Advanced Drainage Systems, Inc.

$ 147.12 5.72 %

Advanced Drainage Systems, Inc., established in Hilliard, Ohio in 1966, is a leading provider of innovative water management solutions. The company specializes in the design, manufacturing, and global distribution of thermoplastic corrugated pipes and related drainage products, primarily targeting the underground construction and infrastructure sectors across the United States, Canada, Mexico, and other international territories. Its operations are structured across four key segments: Pipe, International, Infiltrator, and Allied Products & Other. ADS offers a wide array of products, including single, double, and triple-wall corrugated pipes made from polypropylene and polyethylene. Beyond basic piping, their extensive catalog features sophisticated water management systems such as plastic leachfield chambers, EZflow synthetic aggregate bundles, advanced mechanical aeration wastewater solutions, septic tanks and accessories, and integrated treatment and dispersal units. Furthermore, the company supplies allied products like storm retention, detention, and septic chambers, polyvinyl chloride drainage structures, various fittings, and water quality filters and separators. ADS also distributes construction fabrics and other geosynthetic materials vital for soil stabilization, reinforcement, filtration, erosion control, and sub-surface drainage, alongside drainage grates. These products cater to a broad spectrum of applications, including residential, non-residential, agricultural, and large-scale infrastructure projects, supported by approximately 38 distribution centers.

CEO: Donald Scott Barbour - https://www.adspipe.com

Price objectif

$187.88 27.71 %

Recommandation

Hold

DCF

$ 130.57

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WMS vs S&P500

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Quick ratio

1.35

suggests a healthy liquidity position, showing that the company can likely meet its short-term obligations.

P/E ratio

26.95

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

5.46

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

22.43 %

is generally considered excellent, indicating that the company is generating strong profits with its equity.

ROIC

13.02 %

generates a return higher than the cost of its capital, thereby creating value for its investors.

WACC

9.45

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.93

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

7.32

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

13.16 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
4 indicates moderate financial health
Altman score
4.58 indicates good financial health and low risk of bankruptcy
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Cash / Debt

Cash Ratio
0.44 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.40 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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