# Advanced Drainage Systems, Inc. (WMS) — Stock CV

Advanced Drainage Systems, Inc. is a $9.49B industrial company. Revenue grew 50.8% over the last year, it keeps 14¢ of every dollar of sales as profit, and its net debt equals ~3.0 years of free cash flow. It trades at 21.3× earnings — in the cheapest third of its own history.

> Advanced Drainage Systems Inc designs, manufactures and markets water management solutions in the stormwater and onsite wastewater industries, providing superior drainage solutions for use in the construction and agriculture markets.

## Identity

- **Ticker**: WMS
- **Sector**: Industrials
- **Industry**: Building Products & Equipment
- **Headquarters**: HILLIARD, OH
- **Employees**: 6 425
- **Website**: https://www.adspipe.com
- **Market cap**: $9.49B
- **Last price**: $125.79
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $3.22B
- **Net income**: $451M
- **Free cash flow**: $550M
- **Net debt**: $1.62B
- **P/E**: 21.3
- **Revenue growth (YoY)**: 50.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 72 |
| Growth | 58 |
| Profitability | 72 |
| Health | 73 |
| Quality | 72 |
| Moat | 51 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +50.8% YoY
- [x] Profitable — $451M TTM
- [ ] Profit growing — -3.7% YoY
- [x] Generates cash — $550M TTM
- [x] Debt under control — ~3.0y of cash flow to repay
- [x] Established company — $9.49B market cap
- [x] Not printing shares — +9.5% shares over ~5y
- [x] Proven track record — 10/11 profitable years
- [x] Financially stable — Altman Z 3.4 — safe
- [x] Pays a dividend — yield 0.60%
- [x] Valuation not extreme — P/E 21.3

## Experience (career milestones)

- **FY2024** — Best year on record: $510M net income
- **2019** — The company acquired Infiltrator Water Technologies from the Ontario Teachers' Pension Plan for $1.08…
- **FY2016** — First recorded profitable year: $18.0M net income
- **FY2016** — Revenue already above $1B: $1.29B in first reported year
- **FY2016** — Positive free cash flow every year since: 11-year streak
- **2015** — The company acquired Ideal Pipe of Ontario for $45 million
- **2014** — The company became a public company via an initial public offering on the New York Stock Exchange,…
- **1966** — The company was founded in 1966 by Ron Martin and Marty Sixt, two engineers

## Strengths

- Revenue growing 50.8% year over year
- Strong cash conversion — FCF is 17.1% of revenue
- Interest covered 9.9× by operating earnings
- Altman Z-Score 3.37 — low bankruptcy-risk zone

## Watch-outs

- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $2.77B | $271M | $126M |
| FY2023 | $3.07B | $507M | $541M |
| FY2024 | $2.87B | $510M | $534M |
| FY2025 | $2.90B | $450M | $369M |
| FY2026 | $3.05B | $426M | $569M |

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Source: https://stockcv.com/WMS — derived from company filings; may be delayed or incomplete. Information, not investment advice.