WMS Intrinsic Stock Value – Advanced Drainage Systems Reports Impressive Fiscal Q2 Earnings of $130.4 Million
November 16, 2024
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Advanced Drainage Systems ($NYSE:WMS) (ADS) is a leading provider of innovative water management solutions in the United States and internationally. On Friday, ADS announced its impressive fiscal Q2 earnings of $130.4 million, surpassing analysts’ expectations. The company’s strong performance can be attributed to its focus on innovation, strategic investments, and efficient operations. One of the key drivers of ADS’s success is its commitment to innovation. The company continuously invests in research and development to develop new and improved products that meet the changing needs of its customers.
In addition, ADS has a dedicated team of engineers who work closely with customers to design custom solutions for specific projects. This commitment to innovation has helped ADS maintain a competitive edge in the market and attract new customers. Along with innovation, ADS also strategically invests in expanding its operations and capabilities. This acquisition has not only expanded ADS’s product portfolio but also strengthened its position in the market. Furthermore, ADS has also been investing in expanding its production capacity to meet the increasing demand for its products. In addition to its strategic investments, ADS also focuses on efficient operations to drive profitability. The company has implemented cost-saving initiatives and streamlined its supply chain to reduce costs and improve margins. This approach has proven successful, as reflected in its strong earnings report. With its commitment to innovation, strategic investments, and efficient operations, ADS is well-positioned to continue delivering sustainable and efficient water management solutions to its customers.
Earnings
The company reported a total revenue of $715.36 million, which is a 9.2% increase compared to the previous year. This significant growth can be attributed to ADS’s strong performance in the market and its innovative solutions in the drainage systems industry. In addition to its impressive total revenue, ADS also reported a net income of $73.68 million for the quarter. While this represents a 10.2% decrease compared to the previous year, it is still a significant amount and showcases the company’s profitability despite challenges faced in the market. Over the past three years, ADS has consistently shown growth and success in its financial performance. The company’s total revenue has steadily increased from $715.36 million to $662.37 million, demonstrating its ability to adapt and thrive in a constantly evolving market.
This strong financial performance can be attributed to ADS’s commitment to innovation and providing top-quality products and services to its customers. The company’s advanced drainage systems have been recognized for their efficiency and effectiveness in managing stormwater and other drainage needs. In conclusion, ADS has once again demonstrated its strength in the market with an impressive fiscal Q2 earnings report. The company’s consistent growth and profitability over the years showcase its strong position in the industry and its ability to deliver exceptional results for its stakeholders. With a focus on innovation and customer satisfaction, ADS is poised for continued success in the future.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WMS. More…
| Total Revenues | Net Income | Net Margin |
| 2.84k | 500.99 | 17.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WMS. More…
| Operations | Investing | Financing |
| 747.63 | -155.53 | -454.12 |
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 |
| 3.16k | 1.94k | 15.41 |
Key Ratios Snapshot
Some of the financial key ratios for WMS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.1% | 30.5% | 26.1% |
| FCF Margin | ROE | ROA |
| 20.1% | 39.2% | 14.6% |
Market Price
The company’s stock opened at $150.99 and closed at $136.16, representing a significant drop of 14.36% from the previous closing price of $159. This decline in stock value may be attributed to a range of factors, such as market fluctuations or changes in investor sentiment.
However, it is important to note that despite this dip, the company’s earnings still surpassed analysts’ expectations, indicating a strong performance in the second quarter. One of the key factors contributing to ADVANCED DRAINAGE SYSTEMS’ success is its focus on innovation and technology. The company is known for its advanced drainage solutions, utilizing cutting-edge technology to provide efficient and sustainable products. This has allowed them to stay ahead of their competitors and gain a significant market share in the industry. In addition to this, ADVANCED DRAINAGE SYSTEMS has also been actively expanding its product portfolio and market reach. This strategic acquisition not only broadens their product offerings but also provides them with a larger customer base. Furthermore, the company’s strong financial results can also be attributed to its cost management efforts and efficient operations. Despite the challenges posed by the pandemic, ADVANCED DRAINAGE SYSTEMS was able to maintain its production and distribution activities, ensuring timely delivery of products to its customers. Looking ahead, ADVANCED DRAINAGE SYSTEMS remains optimistic about its future performance. With a strong financial position and a focus on continued innovation and growth opportunities, the company is well-positioned to continue its success in the market. As the demand for sustainable and efficient drainage solutions continues to rise, ADVANCED DRAINAGE SYSTEMS is poised to capitalize on these opportunities and drive further growth in the future. Live Quote…
Analysis – WMS Intrinsic Stock Value
As a company, GoodWhale recently conducted an extensive analysis of the well-being of ADVANCED DRAINAGE SYSTEMS. Our team took into consideration various factors such as financial performance, industry trends, and market conditions in order to accurately assess the company’s current state. After carefully evaluating all of the information gathered, we have determined that the intrinsic value of ADVANCED DRAINAGE SYSTEMS share is approximately $115.9. This calculation is based on our proprietary Valuation Line, which takes into account various financial metrics and projections. Currently, ADVANCED DRAINAGE SYSTEMS stock is being traded at $136.16 per share. This means that the stock is trading at a premium of 17.5% above its intrinsic value. As a result, our analysis has concluded that the stock is currently overvalued. While overvaluation may not necessarily indicate a problem for the company in the short term, it could be a cause for concern for investors in the long term. It is important for investors to carefully consider the fair value of a stock before making any investment decisions. In conclusion, our analysis has shown that ADVANCED DRAINAGE SYSTEMS is a well-performing company with a fair intrinsic value of $115.9 per share. However, investors should be aware that the stock is currently trading at a premium and may want to carefully evaluate their investment decisions in light of this information. More…
Peers
The company’s products are used in a variety of applications, including residential, commercial, and industrial. Advanced Drainage Systems Inc’s main competitors are JELD-WEN Holding Inc, Murray And Roberts Holdings Ltd, Deceuninck NV.
– JELD-WEN Holding Inc ($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, a company specializing in drainage solutions, reported strong earnings in its fiscal second quarter, with a profit of $130.4 million.
However, the same day their stock price moved down, indicating a potentially negative sentiment among investors. This could be due to various factors, such as lower-than-expected earnings or concerns about the company’s future growth. As with any investment, it is important for investors to carefully analyze financial performance and market trends before making decisions.
Additionally, staying informed about industry developments and company news can also aid in making informed investment decisions.
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