# Advanced Drainage Systems Inc. (WMS) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Building Products. Price $135.76, market value $10.2 billion.

## Valuation
- **P/E (trailing): 23.2×** (5-yr avg 24.2×, 3-yr avg 23.4×). Advanced Drainage Systems Inc. trades at 23.2× trailing earnings, close to its own five-year average of 24.2×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 18.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 3.2×**. Each dollar of revenue is priced at 3.2×.
- **Price / book: 5.4×**. The shares trade at 5.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 13.0×**. Enterprise value is 13.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.4%** (5-yr avg 4.6%). Free cash flow equals 5.4% of the market value, in line with its five-year average of 4.6%. Above 5% is generally attractive.
- **Earnings yield: 4.3%**. The inverse of the P/E: 4.3% of the price is earned each year.

## Profitability
- **Gross margin: 38.6%**. Advanced Drainage Systems Inc. keeps 38.6% of revenue after the direct cost of what it sells.
- **Operating margin: 20.7%**. 20.7% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.0%**. 14.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 22.9%**. 22.9% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 16.2%**. Return on all capital, debt included, is 16.2%: comfortably above what that capital costs.
- **Return on assets: 10.0%**. Each dollar of assets produces 10.0% of profit.

## Growth
- **Revenue growth (1 yr): 5.0%** (3-yr -0.2%/yr, 5-yr 9.0%/yr). Revenue grew 5.0% over the last year, against 9.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -5.6%** (3-yr -3.6%/yr, 5-yr 16.0%/yr). Earnings per share fell 5.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 1.7%/yr**. Free cash flow has compounded at 1.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.87**. Debt is 0.87 times equity, moderate leverage.
- **Net debt / EBITDA: 1.5×**. It would take 1.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 4.12**. A Z-score of 4.12 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.59%** ($0.74 per share, trailing). Advanced Drainage Systems Inc. yields 0.59%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 13%** (10% of free cash flow). 13% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 14.2%/yr** (1-yr 12.9%). The dividend has compounded at 14.2% a year over five years, doubling roughly every 5 years at that pace.

## Analyst view
- **Analyst consensus: strong_buy** (12 analysts). 12 analysts cover Advanced Drainage Systems Inc.; the consensus is strong_buy, with an average price target of $183.92 (+35% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -5.4%** (YTD -6.0%, 3-mo 4.3%). The shares are down 5.4% over twelve months including dividends.
- **From 52-week high: -24.3%** (6.0% above the low). Trading 24% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 1.37** (volatility 38%). Beta of 1.37 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=WMS · Page: https://foliofundamentals.com/stocks/wms

Not investment advice.