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Advanced Drainage Systems, Inc.

Rank #261Capital ReturnWatchlistCompare with other stocks

WMS · NYSE · Industrials

Advanced Drainage Systems, Inc. (WMS) — Rank #261 by gross profitability (GP/assets 0.26) · ROE 23.8% · Piotroski F-Score 4 / 9.

As-of 2026-10-30 · 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.

Show more

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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

6,425

Industry

Building Products & Equipment

Exchange

NYSE

10/12

Flags passed

WMS fails 2 critical flags

Passes 10 of 12 quality flags

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • FAIL
    Balance sheet deteriorating

    Net cash collapsed with receivables or inventory outpacing revenue

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 0.26

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

3rd of 5 SIC 30 peers

Return on equity

23.8%

Gross margin

38.3%

3rd of 5 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 33% above net income

Free cash flow

$569.29M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

33.5%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.1%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Warning: Balance sheet deteriorating · net debt $1.45B, F-Score 4/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.44

4th of 5 SIC 30 peers (best = lowest)

Current ratio

2.12×

3rd of 5 SIC 30 peers

Quick ratio

1.06×

Net cash

-$1.45B

Cash & equivalents minus total debt.

Piotroski F-Score

4 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

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

Capital allocation quality

Composite score

1.7 / 5

Weak
Share count trend
0.2%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency
5 yr3/5 Good
Net debt trajectory
-13.1%0/5 Weak

Lifecycle Phase History

20212026
Capital Return
Hypergrowth
Value

Price History

WMS+11.8% · +2.3% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports