ADVANCED DRAINAGE SYSTEMS IN (WMS) Stock Fundamental Analysis
NYSE:WMS - New York Stock Exchange, Inc. - US00790R1041 - Common Stock
We assign a fundamental rating of 6 out of 10 to WMS. WMS was compared to 41 industry peers in the Building Products industry. WMS has an excellent profitability rating, but there are some minor concerns on its financial health. WMS is not valued too expensively and it also shows 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.
Of the past 5 years WMS 4 years were profitable.
WMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WMS has a Return On Assets of 13.92%. This is amongst the best in the industry. WMS outperforms 82.50% of its industry peers.
WMS has a better Return On Equity (33.38%) than 87.50% of its industry peers.
WMS's Return On Invested Capital of 17.68% is amongst the best of the industry. WMS outperforms 82.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WMS is significantly above the industry average of 13.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 33.38% | ||
| ROIC | 17.68% |
ROA(3y)13.91%
ROA(5y)8.16%
ROE(3y)37.79%
ROE(5y)20.91%
ROIC(3y)18.56%
ROIC(5y)N/A
1.3 Margins
WMS has a better Profit Margin (16.89%) than 90.00% of its industry peers.
In the last couple of years the Profit Margin of WMS has grown nicely.
Looking at the Operating Margin, with a value of 24.29%, WMS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Operating Margin of WMS has grown nicely.
WMS's Gross Margin of 39.06% is fine compared to the rest of the industry. WMS outperforms 70.00% of its industry peers.
In the last couple of years the Gross Margin of WMS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.29% | ||
| PM (TTM) | 16.89% | ||
| GM | 39.06% |
OM growth 3Y12.7%
OM growth 5Y21.26%
PM growth 3Y23.79%
PM growth 5Y28.47%
GM growth 3Y4.63%
GM growth 5Y11.04%
2. Health
2.1 Basic Checks
WMS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WMS has less shares outstanding than it did 1 year ago.
WMS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WMS has been reduced compared to a year ago.
2.2 Solvency
WMS has an Altman-Z score of 5.20. This indicates that WMS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.20, WMS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
WMS has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as WMS would need 3.49 years to pay back of all of its debts.
WMS has a Debt to FCF ratio (3.49) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.91 indicates that WMS is somewhat dependend on debt financing.
WMS has a Debt to Equity ratio of 0.91. This is in the lower half of the industry: WMS underperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 5.2 |
ROIC/WACC1.67
WACC10.59%
2.3 Liquidity
A Current Ratio of 3.19 indicates that WMS has no problem at all paying its short term obligations.
The Current ratio of WMS (3.19) is better than 80.00% of its industry peers.
A Quick Ratio of 2.15 indicates that WMS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.15, WMS is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
WMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.23%.
Measured over the past years, WMS shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.30% on average per year.
WMS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.94%.
The Revenue has been growing by 15.73% on average over the past years. This is quite good.
EPS 1Y (TTM)6.23%
EPS 3Y35.13%
EPS 5Y37.3%
EPS Q2Q%-0.58%
Revenue 1Y (TTM)2.94%
Revenue growth 3Y13.18%
Revenue growth 5Y15.73%
Sales Q2Q%0.31%
3.2 Future
The Earnings Per Share is expected to grow by 5.46% on average over the next years.
The Revenue is expected to grow by 5.35% on average over the next years.
EPS Next Y-4.47%
EPS Next 2Y2.74%
EPS Next 3Y5.46%
EPS Next 5YN/A
Revenue Next Year3.5%
Revenue Next 2Y4.88%
Revenue Next 3Y5.35%
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
The Price/Earnings ratio is 19.85, which indicates a rather expensive current valuation of WMS.
WMS's Price/Earnings is on the same level as the industry average.
WMS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 18.43, which indicates a rather expensive current valuation of WMS.
WMS's Price/Forward Earnings is on the same level as the industry average.
WMS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
WMS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WMS is cheaper than 65.00% of the companies in the same industry.
WMS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.53 | ||
| EV/EBITDA | 11.98 |
4.3 Compensation for Growth
The excellent profitability rating of WMS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y2.74%
EPS Next 3Y5.46%
5. Dividend
5.1 Amount
WMS has a yearly dividend return of 0.52%, which is pretty low.
WMS's Dividend Yield is comparable with the industry average which is at 1.05.
Compared to an average S&P500 Dividend Yield of 2.28, 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 has a limited annual growth rate of 4.20%.
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)4.2%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
9.49% of the earnings are spent on dividend by WMS. This is a low number and sustainable payout ratio.
The dividend of WMS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP9.49%
EPS Next 2Y2.74%
EPS Next 3Y5.46%
ADVANCED DRAINAGE SYSTEMS IN
NYSE:WMS (1/21/2025, 8:04:00 PM)
After market: 125.25 0 (0%)125.25
-0.24 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners87%
Inst Owner Change-0.07%
Ins Owners1.46%
Ins Owner Change0%
Market Cap9.71B
Analysts81.54
Price Target167.96 (34.1%)
Short Float %2.55%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.56
Dividend Growth(5Y)4.2%
DP9.49%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.47%
Min EPS beat(2)-11.18%
Max EPS beat(2)-1.77%
EPS beat(4)2
Avg EPS beat(4)8.9%
Min EPS beat(4)-11.18%
Max EPS beat(4)30.33%
EPS beat(8)5
Avg EPS beat(8)12.39%
EPS beat(12)6
Avg EPS beat(12)10.37%
EPS beat(16)7
Avg EPS beat(16)4.48%
Revenue beat(2)0
Avg Revenue beat(2)-4.27%
Min Revenue beat(2)-5.77%
Max Revenue beat(2)-2.77%
Revenue beat(4)2
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-5.77%
Max Revenue beat(4)5.98%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)7
Avg Revenue beat(12)1.79%
Revenue beat(16)10
Avg Revenue beat(16)3.36%
PT rev (1m)0%
PT rev (3m)-8.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 18.43 | ||
| P/S | 3.33 | ||
| P/FCF | 24.53 | ||
| P/OCF | 15.94 | ||
| P/B | 6.59 | ||
| P/tB | 18.37 | ||
| EV/EBITDA | 11.98 |
EPS(TTM)6.31
EY5.04%
EPS(NY)6.8
Fwd EY5.43%
FCF(TTM)5.11
FCFY4.08%
OCF(TTM)7.86
OCFY6.27%
SpS37.58
BVpS19.02
TBVpS6.82
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 33.38% | ||
| ROCE | 23.07% | ||
| ROIC | 17.68% | ||
| ROICexc | 22.09% | ||
| ROICexgc | 35.94% | ||
| OM | 24.29% | ||
| PM (TTM) | 16.89% | ||
| GM | 39.06% | ||
| FCFM | 13.59% |
ROA(3y)13.91%
ROA(5y)8.16%
ROE(3y)37.79%
ROE(5y)20.91%
ROIC(3y)18.56%
ROIC(5y)N/A
ROICexc(3y)20.66%
ROICexc(5y)N/A
ROICexgc(3y)36.83%
ROICexgc(5y)N/A
ROCE(3y)24.22%
ROCE(5y)N/A
ROICexcg growth 3Y6.99%
ROICexcg growth 5Y21.79%
ROICexc growth 3Y19.02%
ROICexc growth 5Y13.98%
OM growth 3Y12.7%
OM growth 5Y21.26%
PM growth 3Y23.79%
PM growth 5Y28.47%
GM growth 3Y4.63%
GM growth 5Y11.04%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 127.93% | ||
| Cap/Sales | 7.32% | ||
| Interest Coverage | 7.23 | ||
| Cash Conversion | 69.66% | ||
| Profit Quality | 80.44% | ||
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | 5.2 |
F-Score7
WACC10.59%
ROIC/WACC1.67
Cap/Depr(3y)112.95%
Cap/Depr(5y)89.43%
Cap/Sales(3y)5.74%
Cap/Sales(5y)5.05%
Profit Quality(3y)88.74%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.23%
EPS 3Y35.13%
EPS 5Y37.3%
EPS Q2Q%-0.58%
EPS Next Y-4.47%
EPS Next 2Y2.74%
EPS Next 3Y5.46%
EPS Next 5YN/A
Revenue 1Y (TTM)2.94%
Revenue growth 3Y13.18%
Revenue growth 5Y15.73%
Sales Q2Q%0.31%
Revenue Next Year3.5%
Revenue Next 2Y4.88%
Revenue Next 3Y5.35%
Revenue Next 5YN/A
EBIT growth 1Y3.41%
EBIT growth 3Y27.55%
EBIT growth 5Y40.33%
EBIT Next Year22.12%
EBIT Next 3Y12.32%
EBIT Next 5YN/A
FCF growth 1Y-13.2%
FCF growth 3Y12.67%
FCF growth 5Y37.59%
OCF growth 1Y-1.24%
OCF growth 3Y16.66%
OCF growth 5Y36.46%