ADVANCED DRAINAGE SYSTEMS Aces Capital Allocation

July 12, 2023

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Advanced Drainage Systems ($NYSE:WMS) (ADS) is an exemplary leader in capital allocation. The company has an impressive track record of deploying capital to maximize shareholder returns. ADS offers a portfolio of infrastructure products designed to provide efficient drainage solutions to the residential and commercial markets. These products include corrugated High Density Polyethylene (HDPE) pipe, corrugated polypropylene (PP) pipe, and watertight (WT) pipe. ADS also offers a full line of fittings, couplings and accessories for its piping products. ADS has a long-term track record of superior capital allocation decisions. Over the past decade, ADS has allocated capital efficiently by reinvesting into its business, returning capital to shareholders through dividend payments and share repurchases, and minimizing the amount of debt on its balance sheet.

As a result, ADS has been able to steadily grow its market value over time while simultaneously reducing its debt burden. The company has also demonstrated a commitment to meeting shareholders’ expectations. ADS pays a quarterly dividend and has an active share repurchase program that provides investors with liquidity. Furthermore, the company has taken strategic steps to increase its market presence and capitalize on emerging trends in the global infrastructure market. Overall, ADS is a leader in capital allocation and is well-positioned to capitalize on future growth opportunities. Its commitment to meeting shareholder expectations and focus on efficient capital deployment make it an attractive investment opportunity.

Stock Price

The company’s stock opened at $116.4 and closed at $117.8, representing a 1.8% increase from the prior closing price of $115.7. This latest jump in the stock’s value is a testament to the confidence investors have in ADS’ ability to properly allocate capital for long-term success. Investors are taking comfort in the company’s ability to continuously find new opportunities while maintaining a firm grip on its financials. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for WMS. More…

    Total Revenues Net Income Net Margin
    3.07k 507.09 16.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for WMS. More…

    Operations Investing Financing
    707.81 -214.48 -296.28
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for WMS. More…

    Total Assets Total Liabilities Book Value Per Share
    2.9k 1.91k 12.38
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for WMS are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    22.4% 46.1% 23.7%
    FCF Margin ROE ROA
    17.6% 43.8% 15.7%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    At GoodWhale, we have conducted a thorough analysis of ADVANCED DRAINAGE SYSTEMS’s financials. We have determined that, based on our Risk Rating system, ADVANCED DRAINAGE SYSTEMS is a medium risk investment in terms of its financials and business aspects. We have identified three risk warnings in areas such as the income sheet, balance sheet, and non-financials. Register with us to explore further into these details and make an informed decision about your investment. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    The company’s products are used in a variety of applications, including residential, commercial, and industrial. Advanced Drainage Systems Inc’s main competitors are JELD-WEN Holding Inc, Murray And Roberts Holdings Ltd, Deceuninck NV.

    – JELD-WEN Holding Inc ($NYSE:JELD)

    JELD-WEN Holding Inc is a company that manufactures and sells doors and windows. The company has a market cap of 715.36M as of 2022 and a Return on Equity of 18.13%. JELD-WEN has a strong focus on shareholder value and has a history of paying dividends. The company is headquartered in Charlotte, North Carolina.

    – Murray And Roberts Holdings Ltd ($OTCPK:MURSF)

    Murray & Roberts Holdings Ltd is a South African company that operates in the engineering and construction industry. The company has a market cap of 92.75M as of 2022 and a Return on Equity of 8.08%. Murray & Roberts is involved in a variety of engineering and construction projects, both in South Africa and internationally. The company has a long history dating back to 1902, and has been a major player in the South African construction industry for many years.

    – Deceuninck NV ($LTS:0MEL)

    Deceuninck NV is a Belgian company that manufactures and sells PVC-based products. The company has a market capitalization of 278.92 million as of 2022 and a return on equity of 9.83%. Deceuninck NV manufactures and sells a wide range of PVC-based products, including windows, doors, and Conservatory products. The company also offers a variety of services, such as installation and maintenance.

    Summary

    Advanced Drainage Systems (ADS) is a publicly traded company that specializes in the design and manufacture of water management products. ADS is known for its strong capital allocation strategy, which has enabled it to become one of the leading companies in the water management industry. By focusing on long-term investments, ADS has been able to create and maintain a competitive edge in the industry. The company utilizes both fundamental and quantitative analysis when evaluating potential investments in order to identify and maximize value. ADS has a history of successful investments in areas such as acquisitions, joint ventures, capital projects, and mergers and acquisitions.

    In addition, the company regularly monitors the performance of its assets and adjusts its portfolio in response to market conditions. Overall, ADS has established itself as a reliable and profitable investment choice for investors looking to benefit from its capital allocation and market intelligence.

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