WMS
Advanced Drainage Systems Inc
$150.11
▼ 1.4%Updated Today 12:11 PM ET
WMS at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 48/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 26.4% over the last 12 months
Market Cap
$10.98B
P/E
27.35x
Forward P/E (est.)
28.92x
ROE
22.4%
Revenue Growth
5.0%
EPS Growth
-5.4%
Profit Margin
14.0%
FCF Yield
5.1%
Debt / Equity
0.92x
ROIC
14.0%
Interest Coverage
—
Current Ratio
2.42x
Dividend Yield
0.5%
Implied Growth (rev. DCF)
3.6%
Rating Score
48/100
Advanced Drainage Systems Inc (WMS) is a large-cap company in the Building industry, part of the Industrials sector of the S&P 500, with a market value around $10.98B.
In its latest reported year it generated about $3.05B in revenue and $426.46M in net profit.
Our model rates WMS Neutral (48/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WMS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WMS trades near $150.11, above its 50-day average ($141.97) and 200-day average ($147.12). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 64 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. WMS's is $6.08 (~4.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month WMS found buyers near $129.29 (support) and sellers near $157.99 (resistance); its 52-week range is $109.63–$179.32. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.1× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
2.4%
Revenue moved from $1.26B in 2017 to $3.05B in 2026, a 10.3% compound annual growth rate. The most recent year grew a steady 5.0% year over year. Slower, mature growth is common for established businesses.
Gross Margin
38.3%
Operating Margin
20.3%
Net Margin
14.0%
ROE
22.4%
Advanced Drainage Systems Inc keeps about 14.0% of each sales dollar as net profit, with a 38.3% gross margin and 20.3% operating margin. Return on equity is 22.4% and return on invested capital about 14.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$1.63B
Net Debt
$1.41B
Net Debt / EBITDA
2.27x
Debt / Equity
0.92x
Leverage: debt-to-equity is 0.9x, with a current ratio of 2.4x. That is a moderate, manageable debt load for most businesses. It carries roughly $1.63B of total debt against $223.01M of cash.
Operating CF
$819.05M
Free Cash Flow
$569.29M
FCF Margin
18.7%
In the latest year Advanced Drainage Systems Inc produced about $819.05M of operating cash flow and $569.29M of free cash flow after capital spending. That is a free-cash-flow yield of about 5.1% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
27.35x
P/S
3.82x
P/B
5.53x
EV / EBITDA
18.06x
WMS trades at 27.4x trailing earnings (about 28.9x on estimated forward earnings), 3.8x sales, and 5.5x book value. Reverse-engineering today's price implies the market expects roughly 3.6% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$135.25
Current price
$150.11
Starting FCF (latest 10-K)
$569.29M
Growth, years 1–5
5.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $150.11 today · expected CAGR -5% – 5%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $3.20B | $3.36B | $3.53B | $3.71B | $3.89B |
| Net income | $448.41M | $470.83M | $494.37M | $519.09M | $545.04M |
| EPS | $5.85 | $6.15 | $6.45 | $6.78 | $7.12 |
| Share price (low) | $93.67 | $98.35 | $103.27 | $108.43 | $113.85 |
| Share price (high) | $158.06 | $165.97 | $174.26 | $182.98 | $192.13 |
| CAGR (low–high) | -38% / 5% | -19% / 5% | -12% / 5% | -8% / 5% | -5% / 5% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for WMS:
- Strong return on equity (22.4%) shows capital is put to work well.
- Healthy free-cash-flow yield (~5.1%) funds buybacks and dividends.
The case against WMS:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Advanced Drainage Systems Inc is a large-cap industrials business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 27.4x earnings, which our model scores Neutral (48/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
WMS — frequently asked questions
Is WMS a good stock to buy?
We don't give buy or sell advice. Our model rates Advanced Drainage Systems Inc Neutral (48/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is WMS's rating on The Stocks School?
Advanced Drainage Systems Inc currently scores 48/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does WMS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Advanced Drainage Systems Inc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for WMS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this WMS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WMS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.