WMS Intrinsic Value Calculator – Investigating Advanced Drainage Systems,’s Intrinsic Value: Is the Price Justified?

November 30, 2023

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Advanced Drainage Systems ($NYSE:WMS), Inc. (ADSI) is a leading manufacturer of water management products and solutions. The company designs, manufactures and distributes a wide range of high-performance drainage products in the United States and internationally. ADSI is a publicly traded company on the New York Stock Exchange (NYSE: WMS). This paper aims to investigate the intrinsic value of ADSI, by analyzing the company’s financial performance and position, and determining whether the market price of the stock is justified. In order to accurately determine the intrinsic value of ADSI, a thorough analysis of the company’s financial statements and key metrics needs to be conducted. This includes assessing the company’s profitability, liquidity, solvency, and capital structure.

Additionally, the future prospects for ADSI need to be considered, such as expected growth rates and potential risks. Furthermore, an analysis of ADSI’s competitive advantages over its competitors must be conducted in order to accurately determine its potential value. Once these aspects have been assessed, the intrinsic value of ADSI can be compared to the market price of the stock. If the intrinsic value is significantly higher than the market price, then it may be a good time to invest in ADSI, as there may be an opportunity for higher returns. On the other hand, if the intrinsic value is lower than or equal to the market price, then it may not be a good time to invest in ADSI as there may not be any potential for higher returns. Investing in ADSI requires careful consideration and thoughtful analysis. By conducting an analysis of the intrinsic value of ADSI, investors can make informed decisions about whether or not investing in the company is a wise decision. Through this paper, investors will gain insight into whether or not the current market price for ADSI is justified by its intrinsic value.

Price History

On Friday, ADVANCED DRAINAGE SYSTEMS, Inc. (ADS) stock opened at $119.2 and closed at $119.6, representing a 0.1% increase from its prior closing price of 119.5. This modest increase in share price raises questions regarding the company’s intrinsic value – is it actually worth the current stock price? In order to answer this question, it is necessary to investigate ADS’ fundamentals in order to evaluate whether the current stock price is justified. ADS’ financial performance has remained strong and steady over the past five years, with revenue and net income increasing year-over-year. Furthermore, the company has consistently exceeded analysts’ estimates for earnings growth over this period. Given ADS’ strong financial performance, the company’s current stock price is likely justified.

Additionally, ADS’ strong competitive positioning in a growing industry should ensure that its share price remains stable or continues to increase over time. Therefore, investors who are considering investing in ADS should feel confident in the company’s intrinsic value and future prospects. 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
    2.83k 477.39 16.4%
  • 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
    729.65 -153.17 -564.48
  • 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
    3.14k 1.96k 14.78
  • 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
    15.9% 34.5% 25.1%
    FCF Margin ROE ROA
    19.6% 39.4% 14.2%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – WMS Intrinsic Value Calculator

    At GoodWhale, we recently analyzed the financials of ADVANCED DRAINAGE SYSTEMS. Our proprietary Valuation Line indicates that the fair value of their stock is around $112.9. Unfortunately, ADVANCED DRAINAGE SYSTEMS’ stock is currently trading at $119.6, implying an overvaluation of 5.9%. This is an important factor to consider when deciding to invest in them. More…

  • 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, Inc. (ADS) is a leading provider of water management solutions and is a highly regarded stock by investors. It has a wide range of products and services, a strong balance sheet, and steady cash flows. Analysts have conducted an intrinsic value analysis of ADS to determine its fair market value and potential upside. The analysis takes into account the company’s current financial performance, future outlook, and competitive advantages.

    The results suggest that ADS is undervalued compared to its peers and may offer good returns in the long run. Investors should look closely at the company’s profitability and cash flows to assess its true value and determine whether it is a good choice for long-term investment.

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