A Business at a Glance
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ADVANCED DRAINAGE SYSTEMS, INC.
WMS
$11.1B
Mkt Cap
$141.84
+0.98%
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a current P/E ratio of 23.6, compared to its historical median P/E of 26.4. The stock is currently considered Fair based on its historical valuation range.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a 5-year average return on invested capital (ROIC) of 23.4%. This indicates strong capital allocation and a potential competitive advantage.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a market capitalization of $11.0B. It is classified as a large-cap stock.
Yes, ADVANCED DRAINAGE SYSTEMS, INC. (WMS) pays a dividend with a trailing twelve-month yield of 0.49%.
Based on historical P/E analysis, ADVANCED DRAINAGE SYSTEMS, INC. (WMS) appears fair. The current P/E of 23.6 is 11% below its historical median of 26.4. The estimated fair value CAGR (P/E method) is 38.8%.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) operates in the Plastics Foam Products industry, within the Materials sector.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) reported annual revenue of $2.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Advanced Drainage Systems, Inc. (ADS) is the leading manufacturer of water management solutions for stormwater and onsite septic wastewater applications across residential, non-residential, infrastructure, and agriculture end markets in North America. The company's product portfolio spans four lifecycle stages—Capture, Conveyance, Storage, and Treatment—and includes corrugated polypropylene and polyethylene pipe (approximately 52% of revenue), plastic leachfield chambers and septic tanks through its Infiltrator subsidiary (approximately 18% of revenue), and allied products such as storm retention chambers, drainage structures, fittings, and water quality filters (approximately 24% of revenue), with international sales comprising the remainder. ADS operates a national sales and distribution platform leveraging its brand recognition, engineering support, product breadth, and manufacturing scale to serve a combined addressable market of approximately $15 billion across the $13 billion stormwater industry and $2 billion onsite septic market. The company's competitive moat is built on its trademarked green stripe brand identity, comprehensive water management approach from rainfall capture to ecosystem return, industry-leading engineering capabilities, and proven integration track record demonstrated through acquisitions including Infiltrator, Orenco, and NDS. Distribution occurs through direct sales channels and resale agreements for complementary products, with customers ranging from residential home builders and contractors to non-residential developers and infrastructure projects.
【Demand normalization with pricing headwinds】 Management expects fiscal 2027 demand to be similar to fiscal 2026 with a slightly more negative outlook on agriculture and single-family housing, though demand patterns remain choppy as customers attempt to purchase ahead of anticipated price increases, which could create a temporary air pocket in summer before normalizing within the first half of the year. The non-residential market is expected to be flat to up low single digits, with strength driven by large projects such as data centers and multifamily development, where ADS expects to outperform through its expanded product portfolio and cross-selling capabilities. The company has taken pricing actions to offset significant year-over-year inflationary pressures on input materials and transportation costs on a dollar-for-dollar basis, and management remains focused on executing its long-term strategic plan to drive consistent growth, margin expansion, and free cash flow generation. The long-term outlook remains strong, supported by compelling secular tailwinds driving demand for water management solutions across North America, with management planning to share medium-term financial targets and details on capital deployment payoff at an upcoming Investor Day.
| Metric | Target | Period |
|---|---|---|
| Revenue | $3.35 billion–$3.55 billion | FY2027 |
| Adjusted EBITDA | $1 billion–$1.5 billion | FY2027 |
| NDS Revenue Contribution | approximately $300 million | FY2027 |
Revenue (FY2027): “We expect revenue to be in the range of $3.35 billion-$3.55 billion”
Adjusted EBITDA (FY2027): “adjusted EBITDA to be in the range of $1 billion-$1.5 billion”
NDS Revenue Contribution (FY2027): “This guidance also includes approximately $300 million of revenue from NDS for the full fiscal year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.0B | 2.9B | 2.9B | 3.1B | 2.8B | 2.0B |
| Net Income | 471M | 450M | 510M | 507M | 230M | 185M |
| EPS | $6.09 | $5.76 | $6.45 | $6.08 | $3.15 | $2.59 |
| Free Cash Flow | 577M | 369M | 534M | 541M | 126M | 373M |
| ROIC | 42.9% | 23.3% | 28.9% | 29.8% | 17.7% | 17.0% |
| Gross Margin | 38.7% | 37.7% | 39.9% | 36.4% | 28.9% | 34.8% |
| Debt/Equity | 0.67 | 0.83 | 1.10 | 1.56 | 1.04 | 0.96 |
| Dividends/Share | $0.70 | $0.64 | $0.56 | $0.48 | $0.44 | $0.36 |
| Operating Income | 683M | 657M | 732M | 719M | 412M | 345M |
| Operating Margin | 22.8% | 22.6% | 25.5% | 23.4% | 14.9% | 17.4% |
| ROE | 24.4% | 33.6% | 51.6% | 59.1% | 26.8% | 27.6% |
| Shares Outstanding | 78M | 78M | 79M | 83M | 73M | 72M |
| Metric | 2014 | 2017 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.1B | 1.2B | 1.3B | 1.3B | 1.3B | 1.4B | 1.7B | 2.0B | 2.8B | 3.1B | 2.9B | 2.9B | 3.0B |
| Gross Margin | 18.2% | 17.4% | 22.1% | 23.5% | 22.7% | 23.6% | 18.9% | 34.8% | 28.9% | 36.4% | 39.9% | 37.7% | 38.7% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 60M | 76M | 93M | 111M | 98M | 186M | 271M | 268M | N/A | N/A | N/A | N/A | N/A |
| EBIT | 53M | 39M | 94M | 76M | 88M | 129M | -95M | 345M | 412M | 719M | 732M | 657M | 683M |
| Op. Margin | 5.0% | 3.3% | 7.3% | 6.1% | 6.6% | 9.3% | -5.7% | 17.4% | 14.9% | 23.4% | 25.5% | 22.6% | 22.8% |
| Net Income | -5.9M | -20M | 21M | 56M | 56M | 70M | -205M | 185M | 230M | 507M | 510M | 450M | 471M |
| Net Margin | -0.6% | -1.7% | 1.7% | 4.4% | 4.2% | 5.1% | -12.2% | 9.3% | 8.3% | 16.5% | 17.7% | 15.5% | 15.7% |
| Non-Recurring | 2.9M | -362K | -812K | -8.5M | -3.6M | -2.0M | -5.3M | -2.4M | -3.4M | -297K | 8.4M | -3.9M | -3.9M |
| Returns on Capital | |||||||||||||
| ROIC | -92.5% | 5.1% | 10.2% | 8.3% | 13.2% | 15.7% | -18.5% | 17.0% | 17.7% | 29.8% | 28.9% | 23.3% | 42.9% |
| ROE | N/A | -12.2% | 11.4% | 26.1% | 21.0% | 20.3% | -45.0% | 27.6% | 26.8% | 59.1% | 51.6% | 33.6% | 24.4% |
| ROA | -0.6% | -1.9% | 2.1% | 5.3% | 5.3% | 6.7% | -12.0% | 7.8% | 9.1% | 18.3% | 16.5% | 12.9% | 11.4% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 72M | 74M | 135M | 104M | 137M | 152M | 306M | 452M | 275M | 708M | 718M | 581M | 820M |
| Free Cash Flow | 33M | 42M | 90M | 58M | 95M | 108M | 239M | 373M | 126M | 541M | 534M | 369M | 577M |
| Owner Earnings | -26M | -28M | 51M | -482M | 56M | 71M | 212M | 320M | 120M | 534M | 531M | 388M | 600M |
| CapEx | 40M | 32M | 45M | 47M | 42M | 43M | 68M | 79M | 149M | 167M | 184M | 213M | 243M |
| Maint. CapEx | 64M | 65M | 71M | 568M | 62M | 59M | 62M | 66M | 142M | 145M | 155M | 183M | 206M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 5.5M | 12M | 7.3M | 22M | 29M | 30M | 37M |
| D&A | 64M | 65M | 71M | 568M | 62M | 59M | 62M | 66M | 142M | 145M | 155M | 183M | 206M |
| CapEx/OCF | N/A | 43.1% | 33.2% | 44.8% | 30.4% | 28.6% | 22.1% | 17.4% | 54.2% | 23.6% | 25.6% | 36.6% | 29.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 115M | 7.9M | 16M | 17M | 18M | 26M | 92M | 31M | 37M | 40M | 44M | 50M | 55M |
| Dividend Yield | N/A | 0.8% | 1.2% | 1.4% | 1.6% | 1.8% | 4.3% | 0.7% | 0.4% | 0.5% | 0.5% | 0.4% | 0.5% |
| Share Buybacks | 1.1M | 3K | 3K | 3K | 7.9M | 0 | 0 | 0 | 292M | 575M | 207M | 70M | 0 |
| Buyback Yield | N/A | 0.0% | N/A | N/A | 0.5% | N/A | N/A | N/A | 2.9% | 8.4% | 1.5% | 0.8% | 0.0% |
| Stock-Based Comp | 35M | 37M | 14M | 18M | 19M | 22M | 32M | 65M | 13M | 29M | 32M | 11M | 15M |
| Debt Repayment | 12M | 432M | 448M | 383M | 512M | 443M | 178M | 100M | 0 | 12M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 457M | 402M | 371M | 353M | 280M | 226M | 923M | 594M | 908M | 1.1B | 781M | 798M | -728M |
| Cash & Equiv. | 3.9M | 3.6M | 6.6M | 6.5M | 18M | 8.9M | 174M | 195M | 20M | 217M | 490M | 463M | 2.0B |
| Long-Term Debt | 443M | 390M | 312M | 311M | 271M | 209M | 1.1B | 782M | 909M | 1.3B | 1.3B | 1.3B | 1.3B |
| Debt/Equity | -1.07 | 2.55 | 2.05 | 1.61 | 0.97 | 0.61 | 2.09 | 0.96 | 1.04 | 1.56 | 1.10 | 0.83 | 0.67 |
| Interest Coverage | 2.8 | 2.0 | 5.1 | 19.8 | 21.6 | 24.8 | -2.3 | 9.2 | 12.5 | 11.9 | 8.5 | 7.3 | 7.3 |
| Equity | -433M | 161M | 187M | 223M | 308M | 384M | 526M | 820M | 893M | 824M | 1.2B | 1.5B | 1.9B |
| Total Assets | 990M | 1.0B | 1.0B | 1.0B | 1.0B | 1.0B | 2.4B | 2.4B | 2.6B | 2.9B | 3.3B | 3.7B | 4.1B |
| Total Liabilities | 761M | 753M | 723M | 696M | 609M | 542M | 1.6B | 1.4B | 1.5B | 1.9B | 2.0B | 2.1B | 2.1B |
| Intangibles | 59M | 58M | 60M | 52M | 44M | 37M | 555M | 482M | 431M | 408M | 353M | 448M | 410M |
| Retained Earnings | -2.4M | -115M | -102M | -84M | -39M | 18M | -268M | -75M | 159M | 626M | 1.1B | 1.5B | 1.8B |
| Working Capital | 241M | 229M | 187M | 185M | 237M | 260M | 428M | 425M | 481M | 639M | 860M | 926M | 1.3B |
| Current Assets | 427M | 444M | 440M | 441M | 458M | 467M | 666M | 743M | 872M | 1.0B | 1.3B | 1.3B | 1.7B |
| Current Liabilities | 186M | 215M | 252M | 256M | 221M | 206M | 238M | 318M | 391M | 379M | 440M | 398M | 413M |
| Per Share Data | |||||||||||||
| EPS | -0.12 | -0.38 | 0.39 | 0.99 | 0.99 | 1.22 | -3.21 | 2.59 | 3.15 | 6.08 | 6.45 | 5.76 | 6.09 |
| Owner EPS | -0.53 | -0.55 | 0.92 | -8.58 | 1.00 | 1.23 | 3.32 | 4.48 | 1.65 | 6.40 | 6.72 | 4.96 | 7.70 |
| Book Value | -8.80 | 3.12 | 3.42 | 3.97 | 5.48 | 6.68 | 8.24 | 11.45 | 12.26 | 9.88 | 14.59 | 19.52 | 24.76 |
| Cash Flow/Share | 1.47 | 1.45 | 2.47 | 1.86 | 2.44 | 2.64 | 4.80 | 6.32 | 3.77 | 8.49 | 9.08 | 7.44 | 8.69 |
| Dividends/Share | 1.68 | 0.08 | 0.20 | 0.24 | 0.28 | 0.32 | 1.36 | 0.36 | 0.44 | 0.48 | 0.56 | 0.64 | 0.70 |
| Shares Out. | 49.2M | 51.5M | 54.9M | 56.1M | 56.1M | 57.5M | 63.8M | 71.6M | 72.9M | 83.4M | 79.1M | 78.2M | 77.9M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | 47.6 | 38.2 | 23.5 | 19.5 | N/A | 37.2 | 37.5 | 13.5 | 26.4 | 18.7 | 23.3 |
| P/FCF | N/A | 31.5 | 11.3 | 18.6 | 13.7 | 12.6 | 7.2 | 18.5 | 68.5 | 12.7 | 25.2 | 22.8 | 19.1 |
| EV/EBIT | N/A | 44.9 | 14.7 | 21.4 | 19.8 | 13.6 | N/A | 25.4 | 26.9 | 10.7 | 18.8 | 13.3 | 15.1 |
| Price/Book | N/A | 8.3 | 5.4 | 5.7 | 4.7 | 3.9 | 3.1 | 10.2 | 11.4 | 8.3 | 11.7 | 5.5 | 5.7 |
| Price/Sales | N/A | 0.9 | 1.0 | 1.1 | 0.9 | 1.2 | 1.2 | 2.8 | 3.6 | 2.8 | 3.3 | 3.9 | 3.7 |
| FCF Yield | N/A | 3.2% | 8.9% | 4.6% | 6.6% | 7.2% | 14.7% | 4.5% | 1.2% | 7.9% | 4.0% | 4.4% | 5.2% |
| Market Cap | N/A | 1.3B | 1.0B | 1.3B | 1.5B | 1.5B | 1.6B | 8.3B | 10.2B | 6.8B | 13.5B | 8.4B | 11.0B |
| Avg. Price | N/A | 19.72 | 24.11 | 21.06 | 20.15 | 25.24 | 33.38 | 63.38 | 114.28 | 103.07 | 119.92 | 144.12 | 141.84 |
| Year-End Price | N/A | 25.92 | 18.57 | 19.09 | 23.25 | 23.73 | 26.87 | 96.36 | 118.25 | 82.07 | 170.59 | 107.66 | 141.84 |
ADVANCED DRAINAGE SYSTEMS, INC. passes 6 of 9 quality checks, suggesting mixed fundamentals.
ADVANCED DRAINAGE SYSTEMS, INC. trades at 23.6x trailing earnings, compared to its 15-year median P/E of 26.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 19.1x vs a median of 16.1x. The company's 5-year average ROIC is 23.4% with a gross margin of 35.5%. Total shareholder yield (dividends) is 0.5%. At current prices, the estimated annualized return to fair value is +16.5%.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a net profit margin of 15.5%. This is a healthy margin.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) generated $369 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a debt-to-equity ratio of 0.83. This indicates moderate leverage.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) reported earnings per share (EPS) of $5.76 in its most recent fiscal year.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a return on equity (ROE) of 33.6%. This indicates the company generates strong returns for shareholders.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a 5-year average gross margin of 35.5%. This indicates decent pricing power.
The Ledger Terminal provides 12 years of financial data for ADVANCED DRAINAGE SYSTEMS, INC. (WMS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a book value per share of $19.52, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects fiscal 2027 demand to be similar to fiscal 2026 with a slightly more negative outlook on agriculture and single-family housing, though demand patterns remain choppy as customers attempt to purchase ahead of anticipated price increases, which could create a temporary air pocket in summer before normalizing within the first half of the year. The non-residential market is expected to be flat to up low single digits, with strength driven by large projects such as data centers and multifamily development, where ADS expects to outperform through its expanded product portfolio and cross-selling capabilities. The company has taken pricing actions to offset significant year-over-year inflationary pressures on input materials and transportation costs on a dollar-for-dollar basis, and management remains focused on executing its long-term strategic plan to drive consistent growth, margin expansion, and free cash flow generation. The long-term outlook remains strong, supported by compelling secular tailwinds driving demand for water management solutions across North America, with management planning to share medium-term financial targets and details on capital deployment payoff at an upcoming Investor Day.
Based on recent SEC filings and earnings calls, ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has provided the following forward guidance: Revenue: $3.35 billion–$3.55 billion (FY2027); Adjusted EBITDA: $1 billion–$1.5 billion (FY2027); NDS Revenue Contribution: approximately $300 million (FY2027).