Advanced Drainage Systems Inc
NYSE:WMS
Intrinsic Value
Advanced Drainage Systems, Inc. engages in the manufacture of thermoplastic corrugated pipe, which provides a suite of water management products and drainage solutions for use in the construction and... [ Read More ]
The intrinsic value of one WMS stock under the Base Case scenario is 120.12 USD. Compared to the current market price of 171.44 USD, Advanced Drainage Systems Inc is Overvalued by 30%.
Valuation Backtest
Advanced Drainage Systems Inc
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Fundamental Analysis
Increased Revenue and EBITDA Guidance
2024-Q3 Earnings Call
The company has increased its free cash flow by 6% to $564 million primarily due to improved working capital. Capital spending rose by 8% to $136 million as it invested in automation, manufacturing capacity, and a new engineering and technology center. They have adjusted their revenue guidance up to $2.8-$2.85 billion, and adjusted EBITDA to $880-$910 million, reflecting stable demand and sales mix benefits. Investments are being directed towards organic growth, strategic acquisitions, and share repurchases, with 1.6 million shares bought back this fiscal year. The share repurchase program accounts for 9% of the total shares since its inception in 2022, and the quarterly dividend has increased by 17%.
Balance Sheet Decomposition
Advanced Drainage Systems Inc
Current Assets | 1.2B |
Cash & Short-Term Investments | 560.7m |
Receivables | 240.8m |
Other Current Assets | 436.9m |
Non-Current Assets | 1.9B |
PP&E | 810.9m |
Intangibles | 983m |
Other Non-Current Assets | 129.6m |
Current Liabilities | 409.1m |
Accounts Payable | 207.9m |
Accrued Liabilities | 162.3m |
Other Current Liabilities | 38.9m |
Non-Current Liabilities | 1.6B |
Long-Term Debt | 1.3B |
Other Non-Current Liabilities | 252.9m |
Earnings Waterfall
Advanced Drainage Systems Inc
Revenue
|
2.8B
USD
|
Cost of Revenue
|
-1.7B
USD
|
Gross Profit
|
1.1B
USD
|
Operating Expenses
|
-400.3m
USD
|
Operating Income
|
716.2m
USD
|
Other Expenses
|
-215.1m
USD
|
Net Income
|
501m
USD
|
Free Cash Flow Analysis
Advanced Drainage Systems Inc
What is Free Cash Flow?
WMS Profitability Score
Profitability Due Diligence
Advanced Drainage Systems Inc's profitability score is 67/100. The higher the profitability score, the more profitable the company is.
Score
Advanced Drainage Systems Inc's profitability score is 67/100. The higher the profitability score, the more profitable the company is.
WMS Solvency Score
Solvency Due Diligence
Advanced Drainage Systems Inc's solvency score is 62/100. The higher the solvency score, the more solvent the company is.
Score
Advanced Drainage Systems Inc's solvency score is 62/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
WMS Price Targets Summary
Advanced Drainage Systems Inc
According to Wall Street analysts, the average 1-year price target for WMS is 181.33 USD with a low forecast of 146.45 USD and a high forecast of 198.45 USD.
Ownership
WMS Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
WMS Price
Advanced Drainage Systems Inc
Average Annual Return | 48.83% |
Standard Deviation of Annual Returns | 62.13% |
Max Drawdown | -54% |
Market Capitalization | 13.3B USD |
Shares Outstanding | 77 616 800 |
Percentage of Shares Shorted | 2.53% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Advanced Drainage Systems, Inc. engages in the manufacture of thermoplastic corrugated pipe, which provides a suite of water management products and drainage solutions for use in the construction and infrastructure marketplace. The company is headquartered in Hilliard, Ohio and currently employs 5,000 full-time employees. The company went IPO on 2014-07-25. The firm operates through four segments: Pipe, International, Infiltrator and Allied Products & Other. Pipe segment manufactures and markets performance thermoplastic corrugated pipe throughout the United States. Infiltrator segment is a provider of plastic leachfield chambers and systems, septic tanks and accessories, primarily for use in residential applications. International segment manufactures and markets products in regions outside of the United States, with owned facilities in Canada and those markets serviced through its joint ventures in Mexico and South America. Its Allied Products & Other segment offers adjacent technologies to its core Pipe offering, presenting a complete drainage solution for its clients and customers.
Contact
IPO
Employees
Officers
The intrinsic value of one WMS stock under the Base Case scenario is 120.12 USD.
Compared to the current market price of 171.44 USD, Advanced Drainage Systems Inc is Overvalued by 30%.