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Advanced Drainage Systems, Inc.

Rank #270Capital Return

WMS · NYSE · Industrials

Advanced Drainage Systems, Inc. (WMS) — Rank #270 by gross profitability (GP/assets 0.26) · ROE 23.8% · Piotroski F-Score 4 / 9.

As-of 2026-09-15 · CIK 0001604028 · all metrics point-in-time as of the filing date.

About

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in the United States, Canada, and internationally.

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The company operates through Stormwater and Wastewater segments. The company offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater; septic tanks and accessories; combined treatment and dispersal systems, including AeroFin, advanced enviro-septic, enviro-septic, and advanced treatment leachfield; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. It 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. In addition, the company provides PVC hubs, rubber sleeves, and stainless-steel bands; and channel drains, catch basins, grates, access boxes, and accessories engineered to capture, convey, and disperse stormwater. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc.

was incorporated in 1966 and is headquartered in Hilliard, Ohio.

Industry
Building Products & Equipment
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
March 31

Price History

WMS+12.5% · +2.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$9.51B

P/E (annual)

23.2

P/S (annual)

3.1

P/B

5.3

P/OCF (annual)

11.6

Shareholder Yield

0.3%

Employees

6,425

Industry

Building Products & Equipment

Exchange

NYSE

Signal Flags

2 green2 red
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Operating margin decliningOperating margin lower than prior year
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.26
Return on equity
23.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.44
Current ratio
2.12×
Net cash
-$1.45B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.1%

Growth

2/2 pass
Revenue growth
5.0%
Piotroski F-Score
4 / 9
Share dilution
0.2%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

5.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.2% — per-share value needs a total required return of 6.0% once share-count change is priced in.

vs. own 6-year median revenue growth: 8.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

1.6%

r = 10% (base)

5.8%

r = 12%

9.4%

Net debt / market cap: 14.7%

Base FCF: $569.3M3Y mean FCF: $490.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

24.8xFair
16.2xmed 26.7x58.7x

P / S

Price / revenue per share

3.5xExpensive
1.2xmed 2.7x4.7x

P / B

Price / book value per share

5.7xFair
4.4xmed 6.7x11.8x

P / GP

Price / gross profit per share

9.1xFair
5.2xmed 8.7x11.9x

P / FCF

Price / free cash flow per share

18.6xFair
12.1xmed 20.2x60.2x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

3rd of 6 SIC 30 peers

Return on equity

23.8%

Gross margin

38.3%

3rd of 6 SIC 30 peers

Revenue growth (YoY)

5.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-0.2%

Revenue CAGR (5Y)

9.0%

Earnings CAGR (3Y)

-5.6%

FCF CAGR (3Y)

1.7%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.44

5th of 6 SIC 30 peers (best = lowest)

Current ratio

2.12×

3rd of 6 SIC 30 peers

Quick ratio

1.06×

Net cash

-$1.45B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$569.29M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.33

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.1%

Stock-based comp intensity.

Dividend safety

Composite score

3.5 / 5

Good
Payout ratio
13.2%5/5 Strong
FCF coverage
10.14×5/5 Strong
Dividend growth streak
5 yr3/5 Good
Balance-sheet health
D/E 1.44 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

4 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Capital Return
Hypergrowth
Value
View full financial statements →