is a bit more expensive when compared to the industry. WMS is more expensive than 61.90% of the companies in the same industry.
  • WMS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
  • The Price/Forward Earnings ratio is 22.27, which indicates a rather expensive current valuation of WMS.
  • WMS's Price/Forward Earnings ratio is in line with the industry average.
  • WMS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 23.49
Fwd PE 22.27
WMS Price Earnings VS Forward Price EarningsWMS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • WMS's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 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 RankSector Rank
P/FCF 19.72
EV/EBITDA 13.63
WMS Per share dataWMS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • WMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)8.29
PEG (5Y)0.48
EPS Next 2Y5.62%
EPS Next 3Y9.2%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. WMS Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.45%, WMS is not a good candidate for dividend investing.
  • WMS's Dividend Yield is comparable with the industry average which is at 0.70.
  • Compared to an average S&P500 Dividend Yield of 1.82, WMS's dividend is way lower than the S&P500 average.
Industry RankSector 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
WMS Yearly Dividends per shareWMS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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%
WMS Yearly Income VS Free CF VS DividendWMS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M
WMS Dividend Payout.WMS Dividend Payout, showing the Payout Ratio.WMS Dividend Payout.PayoutRetained Earnings

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WMS Fundamentals: All Metrics, Ratios and Statistics

ADVANCED DRAINAGE SYSTEMS IN

NYSE:WMS (3/6/2026, 8:04:00 PM)

After market: 146.11 0 (0%)

146.11

-2.89 (-1.94%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)02-05
Earnings (Next)05-13
Inst Owners96.08%
Inst Owner Change-2.3%
Ins Owners1.28%
Ins Owner Change-0.2%
Market Cap11.38B
Revenue(TTM)2.99B
Net Income(TTM)470.72M
Analysts82.86
Price Target195.64 (33.9%)
Short Float %3.64%
Short Ratio3.89
Dividend
Industry RankSector 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
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)10.87%
PT rev (3m)13.67%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)5.11%
Revenue NQ rev (3m)5.07%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)3%
Valuation
Industry RankSector Rank
PE 23.49
Fwd PE 22.27
P/S 3.81
P/FCF 19.72
P/OCF 13.87
P/B 5.67
P/tB 13.07
EV/EBITDA 13.63
EPS(TTM)6.22
EY4.26%
EPS(NY)6.56
Fwd EY4.49%
FCF(TTM)7.41
FCFY5.07%
OCF(TTM)10.53
OCFY7.21%
SpS38.37
BVpS25.76
TBVpS11.18
PEG (NY)8.29
PEG (5Y)0.48
Graham Number60.04
Profitability
Industry RankSector 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 RankSector 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 5.52
F-Score6
WACC9.05%
ROIC/WACC1.53
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 Year2.86%
Revenue Next 2Y7.82%
Revenue Next 3Y7.2%
Revenue Next 5YN/A
EBIT growth 1Y-0.16%
EBIT growth 3Y16.77%
EBIT growth 5YN/A
EBIT Next Year35.96%
EBIT Next 3Y17.47%
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 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 11.58%.