WallStSmart

Advanced Drainage Systems Inc (WMS) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target

Advanced Drainage Systems Inc stock (WMS) is currently trading at $137.86. Advanced Drainage Systems Inc PE ratio is 22.00. Advanced Drainage Systems Inc PS ratio (Price-to-Sales) is 3.44. Analyst consensus price target for WMS is $197.20. WallStSmart rates WMS as Moderate Buy.

  • WMS PE ratio analysis and historical PE chart
  • WMS PS ratio (Price-to-Sales) history and trend
  • WMS intrinsic value — DCF, Graham Number, EPV models
  • WMS stock price prediction 2025 2026 2027 2028 2029 2030
  • WMS fair value vs current price
  • WMS insider transactions and insider buying
  • Is WMS undervalued or overvalued?
  • Advanced Drainage Systems Inc financial analysis — revenue, earnings, cash flow
  • WMS Piotroski F-Score and Altman Z-Score
  • WMS analyst price target and Smart Rating
WMS

Advanced Drainage Systems Inc

NYSEINDUSTRIALS
$137.86
$5.67 (4.29%)
52W$93.44
$179.13
Target$197.20+43.0%

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IV

WMS Intrinsic Value Analysis for Value Investors

Benjamin Graham Formula · Advanced Drainage Systems Inc (WMS)

Margin of Safety
+3.4%
Fair Value
WMS Fair Value
$179.34
Graham Formula
Current Price
$137.86
$41.48 below fair value
Undervalued
Fair: $179.34
Overvalued
Price $137.86
Graham IV $179.34
Analyst $197.20

WMS is trading near its Graham intrinsic value of $179.34, suggesting the stock is reasonably priced at current levels.

Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.

WallStSmart

Smart Analysis

Advanced Drainage Systems Inc (WMS) · 10 metrics scored

Smart Score

66
out of 100
Grade: B-
Strong Buy
Investment Rating

Category Performance

WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.

Investment Thesis

Strong fundamentals in market cap, peg ratio, return on equity. Concerns around price/book and revenue growth. Overall metrics suggest strong investment potential with favorable risk/reward.

Advanced Drainage Systems Inc (WMS) Key Strengths (6)

Avg Score: 8.8/10
Return on EquityProfitability
27.60%10/10

Every $100 of shareholder equity generates $28 in profit

Institutional Own.Quality
95.89%10/10

95.89% of shares held by major funds and institutions

Market CapQuality
$10.30B9/10

Large-cap company with substantial market presence

PEG RatioValuation
1.128/10

Good growth relative to its price

Operating MarginProfitability
21.00%8/10

Strong operational efficiency: $21 kept per $100 revenue

Profit MarginProfitability
15.80%8/10

Strong profitability: $16 kept per $100 revenue

Supporting Valuation Data

WMS Target Price
$197.2
25% Upside

Advanced Drainage Systems Inc (WMS) Areas to Watch (4)

Avg Score: 4.0/10
Price/BookValuation
5.132/10

Very expensive at 5.1x book value

Revenue GrowthGrowth
0.40%2/10

Revenue growing slowly at 0.40% annually

Price/SalesValuation
3.446/10

Revenue is fairly priced at 3.44x sales

EPS GrowthGrowth
14.40%6/10

Solid earnings growth at 14.40%

Advanced Drainage Systems Inc (WMS) Detailed Analysis Report

Overall Assessment

This company scores 66/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 6 register as strengths (avg 8.8/10) while 4 fall into concern territory (avg 4.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.

The Bull Case

The strongest argument centers on Return on Equity, Institutional Own., Market Cap. Valuation metrics including PEG Ratio (1.12) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 27.60%, Operating Margin at 21.00%, Profit Margin at 15.80%.

The Bear Case

The primary concerns are Price/Book, Revenue Growth, Price/Sales. Some valuation metrics including Price/Sales (3.44), Price/Book (5.13) suggest expensive pricing. Growth concerns include Revenue Growth at 0.40%, EPS Growth at 14.40%, which may limit upside.

Key Dynamics to Monitor

Three factors to monitor going forward. First, whether Price/Book improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 27.60% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 0.40% needing to reaccelerate.

Risk Considerations

Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.

Bottom Line

Mixed fundamentals with both positives (Return on Equity, Institutional Own.) and negatives (Price/Book, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.

Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.

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WallStSmart Analysis Synopsis

Data-driven financial summary for Advanced Drainage Systems Inc (WMS) · INDUSTRIALSBUILDING PRODUCTS & EQUIPMENT

The Big Picture

Advanced Drainage Systems Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 3.0B with 40% growth year-over-year. Profit margins of 15.8% are healthy, with room for further expansion as the business scales.

Key Findings

Strong Revenue Growth

Revenue growing at 40% YoY, reaching 3.0B. This pace significantly outperforms most BUILDING PRODUCTS & EQUIPMENT peers.

Excellent Capital Efficiency

ROE of 2760.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.

What to Watch Next

Growth sustainability: can Advanced Drainage Systems Inc maintain 40%+ revenue growth, or will competition slow it down?

Sector dynamics: monitor BUILDING PRODUCTS & EQUIPMENT industry trends, competitive moves, and regulatory changes that could impact Advanced Drainage Systems Inc.

Bottom Line

Advanced Drainage Systems Inc offers an attractive blend of growth (40% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.

This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Insider Transactions(5 last 3 months)

Total Buys
2
Total Sells
3
Mar 17, 2026(1 transaction)
MARTZ, BRET
See Remarks
Sell
Shares
-107

Data sourced from SEC Form 4 filings

Last updated: 9:51:14 AM

About Advanced Drainage Systems Inc(WMS)

Exchange

NYSE

Sector

INDUSTRIALS

Industry

BUILDING PRODUCTS & EQUIPMENT

Country

USA

Advanced Drainage Systems, Inc. designs, manufactures and markets thermoplastic corrugated pipe and related water management products and drainage solutions for use in the underground construction and infrastructure market in the United States, Canada, Mexico and internationally. The company is headquartered in Hilliard, Ohio.