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olivLaw · US equity research

Advanced Drainage Systems, Inc. WMS

Plastics Foam Products · SIC 3086 · Vertical: Rubber and plastics products (SIC 308x)

144.07USD+5.93% · 1 dayClose 04 Nov 2026

Advanced Drainage Systems is a leading maker of water management products for stormwater and onsite wastewater, using recyclable plastic. In the first quarter of fiscal 2027 net sales rose 20.6% to 1.0 billion USD, with the NDS acquisition completed in February 2026 contributing materially.

At the close of 04 Nov 2026, Advanced Drainage Systems, Inc. (WMS) stock was 144.07 USD (+5.93% on the day), with market capitalisation 10.9 bn USD, P/E 24.9 on diluted EPS of 5.79 USD over the last 12 months, dividend yield 0.51%, beta 1.20, 52-week range 125.19–175.38 USD. Latest reported quarter (Q1 2027): revenue of 1.0 bn USD (+20.6% YoY), net income of 168.5 m USD (+17.1% YoY), diluted EPS 2.19 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
10.9 bn USD
shares as of 30 Jul 2026
P/E (TTM)
24.9
Diluted EPS TTM 5.79 · TTM to 30 Jun 2026
E/P (TTM)
4.02%
TTM to 30 Jun 2026
Dividend yield
0.51%
DPS 12m 0.74
Beta (2y)
1.20
Volatility (1y) 37%
52-week range
125.19175.38

Price history

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Technical reading

RSI (14)
70.1
overbought (≥ 70)
Bollinger (20, 2)
121.31 – 140.60
above the upper band · %B 1.18 · band width 14.7%
SMA 50 / 200
130.65 / 143.26
mixed trend
MACD (12, 26, 9)
2.36 / 0.85
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+11.3%−1.1%+12.4 pp—
3 months−3.7%−0.5%−3.2 pp—
6 months−3.1%+4.4%−7.5 pp—
Year to date−0.5%+12.3%−12.8 pp—
1 year+6.1%+13.5%−7.4 pp+16.1%
3 years+27.9%+76.4%−48.5 pp+27.2%
5 years+16.3%+63.7%−47.3 pp—
Max drawdown (1y)
−28.6%
06 Feb 2026 → 14 Oct 2026
Max drawdown (5y)
−50.3%
16 Aug 2022 → 20 Mar 2023
Compound annual growth (5y)
+3.1%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2027 · 30 Jun 2026

Revenue
1.0 bn USD
+20.6% YoY
Net income
168.5 m USD
+17.1% YoY
Diluted EPS
2.19
+19.0% YoY
net / operating
16.8% / 25.4%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27
Revenue782.6 m690.5 m615.8 m829.9 m850.4 m693.4 m676.8 m1.0 bn
Gross profit293.9 m241.6 m226.3 m330.4 m340.1 m259.2 m237.7 m408.0 m
Operating income187.4 m126.9 m117.0 m205.7 m223.3 m136.8 m53.3 m254.5 m
Depreciation & amortisation44.8 m47.8 m49.6 m50.2 m54.7 m51.5 m59.8 m62.2 m
Pre-tax income171.2 m108.6 m99.2 m189.4 m208.2 m122.7 m39.4 m229.0 m
Income tax40.9 m27.1 m23.2 m46.7 m52.4 m30.6 m5.4 m53.7 m
Net income130.4 m81.2 m77.2 m143.9 m156.0 m93.6 m32.9 m168.5 m
Diluted EPS1.671.040.99 ≈1.841.991.190.42 ≈2.19
Operating cash flow166.9 m ≈189.9 m ≈41.2 m275.0 m234.9 m ≈269.3 m ≈39.9 m260.4 m
Capex54.5 m ≈54.2 m ≈46.5 m52.6 m58.4 m ≈85.7 m ≈53.0 m57.2 m
Dividends paid12.5 m ≈12.4 m ≈12.4 m14.0 m14.1 m ≈14.0 m ≈14.0 m15.3 m
Share repurchases20.7 m ≈0 ≈000 ≈0 ≈92.0 m233.2 m

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 46 percentile of its own 28-quarter history (min 13.9, median 25.1, max 47.3; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue1.4 bn1.7 bn2.0 bn2.8 bn3.1 bn2.9 bn2.9 bn3.1 bn
Revenue YoY+4.1%+20.9%+18.5%+39.7%+10.9%−6.4%+1.0%+5.0%
Net income77.8 m-193.2 m224.2 m271.3 m507.1 m509.9 m450.2 m426.5 m
Net income YoY+25.4%−348.4%unavailable+21.0%+86.9%+0.6%−11.7%−5.3%
Diluted EPS1.22-3.212.593.156.086.455.765.44
Diluted EPS YoY+23.2%−363.1%unavailable+21.6%+93.0%+6.1%−10.7%−5.6%
net %5.6%-11.5%11.3%9.8%16.5%17.7%15.5%14.0%
Free cash flow108.3 m238.5 m373.5 m125.8 m540.9 m534.1 m368.5 m569.3 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 31 Mar 2026

Cash
223.0 m USD
Financial debt
1.6 bn USD
Net debt
1.4 bn USD
Equity
1.9 bn USD
Total assets
4.5 bn USD
Debt / equity
0.86x
Current ratio
2.42x
ROE
24.9%
ROA
10.4%
FCF margin
18.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
2.9 bn
2025
2.9 bn
2026
3.1 bn

SEC (XBRL)· 21 May 2026verified

Gross profit
2024
1.1 bn
2025
1.1 bn
2026
1.2 bn

SEC (XBRL)· 21 May 2026verified

SG&A
2024
—
2025
—
2026
—

SEC (XBRL)· 27 May 2021verified

Operating income
2024
732.1 m
2025
657.4 m
2026
619.2 m

SEC (XBRL)· 21 May 2026verified

Depreciation & amortisation
2024
154.9 m
2025
183.3 m
2026
216.3 m

SEC (XBRL)· 21 May 2026verified

EBITDA
2024
887.0 m ≈
2025
840.7 m ≈
2026
835.5 m ≈

SEC (XBRL)· 21 May 2026derived

Pre-tax income
2024
666.8 m
2025
589.5 m
2026
559.8 m

SEC (XBRL)· 21 May 2026verified

Income tax
2024
159.0 m
2025
141.1 m
2026
135.0 m

SEC (XBRL)· 21 May 2026verified

Net income
2024
509.9 m
2025
450.2 m
2026
426.5 m

SEC (XBRL)· 21 May 2026verified

Diluted EPS
2024
6.45
2025
5.76
2026
5.44

SEC (XBRL)· 21 May 2026verified

Weighted average diluted shares
2024
79.0 m
2025
78.2 m
2026
78.4 m

SEC (XBRL)· 21 May 2026verified

Dividend per share
2024
0.56
2025
0.64
2026
0.72

SEC (XBRL)· 21 May 2026verified

Balance sheet · USD

Cash
2024
490.2 m
2025
463.3 m
2026
223.0 m

SEC (XBRL)· 21 May 2026verified

Inventories
2024
464.2 m
2025
488.3 m
2026
543.4 m

SEC (XBRL)· 21 May 2026verified

Current assets
2024
1.3 bn
2025
1.3 bn
2026
1.2 bn

SEC (XBRL)· 21 May 2026verified

Property, plant & equipment, net
2024
876.4 m
2025
1.1 bn
2026
1.2 bn

SEC (XBRL)· 06 Aug 2026verified

Goodwill
2024
617.2 m
2025
720.2 m
2026
1.0 bn

SEC (XBRL)· 21 May 2026verified

Intangibles (excl. goodwill)
2024
352.7 m
2025
448.1 m
2026
848.5 m

SEC (XBRL)· 21 May 2026verified

Total assets
2024
3.3 bn
2025
3.7 bn
2026
4.5 bn

SEC (XBRL)· 21 May 2026verified

Accounts payable
2024
254.4 m
2025
218.0 m
2026
237.7 m

SEC (XBRL)· 21 May 2026verified

Short-term debt
2024
11.9 m
2025
9.9 m
2026
5.9 m

SEC (XBRL)· 21 May 2026verified

Long-term debt
2024
1.3 bn
2025
1.3 bn
2026
1.6 bn

SEC (XBRL)· 21 May 2026verified

Current liabilities
2024
439.6 m
2025
398.4 m
2026
509.5 m

SEC (XBRL)· 21 May 2026verified

Total liabilities
2024
2.0 bn
2025
2.1 bn
2026
2.5 bn

SEC (XBRL)· 21 May 2026verified

Equity
2024
1.2 bn
2025
1.5 bn
2026
1.9 bn

SEC (XBRL)· 21 May 2026verified

Cash flow · USD

Operating cash flow
2024
717.9 m
2025
581.5 m
2026
819.1 m

SEC (XBRL)· 21 May 2026verified

Capex
2024
183.8 m
2025
212.9 m
2026
249.8 m

SEC (XBRL)· 21 May 2026verified

Free cash flow
2024
534.1 m ≈
2025
368.5 m ≈
2026
569.3 m ≈

SEC (XBRL)· 21 May 2026derived

Investing cash flow
2024
-155.7 m
2025
-447.9 m
2026
-1.2 bn

SEC (XBRL)· 21 May 2026verified

Financing cash flow
2024
-284.3 m
2025
-157.7 m
2026
156.3 m

SEC (XBRL)· 21 May 2026verified

Dividends paid
2024
44.0 m
2025
49.7 m
2026
56.1 m

SEC (XBRL)· 21 May 2026verified

Share repurchases
2024
207.3 m
2025
69.9 m
2026
92.0 m

SEC (XBRL)· 21 May 2026verified

Computed indicators

Growth

Revenue growth (YoY)
5.0%
computed by olivLawFY 2026
Revenue CAGR 3Y
-0.2%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
9.0%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
-5.8%
computed by olivLawFY 2026
Net income growth (YoY)
-5.3%
computed by olivLawFY 2026
Net income CAGR 3Y
-5.6%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
13.7%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
-5.6%
computed by olivLawFY 2026
EPS CAGR 3Y
-3.6%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
16.0%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
54.5%
computed by olivLawFY 2026

Profitability

Gross margin
38.6%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
27.8%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
20.7%
computed by olivLawTTM to 30 Jun 2026
Net margin
14.0%
computed by olivLawTTM to 30 Jun 2026
FCF margin
17.1%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
26.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
10.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
18.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROCE
17.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
12.8%
computed by olivLawTTM to 30 Jun 2026
Payout ratio (FCF)
10.4%
computed by olivLawTTM to 30 Jun 2026

Balance sheet

Net debt
1.5 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
1.6x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Debt / equity
0.9x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
2.1x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
1.2x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.3x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
804.5 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
254.3 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
550.2 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
122.0%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
89.8%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
10.9 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
12.3 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
24.1x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
24.9x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
4.0%
computed by olivLawTTM to 30 Jun 2026
P/B
6.1x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
3.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
13.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBIT
18.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/Sales
3.8x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
19.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
5.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
0.5%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
3.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 55 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

144.07 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 10.9 bn USD

Key indicators

Market capitalisation
10.9 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
24.9x
computed by olivLawTTM to 30 Jun 2026
P/B
6.1x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
13.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROE
26.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
14.0%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
5.0%
computed by olivLawFY 2026
Dividend yield
0.5%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 30 Jul 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 2033derived 108

Score by group

  • Balance sheet64
  • Valuation54
  • Quality83
  • Growth0
  • Returns70

Estimated value range

Low
127.44
USD per share
Mid
146.35
USD per share
High
178.80
USD per share
Price: 144.07 USD
The price is within the range
Potential to the central value: 1.6% (value / price − 1)
Margin of safety: 1.6% (1 − price / value)
Agreement between methods: same comparison basis (not independent confirmations) · 2 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 124.78 – 212.02 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDA124.78 – 145.59 (Mid 141.48)
    7 companies used · median multiple 13.5x · quartiles 12.1x – 13.9x
    ATR, AWI, CMT, KRT, MYE, NWL, SWIM
  • Peers: P/E130.11 – 212.02 (Mid 151.23)
    7 companies used · median multiple 26.1x · quartiles 22.5x – 36.6x
    ATR, AWI, CMT, DSWL, ENTG, KRT, MYE
  • Dividend discount (DDM)outside the aggregate9.46 – 12.72 (Mid 10.85)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Rubber and plastics products (SIC 308x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 55/100

FactorValueScoreWeight used
ROIC · Quality18.3%75 (vs peers)11%
Net margin · Quality14.0%80 (vs peers)7%
FCF conversion · Quality122.0%100 (on a fixed band)7%
Revenue CAGR 3Y · Growth-0.2%0 (on a fixed band)9%
EPS CAGR 3Y · Growth-3.6%0 (on a fixed band)9%
Net debt / EBITDA · Balance sheet1.6x50 (vs peers)11%
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet2.1x100 (on a fixed band)4%
P/E (TTM) · Valuation24.9x63 (vs peers)11%
EV/EBITDA · Valuation13.7x38 (vs peers)11%
FCF yield · Valuation5.1%63 (on a fixed band)9%
Shareholder yield (distributions) · Returns3.5%50 (on a fixed band)7%
Payout ratio (FCF) · Returns10.4%100 (on a fixed band)4%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet64/100 · 2/3 factors with a value
  • Growth0/100 · 2/2 factors with a value
  • Quality83/100 · 3/3 factors with a value
  • Returns70/100 · 2/2 factors with a value
  • Valuation54/100 · 3/3 factors with a value

Memo

ADVANCED DRAINAGE SYSTEMS, INC. (WMS). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 3.1 bn USD in 2026; YoY growth 5.0%; net margin 14.0%; ROE 26.1%; net debt/EBITDA 1.6x.

The estimated value range is 127.44–178.80 USD per share (median of 2 methods, agreement: same basis (multiples on one peer group, not independent confirmations)); assumptions are illustrative. Against the central value of 146.35 USD, the price of 144.07 USD leaves a potential of 1.6% (value / price − 1) and a margin of safety of 1.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 55/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 18.3%
  • Net margin: 14.0%
  • FCF conversion: 122.0%
  • Current ratio: 2.1x
  • Payout ratio (FCF): 10.4%

What contradicts it

  • Revenue CAGR 3Y: -0.2%
  • EPS CAGR 3Y: -3.6%

Not assessed (insufficient data or a ratio without meaning): Interest coverage.

Versus the vertical median

Rubber and plastics products (SIC 308x) · same industry group (3-digit SIC) · compared with 10 companies

Multiples and returns vs the median

P/E
24.9x
vertical median 30.9x
below median (−19.4%)
EV/EBITDA
13.7x
vertical median 13.6x
at median
P/S
3.4x
vertical median 1.9x
above median (+78.4%)
P/B
6.1x
vertical median 3.5x
above median (+70.8%)
ROE
26.1%
vertical median 9.6%
above median (+170.5%)
Net margin
14.0%
vertical median 5.0%
above median (+179.0%)
EBIT margin
20.7%
vertical median 8.0%
above median (+160.1%)
Revenue YoY
5.0%
vertical median 2.1%
above median (+141.8%)
Net debt/EBITDA
1.6x
vertical median 1.5x
above median (+10.5%)
Dividend yield
0.5%
vertical median 2.6%
below median (−80.4%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
ENTGEntegris, Inc.21.8 bn55.79.6%11.1%−1.4%+85% / +37%
WMSAdvanced Drainage Systems, Inc.10.9 bn24.926.1%14.0%+5.0%+6% / +28%
ATRAptarGroup, Inc9.3 bn35.69.9%6.7%+5.4%+18% / +16%
AWIArmstrong World Industries, Inc.7.4 bn23.536.0%18.4%+12.1%−7% / +107%
NWLNewell Brands Inc2.5 bn—-12.8%-4.4%−5.0%+61% / −23%
MYEMyers Industries, Inc.1.1 bn37.69.7%3.3%−1.3%+58% / +62%
KRTKarat Packaging Inc.1.1 bn21.531.2%10.2%+10.7%+143% / +149%
SWIMLatham Group, Inc.963.2 m100.22.2%1.6%+7.4%+14% / +262%
LWLGLightwave Logic, Inc.662.9 m—-34.4%-9,134.4%+147.7%−1% / +8%
CMTCore Molding Technologies, Inc.187.1 m26.14.4%2.4%−9.5%+12% / +18%
DSWLDeswell Industries, Inc.46.5 m4.410.0%17.3%−9.3%−19% / +12%

1- and 3-year price returns: for WMS from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
83.82
Total return -41% · Per year -41%
148.53
Total return 4% · Per year 4%
224.22
Total return 56% · Per year 56%
3 years
73.80
Total return -48% · Per year -19%
147.86
Total return 4% · Per year 1%
246.14
Total return 73% · Per year 20%
5 years
64.98
Total return -53% · Per year -14%
147.20
Total return 5% · Per year 1%
270.20
Total return 91% · Per year 14%
What moves the 3-year price the most
  • Exit P/E± 36.97
  • Net margin± 25.88
  • Annual revenue growth± 22.25
  • Annual dilution± 2.17

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Advanced Drainage Systems is a leading maker of water management products for stormwater and onsite wastewater, using recyclable plastic. In the first quarter of fiscal 2027 net sales rose 20.6% to 1.0 billion USD, with the NDS acquisition completed in February 2026 contributing materially 12.

SWOT

Strengths

  • The company holds a leading position in several drainage markets and operates a national sales and distribution network. It offers complete solutions rather than single products, which strengthens customer relationships.
  • Margins have improved and operating cash generation is strong, supporting debt reduction and share repurchases.
  • The company holds many patents and runs an efficient manufacturing base with a high share of recycled material.

Weaknesses

  • Reliance on a few large customers means losing one important customer could significantly affect results.
  • Many contracts are not long-term, so customers can stop buying without long notice.
  • Debt has increased after the NDS acquisition, and interest and integration costs could limit financial flexibility.

Opportunities

  • Integrating NDS could expand sales in the residential and irrigation markets if the expected synergies materialize.
  • Growing demand for water management and public infrastructure spending could support new orders.
  • Expanding complementary products and international reach through joint ventures could bring new customers.

Threats

  • Resin price swings and new tariffs could cut margins if costs cannot be passed on to customers.
  • Rising competition and industry consolidation could pressure prices and volumes.
  • Climate regulation and extreme weather could raise costs or interrupt production.

Risks

  • Resin prices and tariffshigh

    Resin is the main raw material, and price increases or supply disruptions could hurt margins if they are not passed on to customers.

  • Customer concentrationhigh

    A small number of customers account for a large share of sales, and the absence of long-term contracts could cause sudden revenue losses.

  • NDS integrationmedium

    Integrating a large acquisition carries the risk of unexpected costs and synergies below expectations, which could affect financial results.

  • Construction cyclicalitymedium

    Demand depends on non-residential, residential and public infrastructure construction, which can fall sharply during economic uncertainty.

  • Debt and interest costslow

    Higher net debt and interest costs could limit financial flexibility if financing conditions worsen.

Investment thesis

What would need to be true (bull case)

  • If organic growth stays solid and the NDS integration delivers the stated synergies, the Adjusted EBITDA margin could keep improving.
  • The shift from traditional materials to plastic, together with a large addressable market, could support long-term growth.
  • Strong complete-package selling and the repurchase program could strengthen the company's position and shareholder returns.

What would break the thesis

  • If resin prices or tariffs rise faster than selling prices, margins could fall after the current period of price increases.
  • First-quarter growth may partly reflect orders pulled forward ahead of price increases, which could make later quarters weaker.
  • Higher debt and integration costs could limit the ability to fund growth or repurchase more shares.

What to watch

  • Delivery against fiscal 2027 net sales and Adjusted EBITDA guidance2027
  • Organic sales trend and the effect of order pull-forward ahead of price increasesQ2 2027
  • Progress of NDS integration and the synergies reportednext 10-K
  • Level of net debt and leverage ratio after share repurchasesQ2 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The company designs and manufactures thermoplastic corrugated pipe and related drainage products, along with chambers, tanks and treatment systems for onsite wastewater. Its range covers non-residential, residential, infrastructure and agricultural construction, sold through national distribution networks. The NDS acquisition added channel drains, catch basins and access boxes for the residential market 1.

The company describes its model through the lifecycle of rainwater, from capture and conveyance to storage and treatment, so customers buy a complete package rather than pipe alone. This strategy of complementary products, called Allied Products, is presented as a driver of sales growth and market share 1.

Market context

The company estimates the stormwater industry, including irrigation, at roughly 14 billion USD a year, and the onsite wastewater market at about 2 billion USD, implying an addressable market of around 16 billion USD 1. These are the company's own estimates and have not been independently verified.

Demand depends on non-residential construction, infrastructure spending, farm income and mortgage rates. The company notes that demand trends in fiscal 2027 look similar to last year, but it remains cautious about the overall environment 13.

Trends

  • Conversion from traditional materialstailwind

    Thermoplastic pipe is lighter and cheaper to install than concrete or PVC, which could speed adoption. Broader regulatory approvals and polypropylene pipe could open new markets 1.

  • Trade policy and tariffsheadwind

    New tariffs could raise resin and transport costs and slow orders, especially if prices cannot be passed on to customers. The company has raised prices to cover these pressures, which has influenced order patterns 12.

  • Acquisitions and integrationmixed

    The NDS acquisition brought fast growth and a broader residential offer, but integration involves costs and the risk of synergies falling short. The company already reports integration costs and higher overhead 23.

  • Seasonality and weathermixed

    Sales are concentrated in the first two quarters of the fiscal year, and winter and extreme weather can delay projects. Climate change could increase the frequency of storms and flooding, with effects on demand and production 1.

Competitive position

The company says many competitors are less integrated in full water solutions and that barriers to entry are low, especially locally. Larger competitors with greater resources or through consolidation could gain market share 1.

Competing materials include concrete, steel and PVC, and traditional producers may cut prices to keep customers. ADS's edge could hold if it keeps selling complete product packages while keeping pace on pricing 1.

  • Concrete pipe and chamber producers

    Compete directly with plastic drainage pipe, cited in the filings as alternative materials in drainage and sewer markets.

  • PVC pipe producers

    Offer alternative drainage and sewer solutions, which the company describes as heavier and harder to install.

  • Steel pipe producers

    Compete in infrastructure and agriculture, cited as traditional materials that can be replaced.

  • Regional onsite treatment system suppliers

    Compete in the onsite wastewater market, where low entry barriers allow local entrants.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

  • Current report05 Oct 2026
    Material agreement · Regulation FD disclosure · Financial statements and exhibits
  • Quarterly report06 Aug 2026
  • Current report06 Aug 2026
    Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits
  • Current report16 Jul 2026
    Shareholder vote · Financial statements and exhibits
  • Current report18 Jun 2026
    Regulation FD disclosure · Financial statements and exhibits
  • Proxy statement03 Jun 2026
  • Current report21 May 2026
    Regulation FD disclosure · Financial statements and exhibits
  • Annual report21 May 2026
  • Current report21 May 2026
    Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits
  • Current report27 Feb 2026
    Material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits

Sources

  1. [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / Advanced Drainage Systems, Inc. · 21 May 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Advanced Drainage Systems, Inc. · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Advanced Drainage Systems, Inc. · 06 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.