Advanced Drainage Systems, Inc.WMS
NYSE•Industrials•Building Products & Equipment
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.
Advanced Drainage Systems, Inc. (WMS) reported trailing twelve months revenue of $5.17B as of March 2026, a 21.0% increase year-over-year. Quarterly revenue reached $3.05B, reflecting continued top-line momentum.
Advanced Drainage Systems, Inc. generated $746.25M in TTM net income, with quarterly EBITDA of $835.46M. The operating margin contracted from 23.9% to 20.3%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (20.3%) and net margin (14.0%) indicates moderate non-operating costs. Net margin has narrowed from 16.7% a year ago, reflecting increased costs or interest expense.
WMS trades at a P/E of 13.7x (below the broader market average) and a P/S of 2.0x. The price-to-book ratio of 5.5x indicates a significant premium over book value.
The company generated $0 in free cash flow over the trailing twelve months, a 100.0% decrease year-over-year, indicating cash generation ability. The balance sheet shows $4.51B in total assets with $1.61B in long-term debt against $1.86B in stockholders equity for a debt-to-equity ratio of 0.9. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~22.9% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 46.7% suggests a durable competitive advantage and efficient capital allocation.
Only 3 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 10.6% — watch for continued compression, which may signal competitive or cost pressure.
FCF consistently trails net income (avg -0.0x) — earnings may be inflated by non-cash items or aggressive accounting.
D/E ratio is 0.9 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.
Shares decreased 3.5% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation