WMS

Advanced Drainage Systems, Inc.

Fundamental data last updated:June 5, 2026

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company profile

SECTOR

Industrials

industry

Construction

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States, Canada, Mexico, and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems, EZflow synthetic aggregate bundles, mechanical aeration wastewater solutions, septic tanks and accessories, and combined treatment and dispersal systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of approximately 38 distribution centers. The company was incorporated in 1966 and is headquartered in Hilliard, Ohio.

 


VALUATION

P/E

25.61

Market Cap ($M USD)

$10.75B

Forward P/E

15.78

PEG

0.25

PRICE TO SALES

3.52

PRICE TO BOOK

5.65

EV / EBITDA

13.18

5-Year Average P/E

Free Cash Flow Yield

5.30%

DCF Value

$136.40

Graham Number

$55.33

Price to FCF

18.88

EV to FCF

21.60

Earnings Yield

3.90%

FCF Yield

5.30%

DIVIDEND

Yield

0.51%

Annual Payout

$0.72

Payout Ratio

13.16%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.48

Next Year EPS Growth Estimate

$8.89

Next Year Revenue Growth Estimate

$389.36B

Return on Equity (ROE)

22.43%

FREE CASH FLOW

Operating Margin

22.79%

Debt-to-Equity

0.92

Piotroski F-Score

4

Altman Z-Score

4.46

Return on Invested Capital (ROIC)

17.39%

Current Ratio

2.42

Quick Ratio

1.35

Net Debt to EBITDA

1.66

Interest Coverage

7.41

Gross Profit margin

37.22%

FCF PER SHARE

$7.32

REVENUE PER SHARE

$39.20

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing WMS Advanced Drainage Systems, Inc. relative to its intrinsic value. Recent pricing indicated it traded above its DCF Value of $126.53 and Graham Number of $59.30, suggesting overvaluation. However, a Forward P/E of 18.25 and an Earnings Yield of 4.23% reflect reasonable growth expectations. The robust Altman Z-score of 5.45 signals financial stability, indicating low bankruptcy risk. Overall, the company presents a mixed valuation picture with solid growth prospects but potential overvaluation concerns.

AI Exposure / Tech Reliance

Positioned within the construction industry, WMS Advanced Drainage Systems, Inc. is well-situated to leverage AI and modern technology to enhance operational efficiency. The integration of AI could streamline supply chain logistics and improve manufacturing processes. This adaptability is crucial for maintaining competitiveness in an evolving industrial landscape.

The Bull Case

For the value or GARP investor, WMS offers compelling reasons to buy. With a strong ROIC of 18.30%, the company demonstrates efficient capital allocation, translating into robust returns. The Piotroski F-Score of 6 indicates sound financial health, while a solid operating margin of 22.85% underscores pricing power. Despite a modest FCF Yield of 5.17%, the company's ability to generate cash flow supports its growth narrative.

The Bear Case

Despite its strengths, WMS faces structural risks that cannot be ignored. The Price/Book ratio of 5.55 and Price/Sales of 3.73 suggest the stock is trading at a premium, raising concerns about overvaluation. Additionally, the EV to FCF ratio of 20.09 indicates potential inefficiencies in cash flow generation. With the stock extended above its DCF Value, investors should be cautious of potential downside risks.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$189.43

Institutional Ownership %

1-Year Beta

1.33

Insider Buying % (6 Mo)

Distance to 52-Week High

27.76%

Distance to 52-Week Low

25.09%

EARNINGS SURPRISE %

7.00%

50-DAY SMA

$142.47

200-DAY SMA

$147.30

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.