Advanced Drainage Systems (WMS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Advanced Drainage Systems

NYSE•Industrials•Building Products & Equipment

$126.05+0.38(<0.01%)After hours

Market Cap

$9.62B

P/E

11.5x

P/S

1.8x

P/B

5.4x

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 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.

How this company scores

GoodMetricSide Score: 74/100

Strongest: Growth (23/25); weakest: Balance Sheet & Red Flags (14/25).

Profitability22/25

Growth23/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality15/25

Strengths

Growing revenueRising free cash flowStrong marginsHigh ROE

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 11.5x5y range 10.9x – 36.3x

Currently below its 18-quarter median.

P/S · 1.8x5y range 1.2x – 3.9x

Currently near its 20-quarter median.

P/B · 5.4x5y range 3.7x – 11.6x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.1x) — earnings may be inflated by non-cash items or aggressive accounting.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $9.62B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $5.48B
Q. Revenue: $1.00B
TTM EBITDA: $1.57B
TTM Op. Income: $1.22B
Q. Op. Income: $254.55M
TTM Net Income: $833.54M
Q. Net Income: $168.52M
EPS: $2.2
Shares Out.: $76.53M

$5.48B in TTM revenue grew 26.1% YoY, reaching $1.00B last quarter. TTM EBITDA of $1.57B and TTM operating income of $1.22B show growth is flowing through to the bottom line. TTM net income of $833.54M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 3 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 40.8%
EBITDA Margin: 31.6%
Op. Margin: 25.4%
Net Margin: 16.8%

Op. margin of 25.4% is up 7.1% YoY — cost efficiency is improving. Net margin at 16.8% and gross margin of 40.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 38% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 11.5x
P/S Ratio: 1.8x
P/B Ratio: 5.4x

At 11.5x P/E, the stock trades below typical market levels. P/S of 1.8x and P/B of 5.4x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.51B
Cash: $162.25M
Long-Term Debt: $1.60B
Book Value: $1.79B
D/E Ratio: 0.9
Debt/EBITDA: 5.1

With $4.51B in assets and $1.60B in long-term debt, D/E is 0.9and book value is $1.79B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $260.39M
TTM Free Cash Flow: $211.77M
FCF Margin: 3.9%
FCF / Net Income: 0.3

TTM FCF of $211.77M on $260.39M in operating cash flow. The FCF / Net Income ratio of 0.3x means cash covers only part of net income — earnings quality needs attention. Over the past year, free cash flow is up 82% — an improving trend.