ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
USA - NYSE:WMS - US00790R1041 - Common Stock
141.95 USD
-0.6 (-0.42%)
141.95 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. 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
WMS had positive earnings in the past year.
In the past year WMS had a positive cash flow from operations.
In the past 5 years WMS has always been profitable.
Each year in the past 5 years WMS had a positive operating cash flow.
1.2 Ratios
WMS has a Return On Assets of 11.07%. This is in the better half of the industry: WMS outperforms 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.
Looking at the Return On Invested Capital, with a value of 14.33%, WMS is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of WMS (14.82%) is better than 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.
WMS's Gross Margin of 37.42% is fine compared to the rest of the industry. WMS outperforms 63.41% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WMS is creating value.
WMS has about the same amout of shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 5.29 indicates that WMS is not in any danger for bankruptcy at the moment.
The Altman-Z score of WMS (5.29) is better than 65.85% 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 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 | 5.29 |
ROIC/WACC1.39
WACC10.33%
2.3 Liquidity
A Current Ratio of 3.22 indicates that WMS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.22, WMS belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
A Quick Ratio of 2.25 indicates that WMS has no problem at all paying 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.
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.
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)-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.
WMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.75% yearly.
EPS Next Y-0.52%
EPS Next 2Y5.08%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue Next Year-0.07%
Revenue Next 2Y2.62%
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
A Price/Earnings ratio of 24.60 indicates a rather expensive valuation of WMS.
60.98% of the companies in the same industry are cheaper than WMS, based on the Price/Earnings ratio.
WMS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.86 indicates a rather expensive valuation of WMS.
Based on the Price/Forward Earnings ratio, WMS is valued a bit more expensive than 60.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. WMS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.6 | ||
| Fwd PE | 21.86 |
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 | 23.72 | ||
| EV/EBITDA | 14.14 |
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 2Y5.08%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, WMS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.20, WMS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, WMS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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
11.85% of the earnings are spent on dividend by WMS. This is a low number and sustainable payout ratio.
DP11.85%
EPS Next 2Y5.08%
EPS Next 3Y8.81%
141.95
-0.6 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change3.77%
Ins Owners1.27%
Ins Owner Change0.96%
Market Cap11.04B
Analysts82.86
Price Target159.03 (12.03%)
Short Float %5.39%
Short Ratio4.54
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)1.48%
PT rev (3m)11.76%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)0.32%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.6 | ||
| Fwd PE | 21.86 | ||
| P/S | 3.78 | ||
| P/FCF | 23.72 | ||
| P/OCF | 16.4 | ||
| P/B | 6.27 | ||
| P/tB | 18.52 | ||
| EV/EBITDA | 14.14 |
EPS(TTM)5.77
EY4.06%
EPS(NY)6.49
Fwd EY4.57%
FCF(TTM)5.98
FCFY4.22%
OCF(TTM)8.66
OCFY6.1%
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 | 5.29 |
F-Score6
WACC10.33%
ROIC/WACC1.39
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-0.07%
Revenue Next 2Y2.62%
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 3Y13.7%
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%