Advanced Drainage Systems, Inc.

Building Products & Equipment

WMSSolid10 of 11 basics passed

$125.79

-0.33%

Market cap $9.49B

$125.79

-0.33%

Market cap $9.49B

Advanced Drainage Systems Inc designs, manufactures and markets water management solutions in the stormwater and onsite wastewater industries, providing superior drainage solutions for use in the construction and agriculture markets.

It is a $9.49B industrial company. Revenue grew 50.8% over the last year, it keeps 14¢ of every dollar of sales as profit, and its net debt equals ~3.0 years of free cash flow. It trades at 21.3× earnings — in the cheapest third of its own history.

Website: adspipe.com
Location: Hilliard, OH
Employees: 6 425
Sector: Industrials
Founded: 1966

Share price · 3 years

$119.03 → $125.79+5.7%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $3.22B
Profit: keeps 14¢ of every $1 sold; $451M
Free cash flow: cash left after running the business; $550M
Net debt: debt minus cash on hand; $1.62B
P/E: years of profit in the price; 21.3
EPS: earnings per share, TTM; $5.75
Dividend: pays out 13% of profit · 10% of FCF; 0.60%
Shares: up 42% since 2016 — dilution; 78.4M
Volatility: beta vs the market — under 1 swings less; 1.34

Revenue, last 10 years

52-week range

Low $125.33$125.79High $175.38

Today's price is 1% of the way from the year's low to its high.

P/E vs its history5y

21.0×median 23.5×

Higher than 30% of past days — in the cheapest third of its own history.

Valuation vs own history

P/E

21.0×

70%

P/S

2.9×

83%

EV/EBITDA

16.6×

63%

P/B

5.2×

97%

FCF yield

5.8%

84%

Share of the last ~5 years that was pricier than today (cheaper than usual). Based on the daily valuation record.

Standing in Industrials

Size$9.49Btop 82%
Revenue growth-0%top 73%
Net margin14%top 26%
Return on equity23%top 37%
P/E21.3×top 30%
Dividend yield0.60%top 81%

Ranked against 130 Industrials companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Balanced profile — no dimension clearly leads or lags.

Valuation72

P/E vs own history30th pct · 20/25
FCF yield5.8% · 20/25
P/S3.0x · 20/25
EV/EBITDA15.3x · 12/25

Growth58

Revenue CAGR2.4% · 6/25
Net income CAGR12.0% · 20/25
EPS CAGR ~5Y11.7% · 20/25
Fwd implied growth13.4% · 12/25

Profitability72

ROIC12.2% · 12/25
ROE23.4% · 20/25
Net margin14.0% · 20/25
Operating margin20.7% · 20/25

Health73

Altman Z3.37 · 25/25
Current ratio2.12 · 25/25
Interest coverage9.9x · 18/25
Net cash / debtD/A 36% · 5/25

Quality72

Piotroski F4/9 · 10/25
Beneish M-2.94 · 25/25
FCF conversion122% · 25/25
Margin stabilityσ 14.1% · 12/25

Moat51

ROIC >12% years9/11 yrs · 20/25
Median gross margin28.9% · 6/25
FCF-positive years11/11 yrs · 25/25
Worst-year net marginworst -11.5% · 0/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2024Financial
Best year on record
$510M net income
2019Acquisition
The company acquired Infiltrator Water Technologies from the Ontario Teachers' Pension Plan for $1.08…
FY2016Financial
First recorded profitable year
$18.0M net income
FY2016Financial
Revenue already above $1B
$1.29B in first reported year
FY2016Financial
Positive free cash flow every year since
11-year streak
2015Acquisition
The company acquired Ideal Pipe of Ontario for $45 million
2014IPO
The company became a public company via an initial public offering on the New York Stock Exchange,…
1966Founded
The company was founded in 1966 by Ron Martin and Marty Sixt, two engineers

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$11 401 today — price return only

$3.1B revenue in FY2026

Revenue up 50.8% year over year

Profitable 6 years in a row

Positive free cash flow 11 years in a row

6 425 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

Revenue growing 50.8% year over year
Strong cash conversion — FCF is 17.1% of revenue
Interest covered 9.9× by operating earnings
Altman Z-Score 3.37 — low bankruptcy-risk zone

Watch-outs

Loss-making in 1 of the recent years

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

10 of 11 checks passed

Revenue growing — the company sells more than a year ago+50.8% YoY
Profitable — makes more than it spends$451M TTM
Profit growing — earnings are higher than last year-3.7% YoY
Generates cash — cash left after running and investing$550M TTM
Debt under control — could handle its obligations~3.0y of cash flow to repay
Established company — not a micro-cap — lower blow-up risk$9.49B market cap
Not printing shares — share count not ballooning — you keep your slice+9.5% shares over ~5y
Proven track record — years of profitability behind it10/11 profitable years
Financially stable — balance sheet not near distressAltman Z 3.4 — safe
Pays a dividend — returns cash to shareholdersyield 0.60%
Valuation not extreme — price not wildly above earningsP/E 21.3

Peer comparisonAdvanced Drainage Systems, Inc. vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
WMS this company	$9.5B	21.3	+50.8%	14.0%	Solid
LRCX Lam Research Corp	$399.2B	54.9	+26.0%	31.3%	Strong
CAT Caterpillar Inc.	$368.0B	33.9	+18.4%	14.5%	Solid
RTX RTX Corporation	$251.3B	32.4	+11.8%	8.3%	Strained
DE Deere & Company	$167.7B	34.4	+8.3%	10.2%	Solid
ETN Eaton Corporation, plc	$167.2B	43.6	+15.5%	12.8%	Mixed
UNP Union Pacific Corp.	$166.8B	22.6	+4.2%	28.8%	Strained

Head-to-head: WMS vs LRCX · WMS vs CAT · WMS vs RTX

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 6Buy 10Hold 1

Appendix · Financial records

The full statements behind this CV, FY2016–FY2026. For readers who want to check the numbers.

Profit & lossRevenue $3.22B · net income $451M (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2026 revenue flows to profit

RevenueNet income

Revenue (TTM)

$3.22B

YoY 50.8%

Net income (TTM)

$451M

Margin 14.0%

Gross margin

38.6%

Operating margin

20.7%

P/E ratio

21.3

Dividend yield

0.60%

Income statement — full detail

Figures in USD billions · EPS in USD

	2021	2022	2023	2024	2025	2026
Revenue	2.0	2.8	3.1	2.9	2.9	3.1
Gross profit	0.7	0.8	1.1	1.1	1.1	1.2
Operating income (EBIT)	0.3	0.4	0.7	0.7	0.7	0.6
Net income	0.2	0.3	0.5	0.5	0.5	0.4
EPS (diluted)	3.13	3.72	6.08	6.45	5.76	5.44

Cash flowFree cash flow $550M · operating cash flow $804M (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$550M

Margin 17.1%

Operating cash flow (TTM)

$804M

FCF margin

17.1%

Cash flow statement — full detail

Figures in USD billions

	2021	2022	2023	2024	2025	2026
Operating cash flow	0.5	0.3	0.7	0.7	0.6	0.8
Capital expenditure	-0.1	-0.1	-0.2	-0.2	-0.2	-0.2
Free cash flow	0.4	0.1	0.5	0.5	0.4	0.6
FCF margin	18.8%	4.5%	17.6%	18.6%	12.7%	18.7%

Balance sheetAssets $4.51B · net debt $1.62B (FY2026)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $4.51B of assets is financed

58%

42%

Liabilities $2.62B — borrowed moneyEquity $1.88B — owners' stake

Cash vs debt

Total debt $1.85B − cash $223M = net debt $1.62B

Cash on hand covers 12% of debt.

Altman Z-Score

3.37

Safe zone

Debt repayment

2.9 yrs

Years of free cash flow to clear net debt

Interest coverage

9.9x

EBIT ÷ interest expense

ROE

23.4%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2021	2022	2023	2024	2025	2026
Cash & equivalents	0.2	0.0	0.2	0.5	0.5	0.2
Total assets	2.4	2.6	2.9	3.3	3.7	4.5
Total liabilities	1.4	1.5	1.9	2.0	2.1	2.6
Total debt	0.8	0.9	1.3	1.3	1.3	1.8
Equity	0.8	0.9	0.8	1.2	1.5	1.9
Net debt	0.6	0.9	1.1	0.8	0.8	1.6

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of WMS on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $125.79 · market cap $9.49B.