Advanced Drainage Systems, Inc.

Valuation Analysis

About the Company

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

Advanced Drainage Systems, Inc. Stock at a Glance

Advanced Drainage Systems, Inc. (WMS) is currently trading at $134.95 with a market capitalization of $10.3B. The trailing P/E ratio stands at 24.76x, with a forward P/E of 18.43x. The 52-week range spans from $109.63 to $179.31; the current price is 24.7% below the yearly high. Year-over-year revenue growth stands at +9.9%. The net profit margin stands at 13.98%.

💰 Dividend

Advanced Drainage Systems, Inc. pays an annual dividend of $0.80 per share, representing a yield of 0.59%. The payout ratio stands at 13.21%.

📊 Analyst Rating

10 analysts rate Advanced Drainage Systems, Inc. (WMS) on consensus: Strong Buy. The average price target is $179.70, implying +33.16% from the current price. Analyst price targets range from $150.00 to $205.00.

Advanced Drainage Systems, Inc.: The Investment Case in Detail

Advanced Drainage Systems, Inc. (WMS) operates in the Industrials — specifically Building Products & Equipment — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Return on equity of 25.1% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Wall Street consensus sits at Strong Buy with an average price target implying roughly 33.16% upside from current levels — analyst sentiment is firmly constructive.

Valuation in Context

The PEG ratio at 1.23 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

What to Watch Next

• The forward P/E of 18.43x is meaningfully below the trailing 24.76x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 33.16% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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