WMSAdvanced Drainage Systems (WMS) shows strong fundamental performance and positive long-term thematic alignment, with recent technical indicators suggesting a consolidation phase after a period of strong gains. Moderate valuation presents a balanced risk/reward profile for long-term investors.
WMS is well-positioned to benefit from several strong secular growth trends including infrastructure spending, sustainable building practices, and water management solutions.
WMS demonstrates robust financial health, consistent revenue growth, and improving profitability, supported by a solid balance sheet. Valuation metrics are reasonable given growth prospects.
The stock has experienced recent price volatility, trading below its 52-week high. Technical indicators suggest a period of consolidation or a minor pullback, with mixed signals from oscillators and moving averages.
| Factor | Score |
|---|---|
| Infrastructure Spending | 95 |
| Sustainable Building & Water Management | 90 |
| Residential & Non-Residential Construction | 80 |
| Regulatory Tailwinds | 75 |
| Material Costs & Supply Chain | 75 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 75 |
| Growth | 80 |
| Balance Sheet Health | 70 |
| Cash Flow | 85 |
| Dividend Yield | 50 |
| Factor | Score |
|---|---|
| Trend Analysis | 60 |
| Momentum | 65 |
| Volume Confirmation | 70 |
| Support & Resistance | 65 |
| Oscillators | 60 |
Consistent Earnings Beat
The company has exceeded earnings per share (EPS) estimates for the last 3 consecutive quarters, with the most recent quarter showing a positive surprise of 31.63% (reported EPS of $1.34 vs. estimate of $1.02).
Undervalued Relative to Earnings
The Price-to-Earnings (P/E) ratio on a trailing twelve months (TTM) basis is 20.31, which is below the industry average and historical levels, suggesting potential undervaluation.
Increasing Price-to-Sales Ratio
The Price-to-Sales (P/S) ratio has increased from 2.1 in 2023 to 3.2 in 2024 (annual), suggesting that the market is valuing revenue more highly, potentially leading to overvaluation if growth falters.
Slowing Revenue Growth Year-over-Year
While revenue for Q1 2025 was $2.90 billion, the year-over-year growth from Q1 2024 (revenue $2.87 billion) is approximately 1.0%, a deceleration from previous periods.
May 2025
30
Ex-Dividend Date
June 2025
16
Next Dividend Date
August 2025
7
Next Earnings Date
H: $1.87
A: $1.77
L: $1.71
H: 820.00M
A: 800.54M
L: 766.00M
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in the United States, Canada, and internationally. It operates through Pipe, Infiltrator, International, and Allied Products & Other 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 for residential and commercial systems; 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. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.
138.89 USD
The 39 analysts offering 1 year price forecasts for WMS have a max estimate of 160.00 and a min estimate of 130.00.